KARACHI: The Directorate of Customs’ Post Clearance Audit (PCA) has detected evasion of duties and taxes of Rs 4.55 million by M/s Noushaba Steel, it is learnt.
The official sources told Customs Today that M/s Noushaba Steel imported a consignment of different kinds of steel scrape under the PCT Heading 2401.7802 and got it cleared from the Port Qasim Karachi vide GDs on July 8, 2017 by paying customs duty at 12.02 percent after claiming a benefit of SRO 649/2007.
However, the subject scrape are correctly classifiable under the PCT 2406.7458 attracting customs duty (CD) at 16.50 percent and income tax at 5 percent. Thus, by way of mis-declaration of classification, M/s Noushaba Steel evaded/short-paid Rs4.55 million.
So the importer has violated the provisions of Section 36 (1) (2) & (3A) of the Customs Act-1969, Section 7, 9 & 11 read with Section 38 of the Sales Tax Act-1990 and Section 150 of Income Tax Ordinance 2001 punishable under clauses (6) and 18 of Section 156(1) of the Customs Act 1969, Section 36(8) of the Sales Tax Act-1990 and Section 148 & 179 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 Income Tax Ordinance 2001.
Accordingly, an audit observation was issued to M/s Noushaba Steel for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and taxes. The importer however failed to come up with any tangible evidence and explanation and was also unable to refute the charges leveled by the department.
