KARACHI: The Directorate of Customs Post Clearance Audit (PCA) has detected duties and tax evasion of Rs 11.42 million allegedly by M/s Shah Suleman Garments, it is learnt.
Official sources told Customs Today that M/s Shah Suleman Garments imported a consignment of different kinds of silk and colour chemicals under the PCT Heading 2254.4505 and got it cleared from Port Qasim Karachi vide GDs on October 29, 2017 by paying customs duty at 6 percent after claiming a benefit of SRO 566/2007 by the hand of Examiner Suhail Ahmed.
However, the subject item is correctly classifiable under the PCT 2248.3870 attracting customs duty at 10 percent and income tax at 12 percent. Thus, by way of mis-declaration of classification, M/s Shah Suleman Garments evaded/ short-paid Rs 11.42 million.
So the importer has violated the provisions of Section 33 (9) & (2B) of the Customs Act-1969, Section 8, 9 read with Section 56 of the Sales Tax Act-1990 and Section 139 of Income Tax Ordinance 2001 punishable under clauses (2) and 48 of Section 158(6) of the Customs Act-1969, Section 30 (4) of the Sales Tax Act-1990 and Section 138 & 147 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 Shah Suleman Garments for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and taxes.
