KARACHI: Collectorate of Customs Adjudication-I has issued show-cause notice against M/s Umer Farms (Private) Limited for its alleged involvement in tax evasion of Rs 3.301 million on import of “Australian Holstein Friesian Heifers (joined) Cows” through availing the concessionary rate of income tax, which is only available to zero rating regime of sales tax.
The Collector of the Collectorate of Customs Adjudication-I Abdul Basit Chaudhry has fixed the hearing date of 24-May-2016 into the case.
According to the details, it has been reported by the Directorate of Post Clearance Audit (PCA), Karachi vide its contravention report that during the scrutiny of import data it was found that the importer M/s Umer Farms has imported “Australian Holstein Frisian Heifers (joined) Cows” vide GD No KAPR-HC-63526 dated December 20, 2011 under PCT Heading 0102.1030 through Appraisement-West and had illegally availed the concessionary rate of income tax, which is only available to zero rating regime of sales tax.
The report stated that the importer claimed exemption under Schedule VI of the Sales Tax Act, 1990. Thus, the import is not covered under zero rating regime of sales tax.
Therefore, consequently income tax at standard rate of 5 percent is leviable. As such importer violated the provisions of Section 32(1) (2) and 3A of the Customs Act, 1969, Section 3(1), Income Tax Ordinance 2001 punishable under clause (1), (9) and 14 of Section 156(1) of the Customs Act, 1969 and punishable under relevant provisions of Income Tax Ordinance 2001, the notice stated.
Whereas, an amount of Rs 3,301,415 has been short paid/evaded on account of income tax, therefore the importer M/s Umer Farms (Pvt) Limited has violated the provisions of Sections 32(1) (2) and 3A of the Customs Act, 1969, Section 3(1), Income Tax Ordinance 2001 punishable under clause (1), (9) and 14 of Section 156(1) of the Customs Act, 1969 and the relevant provisions of Income Tax Ordinance, 2001.
