KARACHI: Customs Collectorate of Adjudication-I has issued Order-in Original (ONO) on April, 9 against M/s Gujranwala Electric Power Co. Ltd and clearing agent Daco International Transport (Pvt) Limited on mis-declaration in a consignment of 16 145 KV coupling capacitors voltage transformers with steel structure imported from Turkey.
The details revealed that M/s Gujranwala Electric Power Co Ltd imported a consignment of 145 KV coupling capacitors voltage transformers with steel structure from Turkey which arrived at Karachi Airport vide IGM No.1748 dated 25-02-2014, Index No.28 and filed Goods Declaration (GD) vide Machine No. KPAF-HC-31099 dated 4-03-2014, invoice submitted along with the GD showing the value of said goods as $ 72,136. Whereas, during the course of physical examination of the consignment the shed staff has reported that the shipper/exporter M/s Daewoo International Corporation, Turkey, at the time of shipment of goods to Karachi had delivered a copy of invoice pertaining to the aforesaid goods to the airline who delivered the same to Pakistan Customs through their cargo handling agent which showed the value of aforementioned goods as $ 173,158 (CFR) instead of value $ 72,136 declared by the importer on invoice as well on GD as CFR. The declared CFR value on GD was less than 140 per cent as compared to the actual CFR value of imported goods.
According to the contravention report filed by MCC-Preventive, it was evident that the importer M/s Gujranwala Electric Power Co Ltd, knowingly and deliberately mis-declared the value of imported goods on GD and also presented fabricated/tampered invoice in support of their declaration on GD which resulted in short realization of legitimate government revenue to the tune of Rs 9,300,124 which includes customs duty of Rs 3,632,861; sales tax of Rs 3,705,518; additional sales tax of Rs 653,915; and income tax of Rs 1,307,830.
Since, the declaration made in GD in respect of value was false and invoice submitted with GD before customs assessing staff was fabricated to evade duty and taxes. The importer M/s Gujranwala Electric Power Co Ltd have, therefore, committed an offence under Section 148 of Income Tax Ordinance, 2001 punishable under clause (14) of section 156 (1) of Customs Act, 1969.
And whereas, M/s Gujranwala Electric Power Co Ltd has committed offence and thus contravened the provisions referred above, therefore, in the light of above reported facts, M/s Gujranwala Electric Power Co Ltd was called upon to show-cause as why the amount of duty and taxes may not be recovered and penal action warranted under the aforementioned provision of law may not be taken against it.
Hearing in this case had been fixed for 27-03-2014 on which the respondents appeared in the office of Collector Adjudication-I Syed Shahanshah Hasnain.
After hearing both the sides, the Collector in his judgment remarked, “I have heard department and the respondent and case record has been examined. The respondent has tried to defend. However, their explanation was not satisfactory and convincing. On other hand, the department has categorically explained the position as mentioned in the above para. The case clearly speaks of the fact that the importer was aware of the chain of transaction at the time of award of contract. In the view of the foregoing, charges leveled in the show-cause notice are established. Goods are confiscated; however, goods may be released on the payment of total duty and taxes as ascertained by Customs and on payment of fine of Rs 6,363,556 and penalty of Rs 500,000, imposed on the importer. Role of clearing agent cannot be ignored too. The clearing agent did not fulfill his duties of filing the documents properly which otherwise he was supported to do under Customs Act, 1969. Therefore, a penalty of Rs 200,000 has also been imposed on clearing agent.”