KARACHI: Stopping the revenue leakage, the Directorate of Post Clearance Audit (PCA), customs has detected that Rs 540,000 was evaded by M/s Ahsan Feed Mills, Gujranwala on import of silos classifiable under PCT Heading 9406.0030.
Sources said that the importer M/s Ahsan Feed Mills availed concession of 8th Schedule (sales tax) and paid reduced rates of sales tax at 5 percent on the import of “Grain Storage Silos with all standard accessories.”
The importer M/s Ahsan Feed Mills had imported silos from China with Goods Declaration (GD) No. KPPI-HC-44740 dated 4-3-2015 and GD No. KPPI-HC-44750 dated 4-3-2015, sources added.
The 8th Schedule (Sales Tax) extends benefits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the Silos are for storage purposes and do not qualifies the definition of machinery and equipments, sources added.
Therefore, the sources said that the benefits of reduced rate of sales tax was not admissible in this case and was chargeable to Sales Tax at 17 percent.
After detection of the contravention, the Directorate of PCA has forwarded the report to the respective collectorates and the Customs Adjudication for initiating adjudication proceedings and recovery thereof, the sources further informed.
