KARACHI: The Directorate of Post Clearance Audit – Karachi has detected tax evasion to the tune of Rs 4.6 million by M/s Yousuf and Company on import of broken and damaged computer Crt Circuit Boards and damaged LCD junk, used computer parts keyboard and mouse, used Crt picture tube, computer system Bare Bone without ram and hard drive weak and fuse Crt monitor tube wastage. The PCA has also served an audit observation to the importer under Section 26 and 32 of the Customs Act, 1969.
The PCA, while scrutinizing import data, found that M/s Yousuf and Company on import of broken and damaged computer Crt Circuit Boards and damaged LCD junk, used computer parts keyboard and mouse, used Crt picture tube, computer system Bare Bone without Ram and hard drive weak and fuse Crt monitor tube wastage through Customs Appraisement East and got their goods released with benefits of SRO 549(I)/2008 dated 11.6.2008.
The description Broken and Damaged Computer CRT Circuit Boards and damaged LCD junk, weak and fuse CRT Monitor tubes wastage are correctly classifiable under PCT Heading 8548.9000 attracting custom duty at 25 percent instead of 20 percent and used CRT Picture Tube are correctly classifiable under PCT Heading 8529.9090 attracting customs duty at percent instead of zero percent.
Further, the imported items under declared PCT headings are not covered under the claimed SRO 549(I)/2008 read with SRO 230(I)/2011.
Moreover, the subject imported goods are also not covered under the claimed SRO 549(I)/2008 as the goods are in old and used, broken, damaged and wastage condition. Further the online status shows business nature as service provider.
Therefore, the exemption under the claimed SRO is not admissible rather the importers were required to pay customs duty and sales tax as per correct PCT Headings. Hence, the importer M/s Yousuf and Company, Karachi has been instructed to pay the evaded amount of duty and taxes.
