KARACHI: Customs Post Clearance Audit (PCA) South has registered an FIR against M/s Eastern Steel Karachi for tax evasion worth Rs2 billion. The company is involved in gross misuse of Export Facilitation Scheme (EFS), enabling the company to evade taxes of Rs358 million.
According to the details, during thorough scrutiny of M/s Eastern Steel’s import and consumption records. The investigation led to the discovery that an overwhelming 2,961 MT of exempt assorted scrap goods had been stealthily removed and sold in clear violation of the tax regulations.
The proprietor of the firm, Hafiz Muhammad Shahzad, was confronted with the egregious gaps in his inventory. Despite being tasked with justifying the stark disparity between the imports, factory outputs, and various business facets—including labor employment, factory size, utility consumption, and waste transport—he failed to produce any credible explanation. The pretext of ignorance or accounting errors quickly dissipated, leaving only the shadow of deceit and deliberate circumvention of the law.
The crackdown on M/s Eastern Steel was supervised by Director General PCA Chaudhary Zulfiqar Ali and Director PCA South, Sheeraz Ahmed. Their teams’ tenacity and insight were paramount in unraveling the multi-million rupee fraud. By taking this stern action, the PCA has reinforced its stance against economic malfeasance and issued a resounding deterrent to those entertaining similar illicit ambitions.
