MULTAN: Directorate of Post Clearance Audit (PCA) has detected tax evasion of Rs 5.864 million by M/s Suncrop Pesticides on the import consignments during audit.
According to the details, M/s Suncrop Pesticide is a Multan based company which is manufacturing herbicides, insecticides and fertilizer products being used for protection of crops. M/s Suncrop Pesticides Dera Ghazi Khan Unit has imported Zinc Sulphate chemical in granule form (feed grade) for the manufacturing of pesticides. The company had imported two consignments from Multan Dry Port in 2014 and 2015 which were prima facia fertilizers and they were not entitled for the exemptions of customs duty and sales tax.
During the scrutiny of their import data, it was revealed that company has availed exemptions on customs duty under SRO .567(I)/2006 and sales tax exemption under SRO 1007(I)/2005 for the import of their consignments. M/s Suncrop Pesticides has availed exemptions at the time of clearance but these SROs were conditional and were meant for the consumption as ingredient in manufacturing of poultry feed only.
Importer was asked to provide record regarding the consumption of imported Zinc Sulphate for confirmation that imported goods were bonfidely imported for meant purpose. The company failed to produce record regarding the consumption of imported Zinc Sulphate and importer have not consumed Zinc Sulphate as an ingredient of Poultry feed but availed irregular exemption of duties taxes on the tune of Rs5864,005/-. These taxes includes customs duty of Rs1.274 million, sales tax of Rs4.283 million and Income tax of Rs.305,706.
Post Clearance Audit has formed contravention report against M/s Suncrop Pesticides under provisions of Section 26,32 (I),(2) and (3A) of the Customs Act 1969 section 3,6 and 11 of the Sales Act 1990 and section 148 of the Income Tax Ordinance 2001 ,punishable under section 156 (I)(12) &(14) of the Customs Act 1969,section 33/34 of the Sales Tax Act 1990 and section 182(14) of the Income Tax Ordinance 2001.
Deputy Director Post Clearance Audit Tauqeer Butt has forwarded contravention report to collector Customs Adjudication for the trial after its detection.
