KARACHI: The Directorate of Customs Post Clearance Audit on Monday detected duties and tax evasion of Rs 7.25 million by M/s Defence Fabrics International it is learnt here.
Sources told Customs Today that M/s Defense Fabrics International imported a consignment of cloth printing, fabric folding, over lock machines and printed chemicals its parts and got it cleared from the PICT Karachi vide GDs on September 12, 2017 by paying customs duty very low at 10 percent after claiming the benefit of the SRO 572/2007.
However, the subject items were correctly classifiable under the PCT 2547.2908 attracting customs duty at 14 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs7.25 million. The goods were cleared by Appraiser Shamsul Aiwan..
Sources said that the importer violated the provisions of Section 36 (3,5-A) of the Customs Act-1969, Section 65 read with Section 25 of the Sales Tax Act-1990 and Section 14 of Income Tax Ordinance 2001 punishable under clauses (54) and 91 of Section 34(9) of the Customs Act-1969, Section 66 of the Sales Tax Act-1990 and Section 24 & 47 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.
