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M/s Magnet Communication evades Rs 561,368 on import batteries: PCA

byAftab Channa
15/10/2016
in Karachi, Latest News
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KARACHI: The Directorate General, Post Clearance Audit (PCA) has detected evasion of duties/taxes worth Rs 561,368 on import of sealed-lead acid storage batteries for BTS exchange by claiming inadmissible benefits under PCT Heading 8507.2010.

According to sources, it has been observed that certain mobile communication companies have imported multipurpose batteries, evidently not for the use in telephone exchanges under this PCT Heading, while such batteries are correctly classifiable under PCT heading 8507.2090 chargeable to CD @ 20 %. Thus by misdeclaring these multi-purpose batteries under PCT heading 8507.2010 they have made a deliberate and willful attempt to evade duty/taxes.

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M/s Magnet Communications imported 15 consignments of ‘Sealed Lead-Acid Storage Batteries for BTS Exchange’ by misdeclaring them in the PCT heading 8507.2010 chargeable to CD @ 10% instead of declaring them under their correct PCT heading 8507.2090 chargeable to CD @ 20%. Thus, by way of mis-declaration of classification, M/s Magnet Communication evaded/short Rs 561,368.

Accordingly, an audit observation was issued to M/s0 Magnet Communication 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.

The contravention report is forwarded to the Collector, Collectorate of Customs Adjudication-II, for initiating adjudication proceedings in the case.

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