KARACHI: The Directorate of Post Clearance Audit (PCA) has issued three contravention reports against importer M/s BM Technologies for evasion of duty/taxes to the tune of around Rs1 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 CD @0%. The subject goods, however, are correctly classifiable under PCT heading 3824.9099 where customs 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 of 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 Rs725,061, Rs 92,177 and Rs87,866.
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 7A 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 and willfully caused loss to the Government exchequer amounting to Rs725,061, Rs192,177 and Rs87,866/.
The contravention reports have been forwarded herewith for initiation of adjudication proceedings in the case.