Post Clearance Audit Karachi detects short-payment of revenue by M/s GM Cables & Pipes Pvt Ltd
KARACHI: Directorate of Post Clearance Audit (PCA) Karachi has served Audit Observation on M/s GM Cables & Pipes Pvt Ltd creating a demand of Rs7.055 million, an amount, which was short-paid by the company.
During the audit of import data related to imports/clearances of “Copper Rods/Strips in coils’ correctly classifiable under PCT heading 7408.1100 chargeable to customs Duty of 10 percent, it has been observed that certain importers are clearing these goods by mis-declaring the same under PCT heading 7407.1020 chargeable to customs Duty of 5.0 percent, in order to evade duty/taxes.
M/s GM Cables & Pipes Pvt Ltd imported 06 consignments of ‘copper rods’ and cleared the same from MCC Appraisement (West) and MCC Appraisement (East) Karachi and MCC PaCCS by willfully and knowingly misdeclaring the goods under PCT Heading 7407.1020 chargeable to CD 5.0 percent however, copper rods in coils/rolls are correctly classifiable under PCT heading 7408.1100 chargeable to CD 10 percent.
By way of mis-declaration of classification, M/s GM Cables & Pipes Pvt Ltd evaded a total of Rs7.055 million. A Contravention Report to this effect has been served on the accused in this regard.