KARACHI: Directorate of Customs’ Post Clearance Audit (PCA) has detected duties/tax evasion of Rs 3.26 million allegedly by M/s Sofia Paints, it is learnt.
The official sources told Customs Today that M/s Sofia Paints imported two consignment of paint chemicals under PCT Heading 3208.9090 and cleared the same from Port Qasim, Karachi vide GD No. KS-50566 dated 7 August.2016, paying customs duty 12.5 percent after claiming benefit of SRO 659/2007. However, the subject goods are correctly classifiable under PCT 3208.2090 attracting customs duty 20 percent and income tax 9 percent.
Thus, by way of mis-declaration of classification, M/s Sofia Paints evaded/short paid 3.26 million. 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 Sofia Paints for explaining and clarifying as to on what basis they have avoided/ evaded the livable 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.
