KARACHI: The Directorate of Post Clearance Audit (PCA) Karachi has served an Audit Observation on M/s Yousuf & Co, Karachi for claiming inadmissible benefit of concessionary regime.
Audit of import data found that M/s Yousuf & Co, Karachi, imported goods declared to be broken and damaged computer circuit boards and damaged LCD junk, used computer parts keyboard and mouse, used picture tube, computer system bare bone without ram and hard drive, weak and fuse monitor tubes wastage and sought clearance through MCC Appraisement (East) claiming benefits of SRO 549(I)/2008 for zero rating of Sales Tax and paid Income Tax 1.0 percent under zero rating regime of Sales Tax.
The description Broken and Damaged Computer CRT Circuit Boards and Damaged LCD Junk, Weak and Fuse CRT Monitor Tubes Wastage are correctly classifiable under PCT heading 8548.9000 attracting Custom Duty 25 percent instead of 20 percent and Used CRT Picture Tube are correctly classifiable under PCT heading 8529.9090 attracting Custom Duty 20 percent instead of zero percent.
Further, the imported items under declared PCT headings are not covered under the claimed SRO 549(I)/2008 read with SRO 230(I)/2011.
Moreover, the subject imported goods are also not covered under the claimed SRO 549(I)/2008 as the goods are in old and used, broken, damaged and wastage condition. Further the online status shows business nature as service provider.
Therefore, the exemption under the claimed SRO is not admissible, rather the importers were required to pay Custom Duty and Sales Tax as per correct PCT headings.
M/s Yousuf & Co, Karachi is advised to pay evaded amount of duty and taxes totaling Rs4.568 million.