KARACHI: The Customs’ Collectorate of Adjudication-II has served a show cause notice on M/s Royal Roller Flour Mills for evading taxes and duties to the tune of Rs 5.33 million on import of Silos classifiable under PCT Heading 9406.0030.
As per details, the importer M/s Royal Roller Flour Mills Pvt Ltd had imported Silos from the United States of America (USA) and availed concession of 8th Schedule (sales tax) and paid reduced rates of sales tax at 5 percent on the import of “Grain Storage Silos with all standard accessories” under PCT Heading 9406.0030.
The 8th Schedule (sales tax) extends benefits of reduced rate of sales tax to “machinery and equipment” for development of grain handling and storage facilities only. Whereas the Silos are for storage purposes and do not qualifies the definition of machinery and equipments, sources added.
Therefore, the sources said that the benefits of reduced rate of sales tax was not admissible in this case and was chargeable to sales tax at 17 percent.
In this regard, a show cause notice has been served upon the importer asking them to appear in persons before the Collector Adjudication-II or depute its counsel to defend the case.
