KARACHI: Directorate General of Post Clearance Audit (PCA) has detected evasion of duties/taxes to the tune of Rs 1,015,677 by M/s Nasir Corporation by misusing SRO 659(I)/2007, it is learnt. The case was detected by Assistant Director PCA Sajid Ali Baloch while scrutinizing the import data of spray paint.
According to sources, M/s Nasir Corporation imported ten consignments of aerosol spray paints under PCT Heading 3208.9090 paying customs duty @ 12.5% after claiming benefit of SRO 659(I)/2007 dated 03.06.2007. However, the subject goods are correctly classifiable under PCT 3208.2090 attracting customs duty @ 20% sales tax @ 17%, additional sales tax @3 % and income tax @ 6%.
Thus, by way of mis-declaration of classification, M/s Nasir Corporation, Karachi, evaded/short paid Rs 1,015,677. Therefore, the Importer, has violated the provisions of Section 32 (1) (2) & (3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 34 of the Sales Tax Act 1990 and Section 148 of Income Tax Ordinance 2001 punishable under clauses (1), and 14 of Section 156(1) of the Customs Act 1969, Section 33(5) of the sales tax Act, 1990 and Section 148 & 182 of Income Tax Ordinance 2001 and section 7A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Special procedure Rules 2007(special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.
Accordingly, an audit observation was issued to M/s Nasir Corporation for explaining and clarifying as to on what basis they have avoided/ evaded the leviable duty and 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 herewith for initiation of adjudication proceedings in the case.
