KARACHI: Directorate of Post Clearance Audit (PCA) detected tax evasion of Rs 461,196 made by the M/s Imran International Linkers through under invoicing. The audit observation has been issued under Section 26 and 32 of the Customs Act, 1969.
The PCA while scrutinizing import data found that M/s Imran International imported “Blender SMTHR13 240V QB7D J2 SL EU and A1-34Q-34S Blender SMTHR13 240V QB7D 22QT J2” under PCT heading 8509.8000 through Model Customs Collectorate Preventive, at a unit value of $97.0 per piece from United States.
It is evident from the history of another importer that a case of under valuation of the identical item from the same supplier and origin i.e. “Blendtec A Division of K Tec USA” has been found and adjudicated vide Order-in-Original (ONO) No. 133222 and 02102013 on the basis of invoice found in the container at the time of examination, showing unit value at the rate of $718.48 per piece and the goods were adjudicated, assessed and cleared by the importer on the found value. The difference of declared and found value is to the extent of approx 640 percent, when freight is added in the fob value.
The import by M/s Imran International Linkers, Karachi, vide above mentioned GD was also made from the same supplier and for the same items, therefore, it is also under invoiced in the same way.
M/s Imran International Linkers, Karachi, were required to pay custom duty and other taxes at the ascertained unit value of $718.48 per piece considering under-invoicing to the extent of 640 percent.
This has resulted in short levy of Rs 230,172 as custom duty, Rs 146,294 in wake of sales tax, Rs 29,923 in wake of additional sales tax and Rs 54,807 as income tax, while the total value is Rs 461,196. The importers are directed to deposit the short levied amount in the national exchequer within 10 days with intimation to this office.
In case, M/s Imran International Linkers, Karachi, are of the opinion that the above finding is incorrect or that the short paid amount has been erroneously calculated or it has already been deposited, it is requested to provide a self-explanatory written reply with viable documentary evidences and complete set of import documents within 10 days from the issuance of this Audit Observation.
