KARACHI: Directorate General, Customs Post Clearance Audit, Karachi Directorate, has served a contravention report upon M/s Pak Telecom Mobile for evasion of taxes/duties to the tune of Rs 3,970,369.
The case was detected by the PCA’s Assistant Director Sajid Ali Baloch while the contravention report has also been forwarded to the Collectorate of Adjudication-I for further perusal.
During the scrutiny of import data of ‘telecommunication equipment & batteries for telephone exchanges’ falling under PCT heading 8507.2010, it has been observed that certain Mobile Communication Companies imported multipurpose Batteries and power equipment, evidently not for the use in telephone exchanges under this PCT Heading, while such batteries are correctly classifiable under PCT heading 8507.2090 chargeable to CD @ 20 %.
Thus by misdeclaring these multi-purpose batteries under PCT heading 8507.2010 they have made a deliberate and willful attempt to evade duty/taxes.
M/s Pak Telecom Mobile , Islamabad imported ‘Telecommunication Equipments, Power Support Systems, VRLA Batteries, Rechargeable Batteries, Battery Rex with accessories etc’ by misdeclaring them in the PCT heading 8507.2010 (which is a specified heading for Lead Acid Batteries used in Telephone Exchanges) instead of declaring them under their correct PCT heading 8507.2090 chargeable to CD @ 20 %.
Thus, by way of mis-declaration of classification, M/s. Pak Telecom Mobile Ltd, Islamabad with the active connivance of their Clearing Agents M/s Eastern Freighter Services evaded/short paid Rs 3,970,369/.
Accordingly, an Audit Observation of even number dated 09.08.2016 was issued to M/s. Pak Telecom Mobile Ltd, Islamabad, for explaining and clarifying as to on what basis they have avoided / evaded the leviable taxes. The importer, however, failed to come up with any tangible evidence and explanation and was also unable to refute the charges leveled by the Department.
Contravention report is forwarded to the Collector, Collectorate of Customs Adjudication-I, for initiating adjudication proceedings in the case.
