KARACHI: Collectorate of Customs Adjudication-I Collector Dr Wasif Memon has issued an Order-in-Original against M/s Royal Roller Flour Mills – Lahore which allegedly evaded Rs 5.33 million duties/taxes on of silos import classifiable under PCT Heading 9406.0030. A penalty of Rs 200,000 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.
According to details, the importer M/s Royal Roller Flour Mills (Private) Limited had imported silos from the United States with Goods Declaration (GD) KPPI-HC-45841 dated March 3, 2015.
According to sources, the importer M/s Royal Roller Flour Mills availed the 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 equipment, sources added.
Therefore, the sources said that the benefits of reduced rate of sales tax was not admissible in this case and was chargeable to Sales Tax at 17 percent.
After hearing both the sides, the Collector Adjudication-I has directed the importer to pay the evaded amount besides a penalty of Rs 200,000 has also been imposed.
