KARACHI: The Directorate of Post Clearance Audit (PCA), Karachi, has served a contravention report on M/s Asra Enterprises for evasion of duties and taxes to the tune of Rs 479,923 on import of highlighters, it is learnt.
Official sources told Customs Today that M/s Asra Enterprises imported two consignments of highlighters under PCT Heading 9608.2000 by claiming incorrect/inadmissible exemption of serial no 30 of SRO 501(I)/2013. However, the subject goods are correctly classifiable under PCT 9608.2000.
Thus by way of mis-declaration of classification, M/s Asra Enterprises has evaded/short paid duties/taxes worth Rs 479,923. Therefore, the importer has violated the provision of Section 32(1)(2)&(3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 34 of the Sales Tax Act, 1990 and Section 148 of Income Tax Ordinance 2001 punishable under clauses (1), and 14 of Section 156(1) of the Customs Act, 1969, Section 33(5) of the Sales Tax Act, 1990 and Section 148 & 182 of Income Tax Ordinance 2001 and Section 7A 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 Asra Enterprises for explaining and clarifying as to on what basis they have avoided/evaded the leviable 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.
In view of the aforesaid M/s Asra Enterprises are held to have intentionally and willfully caused loss to the government exchequer amounting to Rs 479,923.
In this regard, the PCA directorate has forwarded a contravention report for initiation of adjudication proceedings in the case.
