KARACHI: Directorate of Post Clearance Audit (PCA) Karachi has detected evasion of duties/taxes worth Rs 900,980 by M/s Wateen WiMAX (Private) Limited, it is learnt.
Official sources told Customs Today that scrutiny of the import data of ‘Networking Equipment Service and Route Processing Unit’ revealed that it correctly fell under PCT heading 8517.6990, but certain mobile communication companies imported such equipment by mis-declaring the same under PCT Heading 8471.5000. Thus they have made a deliberate and willful attempt to evade duty/taxes by way of mis-declaration of classification of these items.
M/s Wateen Wimax (Pvt) Limited imported ‘Networking Equipment Service and Route Processing Unit’ by mis-declaring them in the PCT heading 8471.5000.
According to the Pakistan Customs Tariff (Vol-I), the description of goods given under the main heading 84.71 reads as: “Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included.”
In order to classify the goods more specifically, under single dash heading 8471.5000, we need to look into the description of goods given under this heading which reads as follows :
“Processing units other than those of sub-heading 8471.49 whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units.”
Thus, by way of mis-declaration of classification, M/s. Wateen Wimax (Pvt) Ltd, Lahore with the active connivance of their clearing agents M/s. Arshad Sualeh Corporation has evaded/short paid Rs 909,980/.
Accordingly, an audit observation was issued to M/s Wateen Wimax (Pvt) Ltd, Lahorefor 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.
In view of above, contravention report is forwarded to the Collector, Collectorate of Customs Adjudication-I, for initiating adjudication proceedings in the case.
