KARACHI: The Collectorate of Customs Adjudication-II has issued an Order-in-Original against M/s RBA Leather Scrap and Chemical Company for availing illegal benefits of concessionary rates of sales tax and income tax under SRO 1125(I)/2011 dated 31.12.2011.
According to details, the Directorate of Post Clearance Audit, Customs Karachi, while scrutinizing the data of importers relating to claiming of admissible/inadmissible concessions in taxes, found that the importer had illegally availed the benefits of concessionary rates under aforesaid SRO.
In the ONO, the Deputy Collector Customs Adjudication-II Muhammad Aftab stated that the importer M/s RBA Leather Scrap and Chemical Company held to have intentionally and willfully caused loss to the government exchequer amounting to Rs 39,296 by illegally availing benefits of SRO 1125(I)/2011 dated 31.12.2011 which was evidently not admissible to them at the time of imports.
The ONO further states that the show cause notice was issued to the importer whereby hearing was fixed for 4.6.2015. However, no one appeared for hearing on behalf of the importer. Again, hearing notice was issued to the importer for 12.6.2015 whereby the importer again failed to appear in the case.
Keeping in view the principal of natural justice, final hearing notice was issued to the importer for 19.6.2015 whereby the copy of the same was displayed on the Notice Board of the Customs House Karachi under Section 218 of the Customs Act, 1969. However despite repeated efforts, no one turn up on behalf of importer.
In the ONO, the Deputy Collector directed the importer to pay the evaded revenue of Rs 39,296. However, in addition, a penalty of Rs 25000 is also imposed for violation of Provision of Section 32(1)(2) & (3A) of the Customs Act, 1969, Section 3(1), section 3,6,&7 read with section 34 of Sales Tax Act 1990 and Income Tax Ordinance 2001 punishable under Section 33 (5) and section 7-A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Act Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importer) and punishable under relevant provision of Income Tax Ordinance 2001 under clauses (14) and (14-A) of Section 156(1) of Customs Act, 1969 on the exporter.
