MCC Appraisement East detects fiscal fraud involving millions of rupees

KARACHI: The Collector of Customs Adjudication Javed Chaudry has served Show Cause Notice on the importer and clearing agents for evading government revenue through suppressing actual value of imported consignments.

According to details, Model Customs Collectorate of Appraisement (East), Karachi found that importer namely M/s S. Fazal Ilahi & Sons is suppressing actual value of imported consignments in order to evade legitimate government revenue.

Collector Appraisement East Majid Yousafani had received the information about this fiscal fraud. The modus operandi of this offence was such that the importer with the active connivance of his clearing agent M/s. Kaikobad Pestanjee Kakalia and M/s A & S Enterprises used to mis-declare mode of payment.

The actual mode of payment was “With LC”, but they used to mis-declare as “Without LC” to suppress the actual value of the imported goods. Besides, suppressing mode of payment “Without LC” instead of “With LC”, in some case, the LC amount was less declared.

The role of both clearing agents is very crucial in this fiscal fraud as the GD was filed by the concerned agents on behalf of the importer  and at the time of filing of the GDs, both agents knew the actual mode of payment being “With LC”, but they filed the GDs mis-declaring “Without LC”, knowingly and fraudulently.

Majid Yousafani formed a team comprising Principal Appraiser Ibrahim Khan and Preventive Officer Malak Hashim, which analyzed the import data of the said importer as well as the details of LCs provided by the concerned bank  and detected discrepancies in 26 GDs out of 99 GDs filed by the importer.

The importer along with the clearing agents have been called upon to show cause as to why the evaded amount of duty and taxes totaling Rs37.22 million may not be recovered from and penal action may not be taken against them.

It may be mentioned here that the similar nature of fiscal fraud by M/s Fazal Ilahi & Sons has also been detected by MCC Appraisement West and MCC Port Qasim.

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