KARACHI: Customs Directorate of Post Clearance Audit (PCA) has detected evasion of duties/taxes to the tune of Rs 1.914 million by M/s Crest Corporation on import of highlighters, it is learnt.
According to official sources, the PCA directorate while scrutinizing import data found that M/s Crest Corporation imported five consignments of highlighters under PCT Heading 9608.2000 by claiming incorrect/ inadmissible exemption of serial 12 of 5th Schedule (Sales Tax), Serial 97 of the 6th Schedule of Sales Tax Act, 1990, and serial no. 30 of SRO 501 (I)/2013 paying sales tax and additional sales tax @ 0%. However, the subject goods are correctly classifiable under PCT 9608.2000 attracting customs duty @ 20% sales tax @ 17%, additional sales tax @3 % and income tax @ 6%, as the subject goods are not covered under the claimed SROs/exemptions.
Thus, by way of mis-declaration of classification, M/s Crest Corporation evaded/short paid Rs 1,914,439. 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 Crest Corporation 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 Crest Corporation are held to have intentionally and willfully caused loss to the Government exchequer amounting to Rs 1,914,439. The contravention report is forwarded herewith for initiation of adjudication proceedings in the case.
