KARACHI: The Directorate of Customs’ Post Clearance Audit (PCA) has detected an evasion of duties/taxes of Rs2.34million by M/s Reliance Garments, it is learnt.
The official sources told the reporter that M/s Reliance Garments imported a consignment of different fabrics under the PCT Heading 2909.6789 and got cleared the same from the Port Qasim Karachi vide GDs on September 2, 2016 by paying customs duty at 8.25 percent after claiming a benefit of SRO 564/2007.
However the subject goods are correctly classifiable under the PCT 2905.6758 attracting customs duty at 14.25 percent and income tax at three percent. Thus, by way of mis-declaration of classification, M/s Reliance Garments evaded/short-paid Rs2.34million.
So the importer has violated the provisions of Section 32 (1) (2) & (3A) of the Customs Act-1969, Section 3, 6 & 9 read with Section 36 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 & 176 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.
Accordingly, an audit observation was issued to M/s Reliance Garments for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and 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.
