KARACHI: Farooq Corporation and Sain Enterprises, earlier suspected in import scam of battery-operated tricycles, have ‘confessed’ to evading taxes of near Rs one million in the Sindh High Court.
Ghulam ullah Sheikh advocate of Franklin Law Associates, appearing for the petitioners/importers Farooq Corporation and Sain Enterprises, the petitioners are ready to pay the evaded amount, asking the court to direct the respondents to release the consignment on payment of evaded amount, pending adjudication proceedings.
The SHC’s appellate bench, comprising Justice Munib Akhtar and Justice Muhammad Humayun Khan, also issued notices in this Rs 992,000 tax evasion case. The bench after hearing the counsel for petitioners issued notices to the respondents for Dec 23.
However, the petitioner also maintained that it was not a case of mis-declaration but it was a bona fide mistake by the shipper who instead of knocked down tricycles shipped assembled units.
Earlier, the authorities at Port Qasim had called the consignments of Farooq Corporation for examination after a mis-declaration scandal was unearthed.
The Directorate of Customs Intelligence (Enforcement) and Customs Collectorate (Appraisement-West) locked horns over the jurisdiction in this mis-declaration case and now the court is to decide jurisdiction of these authorities.
The accused company was importing baby battery-operated tricycles in guise of baby trike parts through mis-declaration of description and gross under valuation. After examination of the consignment by both the directorate and collectorate, it was confirmed that baby tricycle batteries were being imported instead of declared baby trike parts, evading taxes of Rs0.992 million.
Sources in Customs Intelligence (Enforcement) told Customs Today that the department thwarted the attempt of mis-declaration and lodged a case against the importer under Section 32(1), 32(2) and 32A. So it is not the case of Appraisement-West.
It is not yet known whether this importer used to clear consignments through mis-declaration in the past but it is likely the department would start investigation into already cleared more than 250 containers.
The sources also confirmed that five containers of the said importer (Farooq Corporation) now lying at Port Qasim and cannot be cleared without thorough investigation. Sources further stated that some Customs officials might be involved in the investigation.
When asked about clearance through Yellow Channel, sources said that it was the previous repute and image of the company after which it was allowed to use this channel.
Intelligence sources hoped that jurisdiction of the case will be decided on first hearing in the court.
Sources said that the authorities have called containers no TCNU4577167 and TEMU6799435 for examination, while the container no CAIU9226027 was examined on December 14 but required to be re-examined as at that time the whole fraud was not unearthed at that time.
Sources further said that BL No.: SZGW16110729 and IGM KAPE377 Index No. 186 were also cleared through alleged mis-declaration and must be included in investigation.
Sources revealed that the accused is trying to bribe his way out with these containers without proper investigations. But Customs department including the Intelligence and the Appraisement-West are not yet picking the bait. It remains to be seen whether proper investigations into all the consignments of the accused is done on merit or he is given a green chit without any investigations in lieu of personal benefits.
