Textile chemicals importer charged with duty/tax evasion

KARACHI: The Directorate of Post Clearance Audit (PCA) has prepared two contravention reports against M/s Magna Textile Industries for evasion of customs duty and other taxes on account of availing inadmissible benefit of SRO 565(I)/2006. Contravention reports have been forwarded for adjudication proceedings.

According to details, M/s Magna Textile Industries (Pvt.) Limited had imported consignments of Pigment Preparations, Brightening Agents, Carbon Black, Emulsifier WN, Kevi Green, Nonionic Surface Active Agents etc. and got them cleared from MCC Appraisement West and MCC Appraisement availing inadmissible exemption of Customs Duty as in excess of 5 percent under SRO 565(1)/2006.

Benefit of the said SRO is admissible to Sales Tax Registered manufacturers of Master Batches having suitable in house facility; subject to conditions notified under SRO including that clearance shall be allowed through one port/dry port. While in Sales Tax profile, principal activity of the said importer is manufacturer cum importer/exporter for “Finishing of Textile” and not as the manufacture of Master Batches. Therefore, the imports were not covered under the SRO and were subject to statutory rate of customs duty, sales tax and withholding tax.

Thus, an amount of Customs duty and taxes totaling 35.282 million has been short paid evaded by M/s Magna Textile Industries.

 

 

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