KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected evasion of duties and taxes of Rs 6.78 million allegedly by M/s Shabbir Textile, it is learnt.
The official sources told Customs Today that M/s Shabbir Textile imported a consignment of different kinds of fabrics under the PCT Heading 2208.3501 and got it cleared from the Port Qasim Karachi vide GDs on July 17, 2017 by paying customs duty at 14 percent after claiming a benefit of SRO 623/2007.
However, the subject scrap is correctly classifiable under the PCT 2209.5847 attracting customs duty (CD) at 18.50 percent and income tax at 17 percent. Thus, by way of mis-declaration of classification, M/s Shabbir Textile evaded/ short-paid Rs 6.78 million.
So the importer has violated the provisions of Section 38 (1) (4) & (6A) of the Customs Act-1969, Section 7, 8 & 11 read with Section 40 of the Sales Tax Act-1990 and Section 152 of Income Tax Ordinance 2001 punishable under clauses (8) and 20 of Section 158(1) of the Customs Act-1969, Section 36 (6) of the Sales Tax Act-1990 and Section 149 & 182 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of Sales Tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.
Accordingly, an audit observation was issued to M/s Shabbir Textile for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and taxes.
The importer however failed to come up with any tangible evidence and explanation and was also unable to refute the charges leveled by the department.
