KARACHI: The Customs Post Clearance Audit PCA-Karachi has detected tax evasion to the tune of Rs 3.6 million by M/s Universal Enterprises for availing concessionary benefits of SRO 1125(I)/2011 dated 31.12.2011 and SRO 638(I)/2005 in three consignments.
The PCA-Karachi Directorate, on scrutiny/audit of import data, found that M/s Universal Enterprises imported “Privac 400ML Operation Theater System Large-Lock Connection (QTY 25000 PCS)” under PCT heading 9018.3990 dated 31.12.2014 through MCC Appraisement (East), Custom House, Karachi, at a unit value of 0.3415 euro per piece from Germany. It is evident from the history of the importers that a case of under valuation of the identical item found and adjudicated vide Order-in-Original No. ONO – 411048 – 26082015 on the basis of invoice found in the container at the time of examination, showing unit value at the rate of 1.0742 euro per piece and the goods were assessed and cleared by the importers on the found value.
Thus, M/s Universal Enterprises, Karachi is required to pay custom duty and other taxes at the ascertained unit value of 1.0742 per piece euro on the identical item imported vide the above mentioned GD. This resulted in short levy of Rs 112,309 in custom duty, Rs. 471,700 in sales tax and additional sales tax and Rs 169,812 in income tax. The total short levy stands at Rs 753,821. The importers are directed to deposit the short levied amount in the national exchequer within 10 days with intimation to this office.
In another case, it was found that M/s Universal Enterprises imported “Privac 400ML Operation Theater System Large-Lock Connection (Total QTY in 2 GDs 40000 PCS)” under PCT heading 9018.3990 dated 30.5.2012 and 8.1.2013 through MCC Port Muhammad Bin Qasim, Karachi and MCC Appraisement (East), at a unit value 0.3415 euro per piece and 0.40 euro per piece respectively from Germany. It is evident from the history of the importers that a case of under valuation of the identical item from same origin and same supplier found and adjudicated vide Order-in-Original No. ONO – 411048 – 26082015 on the basis of invoice found in the container at the time of examination, showing unit value at the rate of 1.0742 euro per piece and the goods were assessed and cleared by the importers on the found value.
Further the importer have claimed benefit of SRO 1125(I)/2011 dated 31.12.2011 for concessions of sales tax, SRO 638(I)/2005 dated 27.06.2005 and section 148 of the Income Tax Ordinance 2001 for the concessions of the income tax. The imported item is not covered under the definition of surgical goods; as the importers themselves have paid the sales tax in other GDs on the same item, as it is not covered under the claimed SRO for sales tax concessions.
