KARACHI: The Post Clearance Audit (PCA) has detected evasion of duty and taxes amounting to Rs 506,750 by M/s Zayyan Trading Corporation on import of aerosol spray paints, it is learnt.
The official sources told Customs Today that M/S Zayyan Trading imported seven consignments of aerosol spray paints under PCT Heading 3208.9090 paying 12.5 percent custom duty after claiming benefit of SRO 659(I)/2007 dated June 03, 2007. However, the subject goods are correctly classifiable under PCT 3208.2090 attracting 20 percent customs duty, 17 percent sales tax, 3 percent additional sales tax and 6 percent income tax.
Thus, by way of mis-declaration of classification, the company allegedly evaded/short paid Rs 506,750. Therefore, the importer violated the provisions of Section 32 (1) (2) and (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 Zayyan Trading Corporation for explaining and clarifying as to on what basis it has 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.
Therefore, the PCA has sent contravention report for initiation of adjudication proceedings in the case.
