KARACHI: The Directorate of Customs’ Post Clearance Audit (PCA) has detected evasion of duties and taxes of Rs 3.34 million by M/s Areeba Wooden Works, it is learnt.
The official sources told Customs Today, that M/s Areeba Wooden Works imported a consignment of different kinds of woods under the PCT Heading 2988.5847 and got it cleared from the Port Qasim Karachi vide GDs on August 12, 2017 by paying customs duty at 10 percent after claiming the benefit of SRO 677/2007.
However, the subject scrape are correctly classifiable under the PCT 2985.5899 attracting customs duty (CD) at 12.50 percent and income tax at 8 percent. Thus, by way of mis-declaration of classification, M/s Areeba Wooden Works evaded/short-paid Rs 3.34 million.
So the importer has violated the provisions of Section 32 (1) (2) & (4A) of the Customs Act-1969, Section 8, 9 & 12 read with Section 36 of the Sales Tax Act-1990 and Section 150 of Income Tax Ordinance 2001 punishable under clauses (7) and 16 of Section 158(1) of the Customs Act 1969, Section 36(9) of the Sales Tax Act-1990 and Section 140 & 179 of Income Tax Ordinance 2001 and Section 9-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 Areeba Wooden Works for explaining and clarifying as to on what basis they have avoided/evaded the taxable 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.
