KARACHI: Pakistan Customs has detected the tax/duty evasion on import of abrasive sanding cloth by an importer who filed false and incorrect goods declaration through computerized clearance system.
It is detected that Shah Impex Trading Co has deliberately mis-declared net weight of goods to avoid tax/duty since unit of measurement and valuation ruling of subject goods is on weight basis.
“The offending value of goods come to Rs 0.193 million and total loss of revenue involved Rs 0.1 million,” said an Order-in-Original issued to the importer.
It is revealed when goods declaration examined and scrutinized that net weight of (abrasive sanding cloth in roll type GXK51 120 QTY 50 PCS/CTNs) is found 1300 kg against declared net weight of 700 kg.
In order to check as to whether the importers has paid the correctly and legitimate amount of duties and taxes under reference GD was selected for scrutiny in terms of section 80 of Customs Act 1969.
The mis-declaration of good detected on January 9, 2014 and the show cause notice had been sent to the importer on the next day by the customs authorities.
The ONO was issued by Adjudication Officer Inamullah Khan. But the offender or his accredited representative did not appear in hearing to defend the charges leveled on him.
“It will be presumed that the importer have nothing to submit in defense and do not wish to contest the charges and the case will be decided ex-parte on its merits on the basis of available record,” according to the ONO.
The customs authorities found the importer contravened provisions of Customs Act 1969 of Section 32(1), 32(2), 79[1]; Sales Tax Act 1990, Section 2(37), 6; and Section 148 of Income Tax Ordinance, 2001.