KARACHI: The Directorate of Post Clearance Audit (PCA) has served Audit Observations on three companies including M/s PIA, M/s PTCL and M/s CM PAK suggesting to deposit a cumulative of Rs27.306 million into government exchequer as the same was evaded/short-paid through misuse of concessionary regime and mis-declaring tariff code.
The scrutiny of the record found that M/s. PIA Corporation is entitled to avail facility under S.No.29 of SRO 575(I)/2006.
The exemption is available to “S.No.29. Aircraft spares, parts, tyres, navigational equipment, accessories for maintenance and operations of aircrafts, chemicals, lubricants and paints, air tickets, aircraft carpet, aircraft fabric, skydrol (brake fluid), laminated sheet, aluminum alloy sheets, aluminum alloy extrusions, aircrafts seats, tools, test equipment, lift jackets, spares of TGS vehicle, meals trolley, ball hand seal, standard units, exterior washing liquid, air head set electronics, air head set pneumatic and sealants.
However, it transpired that thermal paper boarding cards and air way bills are not entitled to the benefit of SRO 575(I)/2006, but M/s. PIA has not only claimed facility under S.No.29 of SRO 575(I)/2006 in 42 GDs but has cleared the goods under wrong PCT 4821.9000 which is for paper and paper boards labels not printed.
The imported thermal boarding passes airway bills and tags are surely printed hence the same are correctly classifiable under PCT 4821.1090 CD of 25 percent. Besides the value is also under stated in majority cases.
Total evaded amount at the assessed rate comes to Rs24.317 million and M/s PIA has been advised to pay the evaded amount.
Moreover, M/s Pakistan Telecommunication Company Limited (PTCL) imported Dual Polarization Antenna with Standard Accessories and cleared the same from MCC Port Qasim through their Clearing Agent M/s Ryan Agencies (Private) Limited by mis-declaring the goods under PCT 8517.6990 attracting Customs Duty of 10 percent whereas the goods are correctly classifiable under PCT heading 8517.6290 chargeable to Customs Duty of 20 percent.
M/s PTCL has been found to have evaded government revenue totaling Rs2.144 million, which the company is suggested to pay.
M/s. CMPAK Limited imported Antenna RFS 15GHZ Single Polar Integrated Antenna with Standard Accessories and cleared the same from MCC Appraisement (East), Karachi through their Clearing Agent M/s SASPAK Cargo (Private) Limited by mis-declaring the goods under PCT 8517.7000 attracting Customs Duty at 10 percent whereas the goods are correctly classifiable under PCT heading 8517.6290 chargeable to Customs Duty of 20 percent.
M/s. CMPAK Limited evaded duty/taxes to the tune of Rs0.845 million, which the company is suggested to deposit in government exchequer.
However, if the importer companies are of the opinion that audit observation is not correct they may provide self explanatory written clarification along with supporting documents i.e. Commercial Performa Invoice, Contract, and Catalogue/literature etc. or explain their position in person or through duly authorized representative.