KARACHI: The Customs Directorate of Post Clearance Audit (PCA) Karachi has issued an audit observation against M/s Agro Processors and Atmospheric Gases (Private) Limited for evading taxes and duties to the tune of Rs 17.4 million on the import of RBD palm olein.
The scrutiny of import data revealed that M/s Agro Processors and Atmospheric Gases had imported RBD palm olien under PCT Heading 1511.9030 through MCC Port Muhammad Bin Qasim, Karachi without payment of Rs 7,692.5 / PMT, custom duty, 17 percent sales tax, and one percent income tax. Olein was imported from Malaysia.
The importers claimed the benefits of SRO 450(I)/2001 dated 18.6.2001, however, the GD is not showing any details, no concessionary notification claimed for sales tax or CED. The imported goods are not covered under the claimed SRO and under the zero rating concessions of Income Tax Ordinance 2001.
Therefore, M/s Agro Processors and Atmospheric Gases are liable to pay short paid amount which comes to a total of Rs 17.4 million that included Rs 3.84 million custom duty, Rs 10.1 million sales tax and Rs 3.47 million withholding tax.
The importers are directed to deposit the short levied amount in the national exchequer within 10 days with intimation to this office.
