KARACHI: The Customs Post Clearance Audit (PCA) Karachi has issued four contravention reports involving Rs 31.204 million against Fatima Fertilizer Company Limited, Lahore for taking illegal benefits under SRO575(I)/2006.
The scrutiny of import data revealed that the company imported consignments of stainless steel piping, cables, scaffolding, ladder, tube etc through Model Customs Collectorate Appraisement-East, Karachi by availing undue benefits of inadmissible exemption of custom duty as in excess of 5 percent under Sr No 20 and 21 of SRO 575(I)/2006 dated 05.06.2006.
Therefore, an amount of Rs 31.204 million has been short paid/evaded by the importers on account of custom duty, withholding tax and sales tax.
Hence, the importer M/s Fatima Fertilizer Company Ltd, Lahore has violated the provisions of Section 32(1)(2) and (3A) of the Customs Act, 1969, punishable under clauses (1), (14) of section 156(1) of the Customs Act, 1969 read with section 33 of the Sales Tax Act 1990, chapter X of the Sales Tax Special procedure Rules 2007 (special procedures for payment of sales tax by the importers ) and section 148 of Income Tax Ordinance 2001.
When contacted, Director PCA Karachi told Customs Today that the contravention reports had been forwarded herewith for initiation of adjudication proceeding.
