KARACHI: The Collectorate of Customs Adjudication-II has issued a show-cause notice to M/s BM Technologies for evasion of duty/taxes to the tune of Rs 1 million on import of Sulphur Bentonite.
According to sources, M/s BM Technologies imported consignments of ‘Sulphur Bentonite’ under PCT Heading 3105.9000 and cleared the same with active connivance of their clearing agent M/s Rabia Shipping Agency through Customs Appraisement (East), paying customs duty @ 0%. The subject goods, however, are correctly classified under PCT heading 3824.9099 where Custom Duty is leviable at the rate of 10%. The mis-declaration of classification is also confirmed by the Public Notice No. 16/2015 (East) dated 03.10.2015, wherein, the dispute of Granular Straight Sulphur Fertilizer comprising Sulphur and Bentonite mixture has been resolved by classifying the subject description under PCT heading 3824.9099.
Thus, M/s BM Technologies by way of mis-declaration of PCT deprived the national exchequer of its legitimate revenue of duty and taxes to the tune of Rs 725,061, Rs 192,177 and Rs 87,866. Therefore, the Importer, has violated the provisions of Section 32 (1) (2) & (3A) of the Customs Act, 1969, Section 3, 6 & 7 read with Section 34 of the Sales Tax Act 1990 and Section 148 of Income Tax Ordinance 2001 punishable under clauses (1), and 14 of Section 156(1) of the Customs Act 1969, Section 33(5) of the sales tax Act, 1990 and Section 148 & 182 of Income Tax Ordinance 2001 and section 7-A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.
Accordingly, three separate audit observations were issued to the said importer. The importer, however, failed to come up with any tangible evidence and explanation and was also unable to refute the charges leveled by the department. In view of the aforesaid M/s BM Technologies Faisalabad, are held to have intentionally & willfully caused loss to the Government exchequer amounting to Rs725,061, Rs192,177 and Rs87,866/.
The Collectorate of Customs Adjudication-II after thoroughly studying the contravention reports have issued show-cause notice to appear in person or depute its counsel to adjudicate the case.