KARACHI: Directorate of Customs’ Post Clearance Audit has detected duties and tax evasion of Rs 4.56 million allegedly by M/s SG Enterprises, it is learnt.
The official sources told Customs Today that M/s SG enterprises imported four consignments of heavy duty generator parts and others machinery parts under PCT Heading 5406.2409 and cleared PICT Karachi vide GDs No LM-63589 on January 16, 2016, by paying customs duty at 13 percent after claiming benefit of SRO 689/2007.
However, the subject goods are correctly classifiable under PCT 5607.2584 attracting customs duty at 20 percent and income tax at 10 percent. Thus, by way of mis-declaration of classification, M/s S G enterprises evaded/short paid Rs 4.56 million.
Therefore, the importer, has violated the provisions of Section 34 (1) (2) & (3A) of the Customs Act, 1969, Section 2, 4 & 9 read with Section 42 of the Sales Tax Act 1990 and Section 146 of Income Tax Ordinance 2001 punishable under clauses (1), and 19 of Section 158(1) of the Customs Act 1969, Section 39(5) of the Sales Tax Act 1990 and Section 154 & 162 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 S G Enterprises 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.
Earlier Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 2.28 million allegedly by M/s Hakeem Ali Associates.
