KARACHI: Directorate of Post Clearance Audit (PCA) Karachi has served 12 Contravention Reports on several importers of shredded/grated cheese for evasion of leviable, sales tax and withholding income tax by inadmissible availing the benefit of 6th Schedule of the Sales Tax Act. On the directives of Director Gul Rehman Additional Director syed Naeem Akhtar, Deputy Director Iqbal Ahmed and staff have detected evasion of Rs35 million cumulative in the above mentioned 12 cases. During the audit of import data of shredded/grated cheese it has been observed that several importers and traders imported consignments of shredded/grated cheese and got these cleared by mis-declaring the classification under PCT heading 0406.1010 in order to avail inadmissible benefit/exemption for Sales Tax under 6TH Schedule of the Sales Tax Act, 1990. The imported goods are appropriately classifiable under PCT 0406.2000 and are chargeable to Sales Tax 17 percent and corresponding Income Tax 06 percent. Thus, by mis-declaring the imported goods under PCT 0406.1010, to avail the inadmissible benefit/exemption of Sales Tax and corresponding Income Tax, these importers and traders have evaded/short paid government’s legitimate revenue. The importers served with Contraventions include M/s. International Trading House, M/s. MCR Pakistan, M/s. Talha Trading Co, M/s. Rotech Enterprises, M/s. Naft Corporation, M/s. Khalil Hanif Impex, M/s. Salman Enterprises, M/s. Ekda Corporation and M/s. Intrachem. Contravention reports have been forwarded for initiating adjudication proceedings in the case.