LAHORE: The Customs Post Clarence Audit (PCA) has detected Rs 1.38 million tax evasion by Tara Crop Science (Private) Limited Canal Bank, Johar Town, Lahore on account of inadmissible exemption of SRO 567 (I) 2006 and SRO 1007 (1)/ 2005.
The Directorate of the Post Clearance Audit Lahore observed that certain importers, engaged in manufacturing of pesticides and other agro chemicals, are allegedly involved in the evasion of duties and tax during customs clearance of zinc sulphate 33 percent which is classified under PCT heading 2833, 2940 by availing irregular exemption of customs duty under S. No 4 of SRO567 (1)/2006 and exemption of sales tax S. No 5 of table-II of SRO 1007 (I) 2005. The PCA observed that the said SROs were meant for poultry ingredients only.
It was observed that Tara Crop imported a consignment of the impugned goods which were prima facie were fertilizers and as such not entitled for the exemption of customs duty and sales tax under the said SROs during calendar year 2014.
The PCA said that the mis-declaration resulted in the duty and taxes evasion to the tune of Rs 1.38 million and added that it is directed that the short paid amount may be deposited positively.
The directorate said that in case of disagreement with the audit observations, the company may provide a written clarification along-with supporting documents including goods declaration, commercial Performa invoice, L/C invoices, packing list contract purchase order and other relevant documents within the stipulated time.
