Skimmed milk importer penalized for availing inadmissible concessions

KARACHI: Additional Collector Customs Adjudication Syed Mahmood Hassan has penalized the skimmed milk importer M/s Irfan Brothers for claiming inadmissible concessions through mis-declartion.

According to the details, Directorate General of Intelligence and Investigation-FBR (Customs Enforcement), Karachi received information that M/s. Irfan Brothers will attempt to clear a consignment of Skimmed Milk powder claiming un lawfully zero rated exemption of Sales Tax to evade duty/taxes.

In pursuance of the said information, the consignment of Skimmed Milk powder imported from India was kept under surveillance. After having been cleared/ assigned to gate staff through Red channel from Model Customs Collectorate, Appraisement (East), Karachi, the said consignment was blocked in the system  by the Directorate General of Intelligence and Investigation.

Upon reexamination conducted by staff of the Directorate General of Intelligence and Investigation-FBR skimmed milk powder (Spray Dried) weighing 25 MT having brand Paras in retail packing of 1.0 Kg were found.

It was observed that the importers had unlawfully availed zero rated exemption of Sales Tax, which was accordingly extended by the Customs assessing staff despite the fact that the examining officer, in his examination report had clearly reported goods as Skimmed Milk powder in 1.0 Kg packing bearing “Paras” Brand and the exemption is available to Skimmed Milk powder excluding that sold in retail packing under a brand name.

The incidence of evasion of taxes is worked out to Rs1.817 million, which are recoverable from the importer.

After detailed deliberation of the case, Additional collector Adjudication established the charges leveled against the importer M/s Irfan Brothers and ordered to confiscate the goods. However, importer was given the option to pay 20 percent redemption fine for the release of goods. A penalty of Rs1.0 million was also imposed on the importer.

Customs Adjudication had advised MCC Appraisement East to examine the role of officials involved in the clearance of the goods and initiate appropriate action accordingly.

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