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Customs Adjudication-II tells importer to pay evaded taxes, duties worth Rs 1.64 million

Customs Adjudication-II tells importer to pay evaded taxes, duties worth Rs 1.64 million

KARACHI: The Collectorate of Customs Adjudication-II has issued an Order-in-Original against M/s Al Madina Traders for evading taxes/duties worth Rs 1.64 million by taking undue benefits under SRO 1125(I)/2011 dated 31.12.2011.

According to details, the Directorate of Post Clearance Audit, Customs Karachi, while scrutinizing the data of importers relating of claiming of admissible/inadmissible concessions in taxes, found that the importer had illegally availed the benefits of concessionary rates under the aforesaid SRO.

In the ONO, Additional Collector Customs Adjudication-II Syed Mahmood Hassan stated that the importer M/s Al Madina Traders Karachi held intentionally and willfully caused loss to the government exchequer by availing benefits of SRO 1125(I)/2011 dated 31.12.2011 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 27.07.2015 whereby hearing was fixed for 12.8.2015, 20.08.2015 and 02.9.2015. However, no one appeared neither any written reply was submitted by the respondents.

In the ONO, the Deputy Collector-Adjudication-II directed the importer to pay the evaded revenue of Rs 1.64 million. However, in addition, a penalty of Rs 250,000 has also been 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.