Evasion through mis-declaration; show cause notice served on M/s reliance Importer & Exporter

KARACHI: The Customs Adjudication has served a Show Cause Notice to M/s Reliance Importer & Exporter along with clearing agent M/s Reliance International, Quetta for evading government legitimate revenue to the tune of Rs1.179 billion through mis-declaration.

According to the details of the case, a consignment declared to be containing coning oil imported by M/s Reliance importer & Exporter was intercepted at gate out stage at KICT and blocked online to check veracity of information. Initial scrutiny of GD revealed that consignment was cleared through MCC, Appraisement (West), on payment of total duty and taxes amounting to Rs.645,854 availing undue benefit of SRO-1125(1)/2011.

The Customs sent a sample from the consignment to the Customs Lab for chemical analysis. Lab Test Report of the same does not specifically confirm the description of the oil as Coning oil, representative samples were found to be the mineral oil which may qualifies as Base Oil for making of coning oil, hence extending benefit of SRO 1125 was unjustified.

Total assessable value of the goods has been worked out to be Rs.7,020,159, involving leviable duty and Rs.1,825,241as against the total taxes of Rs.645,854 paid by the importers. Hence, the differential amount of recoverable taxes comes to Rs.1,179,387.

The goods were seized and given in the custody of KICT for safe custody and the importer as well as the clearing agent has been asked to show cause for the violation. Hearing in this case has been fixed on August 28, 2014.

 

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