KARACHI: Directorate of Post Clearance Audit (PCA) has served contravention on eight importers of LED lights for claiming inadmissible concessions to evade government revenue.
On the directives of Director PCA Karachi Gul Rehman, Deputy Director Sajid ali Baloch and his team comprising Appraising Officers Faiz Mudasser and Azhar Abbas conducted scrutiny and audit of import data. It was found that several importers imported consignments of “LED Lights with Fittings and Fixture (Ceiling, Panel Light use for Solar) under PCT heading 9405.1090 and cleared the same and claimed the benefits of Fifth Schedule (Customs Duty) Part I-24, Sixth Schedule (Sales Tax)-15.2- 25/06/20 and Income Tax at zero percent.
The exemptions are only available to SMD, LEDs with or without ballast with fittings and fixtures for promotion of the renewable energy technologies. Whereas, clause 77 part-IV Second Schedule of Income Tax Ordinance, 2001 is more restrictive and allows exemption to items with dedicated use of renewable source of energy which includes sources like solar and wind power only.
The examination staff in their examination report has not confirmed 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 / works under alternating current (AC) of voltage ranges 86 -265 volts which is the normal thermal / hydral power sources normally produced and used in Pakistan National Grid.
The images scanned by the examination staff and examination report shows goods are operative at voltage as 86 – 265 volts. It is an undeniable proof that the imported goods are not meant for to work / operate with the renewable energy sources like Solar Energy or Wind Energy.
Further it transpires that the imported goods operate on alternating current (AC) voltage rather than on direct current (DC) which is used / and operate in the renewable energy technologies. Therefore, the concessions under the claimed notifications are not available to the subject imports.
The importers served contravention include M/s Bhutta International, M/s Green Globe Pvt Ltd, M/s Kinjhar International, M/s Marvi International, M/s Num Traders, M/s R.J Corporation, M/s ZAH International, M/s Zamir Trading Co.
These eight importers cumulatively deprived national exchequer of legitimate revenue to the tune of Rs21 million.