KARACHI: PCA serves audit Directorate Karachi has served an Audit Observation on M/s Master Beverages & Foods Limited Gujranwala regarding short payment or evasion of duty and taxes amounting to Rs25.875 million.
During the scrutiny of import data related to concessionary imports/clearances of plant, machinery, equipment and apparatus, including capital goods for various industries/sectors made under Fifth Schedule to the Customs Act 1969 for use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, livestock, dairy and poultry industry.
It has been observed that certain importers have availed the concession illegally because, under this Schedule concession is available to the imports exclusively made by the manufacturers after fulfilling the conditions specified in column (5) of the Table given in the Schedule PCA serves audit.
In addition to that only those goods are liable to such concession which are not listed in the locally manufactured items, notified through a Customs General Order issued by the Federal Board of Revenue (FBR) from time to time or, as the case may be, certified as such by the Engineering Development Board; and for such machinery and equipment imported as plant for setting up of a new industrial units provided the imports are made against valid contract or letter of credit and the total C&F value of such imports for the project is $50 million or above.
M/s Master Beverages And Foods Limited imported 02 consignments of Steel Workshop as Prefabricated Building for Dairy Farm and cleared the same from MCC Appraisement (West), Karachi through their clearing agent M/s Cavish Associates Private Ltd and claimed inadmissible benefit through mis-classification of the goods.
PCA serves audit Karachi has found that M/s Master Beverages & Foods Limited Gujranwala evaded a total of Rs25.875 million duty and taxes. The company is advised to pay the amount in government’s exchequer.