KARACHI: Directorate General of Post Clearance Audit (PCA) has detected evasion of duties/taxes of Rs 592,635 by MH Traders by claiming illegal benefits of SRO 659(I)/2007, it is learnt. The case was detected by Assistant Director PCA Sajid Ali Baloch while scrutinizing import data of spray paint.
According to sources, M/s MH Traders imported five consignments of Aerosol Spray Paints under PCT Heading 3208.9090 paying customs duty @ 12.5% after claiming benefit of SRO 659(I)/2007 dated 03.06.2007. However, the subject goods are correctly classifiable under PCT 3208.2090 attracting customs duty @ 20% sales tax @ 17%, additional sales tax @3 % and income tax @ 6%.
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Thus, by way of mis-declaration of classification, M/s M-H Traders evaded/short Rs 592,635. Accordingly, an audit observation was issued to M/s M-H Traders for explaining and clarifying as to on what basis they have avoided/ evaded the leviable 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. The Contravention report is forwarded herewith for initiation of adjudication proceedings in the case.
