KARACHI: Collector of Customs (Adjudication-I) Muhammad Asif Marghoob Siddiqui has ordered huge amount of duty and taxes to be recovered from gold importing entities and also imposed heavy penalty on them.
According to details, the Orderin-Originals for recovery of duty and taxes amounting to more than Rs6.6 billion were issued during the month of February to April, 2018.
Sources in Karachi Customs House informed that a total number of 58 cases were forwarded for adjudication against (1) M/s Makkah Enterprises, Karachi, (ii) M/s Rubab Corporation, Karachi & (iii) M/s Saanil Impex, Karachi by the Collector of Customs, MCC-Preventive, Karachi.
In these cases, a huge quantity of 3,148kg of gold was allowed to be imported without payment of duty and taxes and under the provision of SR0-266(1)/2001 dated 07-05-2001, the importers had to re-export the gold jewellery of the contracted quantity to the buyer within 180 days from the date of import. However, as per to record the importers failed to comply with the provisions of Para5(2) of SR0-266(1)/2001 and did not export the gold jewellery.
The importer/exporter of the gold were; therefore, alleged for violation the provisions of Section 16, 19, 32(1) & (2) and 32(A) of the Customs Act, 1969, read with special classification provision of chapter 9929 of the Pakistan Customs Tariff-2013-2014 & SR0-266(1)/2001 dated 07-05-2001, read with Section 3(I) of the Import & Export (Control) Act, 1950, further read with Section 3, 6, 33 & 36 of the Sales Tax Act, 1990 and also read with Section 148 of the Income Tax Ordinance, 2001, punishable under Clauses (9), (10A), (14), (14A) & (77) of Section 156 (I) of the Customs Act, 1969, read with Section 3(3) of the Imports & Exports (Control) Act, 1950 and relevant provision of allied laws.
After conducting many hearings, the adjudicating authority i.e. Collector of Customs (Adjudication-I), Custom House, Karachi ordered that the above-mentioned gold importers/exporters are guilty and charges levelled against them are established. It is believed that the imported quantity of gold without payment of duty and taxes was sold in the market as no record pertaining to the export of the same in terms of SR0-266(1)/2001 was produced by the importers.
Therefore, M/s Makkah Enterprises, Karachi, M/s Rubab Corporation, Karachi and M/s Saani Impex, Karachi were ordered to pay duty and taxes amounting to Rs2,449 million, Rs2,749 million and Rs1,350 million respectively into the government treasury. A personal penalty in millions of rupees was also imposed on these importers/exporters of gold.
Similarly, an amount of Rs68.45 million was also adjudged against M/s IK (Pvt) Limited, Karachi (importer of silver) and M/s Karman Enterprises & others (importer of gold). Cases in respect of the two importing entities were forwarded by the Directorate General of Intelligence & Investigations (Customs)-FBR, Regional office, Karachi.