KARACHI: Directorate General Customs Post Clearance Audit, Karachi Directorate, has unearthed evasion of taxes/duties to the tune of Rs 100 million allegedly by M/s Pak Telecom Mobile Limited, it is learnt.
The case was detected by PCA Assistant Director Sajid Ali Baloch while the contravention report has also been forwarded to the Collectorate of Adjudication-II for further perusal.
According to sources, scrutiny of import data of ‘telecommunication equipment and batteries for telephone exchanges’ falling under PCT heading 8507.2010, chargeable to CD @ 10 % it has been observed that certain Mobile Communication Companies have imported multi purpose Batteries & power equipment, 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 % duty/taxes.
M/s Pak Telecom Mobile , Islamabad imported ‘Telecommunication Equipments, Power Support Systems, VRLA Batteries, Rechargeable Batteries, Battery Rex with accessories etc’ by mis-declaring them in the PCT heading 8507.2010 (which is a specified heading for Lead Acid Batteries used in Telephone Exchanges) 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. Pak Telecom Mobile Ltd, Islamabad, with the active connivance of their Clearing Agents M/s Eastern Freight Services has evaded/short paid Rs 100.256 million
Accordingly, an Audit Observation was issued to M/s. Pak Telecom Mobile Ltd, Islamabad, 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.
Now, the PCA authorities have forwarded a contravention report to Collector, Collectorate of Customs Adjudication-I, for initiating adjudication proceedings in the case.
