KARACHI: The Pakistan Customs Post Clearance Audit (PCA) Karachi has issued a contravention report against M/s Descon Engineering Limited for causing loss to the national kitty by evading Rs 1,080,088 duties/taxes.
M/s Descon Engineering Limited had imported machinery parts and spares etc by taking undue benefits of SRO 575(I)/2006.
The scrutiny of the import data revealed that importer had imported consignment of machinery parts and spares and got them cleared from Model Customs Collectorate-Preventive availing inadmissible exemptions of Customs Duty as in excess of 5 percent under Sr No 21 of SRO 575(I)/2006 dated 6.5.2006 while the imported goods did not fall within the ambit of plant, machinery, equipment spares and accessories required for manufacturer or production of any good.
Hence, the importer M/s Descon Engineering Limited evaded Rs 1,080,088 including Customs Duty Rs 606,351.8, Sales Tax Rs 440,089.8 and Income Tax Rs 33,647.1.
The evasion of customs duty/tax on account of availing inadmissible benefit of Sr.21 of SRO 575(I)/2006 dated 5.6.2006. Therefore, violated the provision of Section 32(1)(2) and (3A) of the Customs Act, 1969 punishable under clauses 1 and 14 of Section 156(1) of the Customs Act, 1969 read with Section 33 of the Sales Tax Act, 1990, chapter X of the Sales Tax special procedure Rules 2007 (special procedures for payment of sales tax by the importers) and Section 148 of Income Tax Ordinance.
