KARACHI: The Customs Post Clearance Audit (PCA) has detected tax evasion to the tune of Rs 26 million by M/s Master Beverages and Food Limited – Gujranwala through mis-declaration.
According to sources, during the scrutiny of import data related to concessionary imports/clearances of plant, machinery, equipment and apparatus, including capital goods for various industries/sectors made under Fifth Schedule to The Customs Act 1969 for use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock, dairy and poultry industry, it has been observed that certain importers have availed the concession illegally because, under this Schedule concession is available to the imports exclusively made by the manufacturers after fulfilling the conditions specified in column (5) of the Table given in the Schedule.
In addition to that only those goods are liable to such concession which are not listed in the locally manufactured items, notified through a Customs General Order issued by the Federal Board of Revenue (FBR) from time to time or, as the case may be, certified as such by the Engineering Development Board; and for such machinery and equipment imported as plant for setting up of a new industrial units provided the imports are made against valid contract (s) or letter (s) of credit and the total C&F value of such imports for the project is US $ 50 million or above.
The goods are meant for establishing dairy farm but on-line NTN verification available on FBR’s website shows that the principal business activity of the importer is ‘manufacture of soft drinks, production of mineral water and bottled waters’ which, obviously has no connection with the dairy industry. In addition to that, the conditions specified in column (5) of the table given in the Schedule for the import of such goods is that the goods shall be imported by the Agriculture Sector only.
The PCA authorities have instructed the importer to pay the short-paid taxes/duties as soon as possible.
