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Home Breaking News

ONO: CAT directs Pak Suzuki to pay evaded revenue & penalties

byCT Report
05/09/2024
in Breaking News, Karachi, Latest News, Slider News
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KARACHI: Customs Appellate Tribunal (CAT) has upheld the Customs adjudication judgement in the case of M/s Pak Suzuki Motor directing the company to pay the evaded government revenue and penalties.

According to the details, M/s Pak Suzuki Motor Co. imported different consignments of raw materials, assemblies, sub-assemblies, components, and sub-components. These goods were released through the WcBOC System as per the company’s declarations.

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However, during desk audit conducted by the Director General of Audit Inland Revenue & Customs South, Karachi, revealed discrepancies. The audit, which covered import data from Collectorate of Customs Appraisement Port Mohammad Bin Qasim (PMBQ), Karachi, for the period from July 2021 to December 2021, found that Pak Suzuki Motor Co. imported goods under SRO 655 & 656 (1)/2006. These imports, intended for vehicle manufacturing, attracted an additional customs duty under SRO 845(1)/2021.

The audit report highlighted that Pak Suzuki Motor Co. availed exemptions on additional customs duty (ACD) under SRO 845(1)/2021.

According to the audit, these exemptions were only applicable to cars, jeeps, and light commercial vehicles in completely knocked down (CKD) condition up to 1,000cc and vehicles in completely built-up (CBU) condition up to 850cc. However, the company imported sub-components, components, sub-assemblies, assemblies, and materials, which did not qualify for the exemption.

The Collectorate’s allowance of these exemptions resulted in a significant loss of government revenue, amounting to Rs. 980,944,815 across 1,071 cases. The audit concluded that Pak Suzuki Motor Co. deliberately availed inadmissible exemptions, evading legitimate government revenue to the tune of Rs. 3,034,538.

Customs Adjudication upheld the charges of mis-declaration and revenue evasion, ordering Pak Suzuki Motor Co. to pay the evaded amount along with a penalty of Rs. 0.5 million.

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