KARACHI: The Directorate of Post Clearance Audit (PCA) has served a Contravenetion Reports on aerosol spray/spray paints importers for evading government’s revenue through mis-declaration of classification.
According to details of the case, M/s Ashfaq Autos; M/s Shaheen Enterprises; M/s A.I Traders; M/s AW Impex; M/s Yousuf Enterprises; M/s Naurung Impex; M/s Aziz Sons; M/s 2-Star International; M/s Sabir Impex; M/s MSM International; M/s Tariq Motors; M/s Auto Link; M/s Global Industries Pakistan; M/s Ali Enterprises; M/s Faisal Shafiq Traders; M/s Modern Corporation; M/s ABCO International Corporation; M/s Brooks Impex; M/s Penta Gon International; M/s ESSEFF Traders; M/s Diwan International Associates and M/s Warre Wala & Company evaded millions of rupees.
These importers imported several consignments of Aerosol Spray Paints under PCT Heading 3208.9090 and cleared the same through their clearing agents paying Custom Duty 12.5 percent after claiming benefit of SRO 659(I)/2007.
However, the subject goods are correctly classifiable under PCT 3208.2090 attracting Customs Duty 20 percent Sales Tax 17 percent, Additional Sales Tax 3.0 percent and Income Tax 6.0 percent.
By way of mis-declaration of classification, the above mentioned importers has evaded/short paid duty/taxes to the tune of millions of rupees.
Accordingly, Audit Observations were issued for explaining and clarifying as to on what basis they evaded the leviable duty and taxes. The importers, however, failed to come up with any tangible evidence and explanation and were also unable to refute the charges leveled by the Department.