KARACHI: The Customs Appellate Tribunal has reserved the judgment in the case regarding fraudulent import of electric buses, which would be announced on January 18, 2022. However, the Customs is advised by the Tribunal to submit their comments after the announcement of judgment.
It is interesting to note the hearing in the case was held on January 2th, and order is reserved on January 14th, 2022. Tribunal reserve the judgment, which will be announced on January 18, 2022. An official said the Tribunal is the graveyard for the cases involving government revenue. However, cases offering corruption and money making opportunities, such cases are swiftly decided.
Collector Adjudication Feroz Junejo has imposed fine and penalty of another Rs442 million on M/s CAUSIS Mass Transit (Pak) Private Limited for fraudulent mis-declaration of value of imported electric buses to evade legitimate government revenue.
With this order-in-original total fine/penalty imposed on the importer has reached to Rs884 million. The importer willfully attempted to manipulate Customs import data to get imported buses cleared at suppressed values going forward, which would result in a continuous loss of revenue to the government.
Meanwhile, Sindh government has inaugurated the electric bus service project in Karachi, despite the fact almost all the imported buses are still under confiscation by Customs. The project is launched with only six buses.
M/s CAUSIS Mass Transit (Pak) Private Limited imported low floor electric buses fully built drive away condition with rechargeable lithium-ion battery from M/s Causis General Trading LLC, Dubai and sought clearance through authorized customs clearing agent M/S Haris Enterprises under PCT heading 8702.4090 by claiming exemptions of Customs duty and Sales Tax at a declared value of $45000/unit C&F Karachi.
The importer/clearing agent and the concerned shipping agent were asked to provide all relevant documents including documents submitted at the port of loading as no local agent of the manufacturer of the impugned buses in the country for ascertaining MRSP as per procedure laid down under CGO 14/2005 pertaining to assessment of vehicles was available.
Accordingly, the goods were assessed in the light of evidential export GDs i.e. $214,300/unit calculated after adding freight etc. While assessing the aforesaid buses, the assessing officer declined the exemptions of Sales Tax claimed by the importer in the Sixth Schedule and levied 1% CVT which was not applied earlier.
M/s. CAUSIS Mass Transit (Pak) Private Limited and the agent M/s Haris Enterprises knowingly and willfully attempted to evade legitimate duty and taxes by declaring untrue value in the goods declaration on the basis of fabricated and grossly under invoiced value of the goods.