KARACHI: The Customs Directorate of Post Clearance Audit (PCA) has detected third case of tax evasion against the importer M/s Karachi International Containers Terminal (KICT) Limited, while the contravention report has been forwarded to Customs Adjudication for legal proceedings in this regard.
According to details, the PCA during scrutiny of post-clearance data found that the importer M/s KICT on July 16,2014 imported cable reel, six sets of control box of 5,800mm diameter, 2,550 metres of high-voltage cable 11KV/3 core, six HV transformers of 1,250KVA, six HV transformer of 250KVA, six HV switch gear of 11KV/630A, platform, walkways and handrails through Model Customs Collectorate Appraisement-West and evaded duty/taxes, including customs duty of Rs 39.81 million, sales tax of Rs 7.96 million and withholding tax of Rs 0.26 million, totalling Rs 50.4 million.
During scrutiny, the PCA further found that the importer M/s KICT Limited was allegedly involved in evasion of customs duty, sales tax and WHT by claiming inadmissible benefit of SRO 659(I)/2007 against mis-declared/incorrect PCT heading. Therefore, it violated the provisions of Section 32(1) (2) and 3A of the Customs Act, 1969, Section 3(1), Section 3, 6 and 7 read with Section 34 of the Sales Tax Act, 1990 and Income Tax Ordinance, 2001 punishable under Clauses (1), (9) and 14 of Section 156(1) of the Customs Act, 1969; punishable under Section 33(5) and Section 7A of the Sales Tax Act, 1990 read with Chapter X of the Sales Tax Act, 1990 Special procedure Rules 2007 (special procedures) and punishable under relevant provisions of Income Tax Ordinance 2001.
It is pertinent to mention here that the Directorate of PCA has already established two tax evasion cases against the importer KICT Limited in which the department detected allegedly duty/tax evasion of Rs 85.18 million and Rs 238.01 million, respectively.