KARACHI: Collectorate of Customs Adjudication-I, Collector Dr Wasif Memon has issued an Order-in-Original (ONO) 426/2015-16 against M/s Jadeed Feeds Industries Rawalpindi for evading duties/taxes to the tune of Rs 20.62 million on import of silos classifiable under PCT heading 9406.0030. A penalty of Rs 1,000,000 has also been imposed on the importer.
The evasion of sales tax was found during the scrutiny of import data pertaining to silos by the PCA Directorate.
Sources told Customs Today that the importer M/s Jadeed Feeds Industries had imported silos from the United States and availed concession of 8th Schedule (Sales Tax) and paid reduced rates of Sales Tax at 5 percent on the import of “Grain Storage Silos with all standard accessories” under PCT Heading 9406.0030.
The 8th Schedule (Sales Tax) extends benefits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the silos are for storage purposes and do not qualifies the definition of machinery and equipments, sources added.
After hearing both the sides, the Collector Adjudication-I has directed the importer to pay the evaded amount besides a penalty of Rs 1,000,000 has also been imposed.
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