KARACHI: Collectorate of Customs Adjudication-II has issued show-cause notice against the importer M/s Falak Weaving in connection with tax evasion of Rs 2,122,514 in share of Additional Sales Tax (AST) of Rs 1,050,749 and Income Tax of Rs 1,071,764 by misusing the SRO 1125(I)/2011.
The importer M/s Falak Weaving on its import of textile fabric (137,323kg) worth Rs 52,537,464 through Goods Declarations (GDs) KAPE-HC-16980-10072013, KAPE-HC-8965-03082013, KAPE-HC-14575-22082013, KAPE-HC-21476-14092013, KAPE-HC-39747-08112013, KAPE-HC-39750-08112013, KAPE-HC-44028-23112013 and KAPE-HC-44032-23112013 violated the Section 3,4,6,7A,8(1b),34,36 and 71 of the Sales Tax Act, 1990, further read with the Section 148 of the Income Tax Ordinance 2001, punishable under clauses (14) of Section 156(1) of the Customs Act, 1969 read with Section 33&34 of the Sales Tax Act, 1990.
Directorate of Intelligence and Investigation-Customs, Karachi in its contravention report stated that the said importer was misusing SRO 1125 (I)/2011 by clearing the imported fabric as industrial manufacturers whereas either their manufacturing units do not exist at the notified business addresses or even if they exist, have no or modicum manufacturing facility and have inflicted huge loss to national exchequer.
It was further stated that the manufacturing unit has not been found existing on the mentioned place at the notified business address, adding that non-existence of the unit was an ample proof establishing beyond any doubt that the importer’s previous clearance as industrial manufacturer under SRO 1125(I)/2011 and availed exemption of taxes to the extent of 2 per cent as AST and 2 per cent as Income Tax were quite illegal and unlawful.
The hearing of the case would be held on 2 June, 2014 at the Office of the Collectorate of Customs Adjudication-II at noon.
