KARACHI: The Post Clearance Audit (PCA) has detected evasion of duty/taxes of Rs 71,502 by M/s Modern Corporation, it is learnt.
Sources said that M/s Modern Corporation imported a consignment of aerosol spray paints under PCT Heading 3208.9090 and cleared the same from Customs Appraisement-West after claiming benefit of SRO 659(I)/2007 dated June 03, 2007. However, the subject goods are correctly classifiable under PCT 3208.2090 attracting customs duty at the rate of 20 percent, sales tax 17 percent, additional sales tax at 3 percent and income tax 6 percent, the sources added.
Thus, by way of mis-declaration of classification, M/s Modern Corporation evaded/short paid Rs 71,596. Therefore, the importer, has violated the provisions of Section 32 (1) (2) & (3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 34 of the Sales Tax Act 1990 and Section 148 of Income Tax Ordinance 2001 punishable under clauses (1), and 14 of Section 156(1) of the Customs Act 1969, Section 33(5) of the Sales Tax Act, 1990 and Section 148 & 182 of Income Tax Ordinance, 2001 and section 7A 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 Modern Corporation for explaining and clarifying as to on what basis they have avoided/ evaded the leviable 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.
In view of the aforesaid M/s Modern Corporation are held to have intentionally and wilfully caused loss to the government exchequer amounting to Rs 71,596. The contravention report is forwarded for initiation of adjudication proceedings in the case.
