KARACHI: The Collectorate of Customs Adjudication-II has issued an Order-in-Original (ONO) against M/s Shan Traders for evading duty/taxes worth Rs 1.1 million by taking undue benefits under SRO 1125(I)/2011 dated December 31, 2011.
According to the details, the Directorate of Post Clearance Audit, Customs Karachi, while scrutinizing data of importers, found that the importer had illegally availed the benefits of concessionary rates under aforesaid SRO on importing acrylic bulky bright yarn
In the ONO, Additional Collector Customs Adjudication-II Syed Mahmood Hassan stated that the importer M/s Shan Traders Gujranwala had intentionally caused loss to the government exchequer by availing the benefits of SRO 1125(I)/2011 which was evidently not admissible to them at the time of imports.
The ONO further states that the show-cause notice was issued to the importer whereby hearing was fixed for August 4, 2015, August 13, 2015 and September 2, 2015.
In the ONO, the deputy collector Adjudication-II directed the importer to pay the evaded revenue of Rs 1.1 million. However, in addition, a fine of Rs 200,000 is also imposed for violation of provision 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 Sales Tax Act 1990 and Income Tax Ordinance 2001 punishable under Section 33 (5) and section 7A of the Sales Tax Act 1990 read with chapter X of the Sales Tax Act Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importer) and punishable under relevant provision of Income Tax Ordinance 2001 under clauses (14) and (14A) of Section 156(1) of Customs Act, 1969 on the exporter.