KARACHI: The Directorate of Post Clearance Audit (PCA) has detected tax evasion to the tune of Rs 2.8 million by M/s International Fancy Light through availing undue benefits of customs concessions on import of electronic items.
The PCA on scrutiny/audit of import data, found that the company imported ‘LED lights, LED strip light in rolls for solar use, which are without converter/driver of the corresponding quantity of LED lights under PCT heading 9405.1090 as declared on invoice and claimed certain exemptions.
The exemptions are allowed to items with dedicated use of renewable source of energy, which includes solar and wind power resources only. The examination staff at the time of examination did not confirm that LED Lights are for solar use as declared in the invoice. The bill of lading available scanned in the system also describe the description as “lighting fixture and fittings parts”.
As the LED lights are not for solar use as declared these are not covered under the claimed notification. Rather these are operative at 240 volts used in Pakistan produced by hydra / fuel based power. It is an undeniable proof that the imported goods are not meant for work/operate with the renewable energy sources like solar energy or wind energy. Therefore, the concessions under the claimed notifications are not available to the subject imports.
Therefore, M/s International Fancy Light, Lahore, has been instructed to pay evaded amount of Rs2.8 million.
