KARACHI: Directorate of Customs’ Post Clearance Audit (PCA) has detected evasion of duties/taxes of Rs 469,755 by M/s Brooks Impex in November 2016, it is learnt.
According to sources, M/s Brooks Impex imported three consignments of aerosol spray paints under PCT Heading 3208.9090 and cleared the same from Customs Appraisement West, Custom House through their clearing agent M/s Zed Bee Enterprises paying customs duty @ 12.5% after claiming benefit of SRO 659(I)/2007 dated 03.06.2007. However, the subject goods are correctly classifiable under PCT 3208.2090 attracting customs duty @ 20% sales tax @ 17%, additional sales tax @3 % and income tax @ 6%.
Thus, by way of mis-declaration of classification, M/s Brooks Impex evaded/short paid Rs 469,755. Therefore, the importer, has violated the provisions 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 Brooks Impex for explaining and clarifying as to on what basis they have avoided/ evaded the leviable 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.
In view of the aforesaid M/s Brooks Impex are held to have intentionally & willfully caused loss to the Government exchequer amounting to Rs. 469,755. The contravention report is forwarded for initiation of adjudication proceedings in the case.
