KARACHI: Collector Customs Adjudication Ch. Mohammad Javed has penalized several lubricating oil importers for evading Federal Excise Duty levied on import of lubricating oil under PCT 2710.1951 and 2710.1952. The goods cleared through Customs Computerized Clearance System.
Scrutiny of the relevant import data of MCC (PaCCS) revealed that huge amount of Federal Excise Duty was been evaded / short-levied on import of under-reference commodity in utter violation of SRO-671(1)/2006 whereby the minimum price of lubricating oils of PCT headings 2710.1951 and 2710.1952 has been fixed by the Board at $2.0 per liter for the purpose of assessment of Federal Excise Duty at import stage. In majority of the cases, Federal Excise Duty appears to have been paid at 10 percent on self-assessed retail prices much lower than the minimum price fixed by the Board.
Several importers were found to have short paid the levy. The importers were advised to pay the short-paid amount, to which importers approached Collector Appeals. Dissatisfied the importers opted for Appellate Tribunal, which remanded back the cse to Customs Adjudication.
The deliberate omission / non-implementation of afore-said statutory notification resulted into evasion/short-levy of Rs16.75 million in total.
Collector Adjudication found the case established and advised the importers to pay the amount cumulatively to the tune of Rs16.75 million. These importers including M/s Sohail Azhar Lahore, M/s Cummins Sales & Service Karachi, M/s Castrol Pakistan Private Ltd and M/s Integrated Power Solutions have also been imposed a penalty of Rs500,000 each. The default surcharge payable would be calculated at the time of payment.
The clearing agents of these importers have also been fined Rs100,000 each.