KARACHI: The Directorate of Post Clearance Audit – Karachi has detected tax evasion of at least Rs 6.3 million allegedly by M/s Orient Electronics (Private) Limited on import of LED bulb plastics with aluminum, SMD spot light, panel light etc. And, the PCA has also issued an audit observation under Section 26 and 32 of the Customs Act, 1969.
The PCA, while scrutinizing import data, found that M/s Orient Electronics imported declared to be “LED bulb plastic with aluminium, SMD spot light, panel light, AC 90 – 260 volts, flood light and filament bulb etc.” through Customs Appraisement West/East and claimed benefits of Fifth Schedule, Sixth Schedule.
According to sources, the exemptions are only available to SMD, LEDs with or without ballast with fittings and fixtures for promotion of the renewable energy technologies as per notification mentioned above. Whereas, clause 77 part-IV Second Schedule of Income Tax Ordinance, 2001 is more restrictive and allows exemption to items with dedicated use of renewable source of energy which includes sources like solar and wind power only.
The images of the import documents like “invoice and packing list” available in the system clearly shows, as declared by the importers that the imported items are operative / works at alternating current of ranges AC 90-260 volts which is the normal thermal / hydral power sources normally produced and used in Pakistan.
It is an undeniable proof that the imported goods are not meant for to work / operate with the renewable energy sources like Solar Energy or Wind Energy as the imported goods operate on alternating current (AC) voltage rather than on direct current (DC) which is specifically used / and operate in the renewable energy technologies. Therefore, the concessions under the claimed notifications are not available to the subject imports.
Therefore importer M/s Orient Electronics (PVT.) Limited, Lahore has been instructed to pay the evaded amount at the earliest.
