KARACHI: The Collectorate of Customs Adjudication-II has issued a show-cause notice to M/s Noor Silk for evading Rs 3.8 million on import of viscose rayon, filament yarn by claiming inadmissible benefit of SRO 1125(1)/2011 dated 31.12.2011.
According to details, it has been reported by the Directorate of Post Clearance Audit Karachi while scrutinizing import data found that M/s Noor Silk imported consignments of viscose rayon, filament yarn through Model Customs Collectorate Appraisement East and illegally availed the benefit of concessionary rates of sales tax and income tax.
The concession offered vide SRO 1125(1)/2011 dated 11.12.2011 are only admissible to manufacturers of goods covered in five sectors only as highlighted in the conditions given in the said notification.
And where, on further analysis it transpired that the status of M/s Noor Silk as available online in the FBR website’s NTN inquiry, was that of an importers/exporters/service provider and the concern was not registered as a manufacturer at the time of alleged imports.
Therefore, an amount of Rs 3,840,628 (sales tax amounting to Rs 3,802,602 and withholding tax amounting to Rs 38,026) had been short paid/evaded by the importers on account of paying concessionary rate of sales tax and withholding income tax otherwise not admissible to them.
And whereas, an audit observation was issued to the importer dated 29.9.2014 for explaining and clarifying the basis of claiming and availing concessions at the time of imports. The importers, however, failed to come up with any tangible evidence and were also unable to refute the charges leveled by the Directorate of PCA.
Therefore, M/s Noor Silk violated the provisions of Sections 32(1), 32(2) and 32(3A) of the Customs Act, 1969, Sections 3(1), Sections 3, 6, 7 read with Section 34 of the Sales Tax Act, 1990 and Section 148 of the Income Tax Ordinance 2001, punishable under clauses (1), (9), and 14 of Section 156(1) of the Customs Act, 1969, Section 33(5) 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 the importer) and under relevant provisions of Section 148 of the Income Tax Ordinance, 2001.
