KARACHI: The Directorate General of Post Clearance Audit PCA has issued a contravention report against M/s Mark Industries for allegedly evading duty/taxes to the tune of Rs 714,700 on the import of highlighters, it is learnt.
As per details, the company imported two consignments of highlighters under PCT Heading 9608.2000 by claiming incorrect/ inadmissible exemption of Serial 97 of the 6th Schedule of Sales Tax Act, 1990 paying sales tax and additional sales tax at the rate of zero percent.
Thus by way of mis-declaration of classification, it has evaded/short paid Rs 714,700 and violated the provision of Section 32(1)(2)&(3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 34 of the Sales Tax Act, 1990 and Section 148 of Income Tax Ordinance 2001 punishable under clauses (1), and 14 of Section 156(1) of the Customs Act, 1969, Section 33(5) of the Sales Tax Act, 1990 and Section 148 and 182 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, they revealed
Accordingly, an audit observation was issued to M/s Mark Industries for explaining and clarifying as to on what basis it has avoided/evaded the leviable taxes, they said, adding the the importer, however, failed to come up with any tangible evidence and explanation and was also unable to refute the charges levelled by the department.
Therefore, the PCA has forwarded a contravention report to the Customs Adjudication for further proceedings in the case.
