KARACHI: The Directorate of Customs Post Clearance Audit has detected duty and tax evasion of Rs5.36million by M/s Sattar Garments and Export Karachi, it is learnt here.
Sources told Customs Today that M/s Sattar Garments and Export Karachi imported a consignment of printing and ruling machines including cotton folding machines, and got it cleared from the PICT Karachi vide GDs on November 17, 2017 by paying customs duty at 10 percent after claiming the benefit of the SRO 567/2007.
However the subject items were correctly classifiable under the PCT 2408.3658 attracting customs duty at 16 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs5.36million. The goods were cleared by Head Examiner Shams Uddin.
Sources said the importer violated the provisions of Section 28 (4) & (4A) of the Customs Act-1969, Section 16 read with Section 25 of the Sales Tax Act-1990 and Section 144 of Income Tax Ordinance 2001 punishable under clauses (240) and 127 of Section 474(8) of the Customs Act-1969, Section 79 of the Sales Tax Act-1990 and Section 88 & 149 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of the Income Tax Ordinance 2001.
It is necessary to mention here that the Post Clearance Audit has unearthed a number of cases during the last month of December.
