KARACHI: Directorate of Customs’ Post Clearance Audit (PCA) has detected evasion of duties/taxes of 3.26 million by M/s Sofia Paint, it is learnt.
The official sources told Customs Today that M/s Sofia Paint imported two consignment of paint chemicals under PCT Heading 3208.9090 and cleared the same from Port Qasim, Karachi vide GDs No KS-50566 on August 7, 2016, by paying customs duty at 12.5 percent after claiming benefit of SRO 659/2007.
However, the subject goods are correctly classifiable under PCT 3208.2090 attracting customs duty at 20 percent and income tax at 9 percent. Thus, by way of mis-declaration of classification, M/s Sofia Paint 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 Paint 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.
