KARACHI: Collector Customs Adjudication Asif Marghoob Siddiqui has penalized LED lights and SMD lights importer for claiming inadmissible concessions with an intention to evade government legitimate revenue.
According to the facts of the case as reported by Directorate of Post Clearance Audit, M/s Electric Lighting Agencies imported a consignment declared to be assorted LED panel lights with fittings and parts, LED strip light and declared PCT 9405.1090 through MCC Appraisement West.
They claimed the exemptions only available to SMD, LEDs with or without ballast with fittings and fixtures for promotion of the renewable energy technologies. The examination staff in their examination report did not confirm that the imported LED lights are for solar or wind energy use.
It appears from the examination report that the imported items are for general use as these are operative under alternating current (AC), which is the normal power source produced and used in Pakistan’s national grid.
It was established beyond doubt that the imported goods are not meant to work with the renewable energy sources like wind and solar. Therefore, the claimed concessions are not available to the subject imports.
An amount of Rs3.018 million was evaded by M/s electric Lighting Agencies on account of customs duty, regulatory duty, sales tax, additional sales tax and withholding income tax.
After detailed deliberation, Collector Adjudication Asif Marghoob Siddiqui held the allegations established and noted the imports of LED lights and SMD lights without fittings and fixtures are not entitled to the claimed exemptions of duty and taxes.
Collector Adjudication ordered recovery of evaded amount of Rs3.018 million along with default surcharge to be determined by the department at the time of payment. A penalty of Rs0.3 million is also imposed on the importer M/s Electric Lighting Agencies.