KARACHI: Director Post Clearance Audit Karachi Gul Rehman has served Contravention on M/s Pakistan Mobile Communication Ltd to pay in the national exchequer an amount of Rs304.97 million, which was evaded on the import of Lead Acid VRLA Batteries for Telephone Exchanges.
The evaded amount include Rs208 million of Customs duty, Rs70.89 million of sales tax, Rs10.26 of additional sales tax and Rs15.09 of income tax totaling Rs304.97 million.
During the scrutiny of import data of ‘Lead Acid VRLA Batteries for Telephone Exchanges’ falling under PCT heading 8507.2010, chargeable to customs duty 10 percent it was observed that certain Mobile Communication Companies imported multipurpose batteries, evidently not for the use in telephone exchanges under this PCT Heading, while such batteries are correctly classifiable under PCT heading 8507.2090 chargeable to customs duty 20 percent.
Thus, by mis-declaring these multi-purpose batteries under PCT heading 8507.2010 they have made a deliberate and willful attempt to evade duty/taxes.
M/s Pakistan Mobile Communication imported several consignments through MCC Appraisement East (eight GDs) , MCC Appraisement West (four GDs) and MCC Port Qasim (26 GDs).
M/s Pakistan Mobile Communication have imported ‘cellular infrastructure equipment for telecom sector consisting of VRLA Gel Battery (12V)’, Rechargeable Battery (12V) and SBS EON 190 (12V) by mis-declaring them to evade duty and taxes.
PCA served Audit Observations on several companies regarding short payment of duty and taxes, of these some of the companies made the payment. M/s Huawei Technologies Pakistan and M/s CM Pak Pakistan. However, M/s Pakistan Mobile Communication refused to make the payments therefore Deputy Director PCA Rashid Munir on the directives of Gul Rehman served the contravention.