KARACHI: MCC Preventive AFU has served two contravention reports on M/s Advance Telecom, as the company mis-declared category/type of the imported mobile phones to evade government’s legitimate revenue of Rs15.8 million.
According to the details of the case, M/s Advance Telecom cleared 16 consignments of Huawei brand mobile phones (various models) through WeBOC paying sales tax of Rs500/pc in terms of Ninth Schedule of Sales Tax Act, 1990, which provides sales tax rate of Rs500/pc for Category-B mobile phones i.e. medium prices cellular phones.
MCC Preventive has evidences that mobiles with similar features imported by M/s Advance Telecom are being regularly cleared in Category-C i.e. smart cellular mobile phones by M/s Digicom (Qmobile) and Tech Sirat Pvt Ltd (Lenovo). Even the same model of mobile phones were cleared in Category-C by Huawei Technologies Pvt Ltd in MCC Preventive, Lahore.
As per specifications of the mobile phones imported by M/s Advance Telecom, most of the features fall in Category-C, which attracts sales tax of Rs1,000/pc. The wrong application of category and rate of sales tax in 16 consignments resulted in short levy of taxes of Rs15.8 million.
A demand notice is issued to the importer and contravention report is served for adjudication proceedings. Additional Collector Syed Asad Raza Rizvi has formed a team comprising to conduct post release verification (PRV). The team comprises of Assistant Collector Raza Naqvi, Principal Appraiser Aurungzaib Katbar and Appraising Officer Tariq Aziz and Ali Mohammad Soomro.