KARACHI: The Research and Development (R&D) Section of Model Customs Collectorate of Appraisement (East) has made the Contravention Report (CR) against the importer M/s Siddiqsons Ltd in its alleged involvement in tax evasion of Rs20343390 in share of duty/taxes.
According to details, the R&D officials under the supervision of the Collector, MCC-Appraisement (East) Najeeb-ur-Rehman Abbasi have detected a case of tax evasion against the importer M/s Siddiqsons in which the importer tried to import and cleared air covered yarn of PCT heading 5402.6200, chargeable to CD @10 per cent ad-valorem cleared in the garb of spandex/lycra under PCT heading 5402.4410 chargeable to Customs Duty @ 0 per cent (now 1 per cent in the current budget).
During the investigation, the R&D Section found that the importer paid total taxes to the tune of Rs6183979 in terms of Customs Duty, Sales Tax and Income Tax including Rs631514 in share of Customs Duty, Rs3467413 in share of Sales Tax and Rs2085052 in share of Income Tax.
However; the total leviable duty/taxes as per the detection of R&D Section was Rs26527369 including Customs Duty of Rs20440634; Income Tax of Rs2286473 and Sales Tax of Rs3800262.
Therefore, the R&D Section of MCC-Appraisement (East) detected that the importer M/s Siddiqsons Ltd was involved in tax evasion of Rs20343390 including Customs Duty of Rs19809120; Sales Tax of Rs332849 and Income Tax of Rs201421.
Hence, the R&D Section found that the importer M/s Siddiqsons has violated the Sections 20, 26, 32(1), 32(2), 32(3)A, 32A, 79 and 80 of the Customs Act, 1969 punishable under Clauses 10A, 12, 14, 14A and 43 of the Section 156(1) of the Customs Act, 1969 read with Section 36 of the Sales Tax Act, 1990 punishable under Section 33 of the Sales Tax, 1990 and read with Section 148 of Income Tax Ordinance 2001.
The case has been forwarded to the Collectorate of Customs Adjudication-II for further legal proceedings.
