KARACHI: Directorate of Post Clearance Audit (PCA) Karachi has served an Audit Observation on M/s International Fancy Light Lahore for payment of Rs2.713 million which was evaded through claiming inapplicable exemptions.
Audit of import data found that M/s International Fancy Light, Lahore imported ‘LED Lights / LED Strip Light in Rolls for Solar use’ as declared on invoice available scanned in the WeBOC Computer System, which are without converter/driver of the corresponding quantity of LED Lights, and declared PCT heading 9405.1090 through MCC Appraisement (West) and claimed certain exemptions.
The exemptions are allowed to items with dedicated use of renewable source of energy, which includes like solar and wind power resources only.
The examination staff at the time of examination did not confirm that LED Lights are for solar use as declared in the invoice. The bill of lading available scanned in the system also describe the description as “Lighting Fixture and Fittings Parts”.
As the LED lights are not for solar use as declared these are not covered under the claimed notification. Rather these are operative at 240 volts used in Pakistan produced by hydra / fuel based power. It is an undeniable proof that the imported goods are not meant for work / operate with the renewable energy sources like Solar Energy or Wind Energy. Therefore, the concessions under the claimed notifications are not available to the subject imports.
Therefore importer M/s International Fancy Light, Lahore, is required to pay a total short levy of Rs2.713 million.
Similarly, M/s Ahmed Medix imported a consignment declared to be solar LED Lights and claimed exemptions available for items with dedicated use of renewable source of energy, which includes like solar and wind power resources only.
However, the imported goods were not of the nature eligible for the claimed exemptions. M/s Ahmed Medix is required to pay a total of Rs3.161 million, which was short paid or evaded. [the_ad id=”31605″] Another Audit Observation was served on another LED lights importer namely M/s Kainat Enterprise Lahore for evading/short-paying a total of Rs2.209 million duty/taxes through claiming inapplicable exemptions.
Another Audit Observation was served on another LED lights importer namely M/s Naz International Karachi for evading/short-paying a total of Rs0.903 million duty/taxes through claiming inapplicable exemptions.