KARACHI: Collector, Collectorate of Customs Adjudication-I, Dr Wasif Memon has issued an Order-in-Original against M/s Salwa Feed Mills (Private) Limited for evading Rs 4.5633m duties/taxes on 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, importer M/s Salwa Feed Mills had imported silos from the United States with Goods Declaration (GD) KPPI-HC-4005 dated July 11, 2015, sources told Customs Today.
According to sources, the importer M/s Salwa Feed Mills Pvt Ltd 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.
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 advised the importer to pay the evaded duties/taxes besides a penalty of Rs 200,000 is also imposed on the importer.
