KARACHI: The Collectorate of Customs Adjudication-I is preparing two show cause notices against M/s Descon Engineering Limited for the tax evasion of Rs 3,499,249 by availing undue benefits under the SRO 575(I)/2006.
The Directorate of Post Clearance Audit (PCA) Karachi has detected two cases of tax evasion by M/s Descon Engineering Ltd i.e. Rs 2,419,158 and Rs 1,080,088.
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The scrutiny of the import data revealed that importer had imported consignment of machinery parts and spares and got them cleared from Model Customs Collectorate-Appraisement (West) availing inadmissible exemptions of customs duty as in excess of 5 percent under Sr No 21 of SRO 575(I)/2006 dated 6.5.2006 while the imported goods did not fall within the ambit of plant, machinery, equipment spares and accessories required for manufacturer or production of any good.
The evasion of customs duty/tax on account of availing inadmissible benefit of Sr.21 of SRO 575(I)/2006 dated 5.6.2006. Therefore, violated the provision of Section 32(1)(2) and (3A) of the customs act, 1969 punishable under clauses 1 and 14 of Section 156(1) of the customs act, 1969 read with Section 33 of the sales tax act, 1990, chapter X of the sales tax special procedure Rules 2007 (special procedures for payment of sales tax by the importers) and Section 148 of Income Tax Ordinance.
The sources said that the Collectorate of Adjudication-I has almost prepared the show cause notices against the importer and the adjudication proceeding against M/s Descon Engineering Limited.
