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Home Breaking News

Violation of SRO 565(I)/2006: Customs issues ONO against M/s Siddiq Sons Denim Mills

bySohail Rab
02/02/2015
in Breaking News, Karachi, Latest News
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KARACHI: The Collectorate of Customs Adjudication-I has issued Order-in-Original (ONO) against the importer M/s Siddiq Sons Denim Mills in its alleged involvement in violation of SRO 565(I)/2006 in import of bullet proof jackets.

According to details, the Model Customs Collectorate-MCC Appraisement (West) has framed the case against the importer M/s Siddiq Sons Denim Mills for availing undue benefit of SRO 565(I)/2006 in import of the consignments of bullet proof jackets involving duty/taxes evasion amounting to Rs1773000.

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In the contravention report, the departmental representative of MCC-Appraisement (West) leveled charges against the importer M/s Siddiq Sons Denim Mills that the importer willfully took exemption of SRO 565(I)/2006 in import of bullet proof jackets at 5per cent Custom Duty (CD) whereas, according to the SRO 565(I)/2006, the importer should have cleared the consignments of bullet proof jackets at 10per cent Custom Duty (CD).

The detecting agency i.e. MCC-Appraisement (West) stated that the importer thus violated the Sections 32(1), 32(2), 32(A) and 79(1) of the Customs Act, 1969 and Section 33 of Sales Tax Act, 1990 and Section 148 of the Income Tax Ordinance-2001 and punishable under Clause 14, 14 A and 45 of the Section 156(1) of the Customs Act, 1969; Clause 11(C)  of the Section 33 of Sales Tax Act, 1990 and Section 148 of the Income Tax Ordinance, 2001.

Later, the Collectorate of Customs Adjudication-I served show-cause notice against the importer M/s Siddiq Sons Denim Mills and called upon to clear its stance over the said tax evasion case.

After several hearings, the Collector of Customs Adjudication-I stated that the charges level against the importer M/s Siddiq Sons Denim Mills are stand established, as it was allegedly involved in violation of SRO 565(I)/2006 in which it imported the consignments of bullet proof jackets at 5per cent Custom Duty which was implemented only on raw material while those consignments should have cleared at 10per cent Customs Duty, as imported consignments consisted of furnished/intermediate goods which fell under Customs Duty at 10per cent.

The Order-in Original (ONO) against the importer M/s Siddiq Sons Denim Mills stated that the importer deliberately tried to evade duty/taxes amounting to Rs1773000 on importation of bullet proof jackets while offending values was stand at Rs38million.

 

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