KARACHI: The Customs Department has penalised a cable company over misdeclaration.
Collector Adjudication Dr Shazia Ikram imposed the penalty of Rs0.8 million M/s Atta Cables Pvt Ltd for evading government revenue by misdeclaring the description and classification of imported goods.
The Directorate of Post Clearance Audit Karachi, observed during scrutiny of import data of M/s Atta Cables (Pvt) Ltd that they imported six consignments of Electrolytic Copper Rods (8MM Diameter) and cleared the same from Model Customs Collectorate of Appraisement East by wilfully and knowingly misdeclaring the goods under PCT Heading 7407.1020 chargeable to Customs Duty 5.0 percent, Sales Tax 17 percent and Income tax 5.0 percent.
However, copper rods in coils are correctly classifiable under PCT heading 7408.1100 and are chargeable to Customs Duty 10 percent, Sales Tax 17 percent and Income Tax 5.0 percent. Therefore, the imported evaded government revenue of Rs8.734 million.
Dr. Shazia Ikram noed that post clearance audit scrutiny of GDs revealed that the imported had deliberately mis-declared the PCT of copper wires in order to evade leviable duty and taxes.
After detailed deliberation of the case, Collector Adjudication found the charges established and ordered the importer M/s Atta Cables to pay Rs8.734 million into the government treasury.