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Islamabad Adjudication directs MCC to recover evaded amount of duties and taxes

Islamabad Adjudication directs MCC to recover evaded amount of duties and taxes

ISLAMABAD: Deputy Collector Customs Adjudication Islamabad Dr. Wajid Ali has passed Order-In-Original in contravention case No. 27/2017 and ordered the Model Customs Collectorate Islamabad for recovery of evaded amount of duties and taxes of Rs2.25million with penalty of Rs50000 from M/s H&H Traders, Shop No.2, Hafiz Market, Peer Wadhaee Bus Stand, Rawalpindi.

It has been reported that the Directorate General Audit (Customs & Petroleum) Lahore conducted an audit of the imports carried out through  Islamabad Dry Port and raised an audit observation vide DP No. 1427 and AO No. 43 (2013-2014). The Directorate General Valuation Karachi has fixed the value of imported socks @ $1.66/dozen vide Valuation Ruling No: 309. During the audit of the record of the DC, Customs, Imports, Dry Port, Islamabad, for the FY 2012-13, it has been observed that 7,866 dozens of socks imported by M/s H&H Traders under GD NO.657 dated 28.08.2012 have been assessed and released at a rate lower than fixed by the DG, Valuation, Karachi.

This resulted in short-realization of revenue amounting to Rs2.3million. Accordingly, the demand notice was raised vide C. No: Si/Misc/Audit/DRRA/139/2013/169 dated 09.01.2017, but the importer failed to pay the same. Hence the contravention report under the provision of section 32(3A) of the Customs Act-1969, Punishable under section 156(14) of the Customs Act-1969, is constituted. Accordingly, a show cause notice was issued to the respondents under Section 180 of the Customs Act-1969.

On scheduled date of hearing, no one appeared from the respondents side despite having been granted sufficient opportunities of hearing, no one appeared on behalf of the respondents for hearing on any scheduled date, nor any written reply to the instant show cause notice was received in this office, which shows that the respondents have nothing to offer in their defense, or they are not interested in their defense.

The case cannot be kept pending for indefinite time period due to lawful limitations therefore collectorate is left with no option but to decide the instant case ex parte on the basis of facts and evidences available on record.

The charges leveled in the show cause notice of the instant case stand established. Therefore I order the recovery of evaded amount of duty/taxes of Rs2.3million in terms of Section 202 of the Customs Act-1969 read with Customs Rules 2001 notified vide SRO450(I)/2001 dated 18.06.2001 and also impose a penalty of Rs.50000 in terms of section 156(1) (14) of Customs Act-1969.