KARACHI: Customs Adjudication Karachi has ordered M/s The Searle Company to pay evaded amount of duty/taxes of Rs31.21 million on 18 consignments of Dextrose Anhydrous, and also ordered to pay Rs3.19 million of redemption fine on one consignments that had already been released.
The information was passed through DG Intelligence, Faiz Ahmed to Director Engr Habib Ahmad and Additional Director Afzaal Ahmad that M/s Searle Company was claiming undue exemptions on the import of active pharmaceutical ingredients.
Subsequently, on the directives of Deputy Director Abeer Javaid, Principle Appraiser Muhammad Qadeer Khan Appraiser Ilyas Ghichki and Tauseef Ahmed put a hold on a consignment of Hengtai dextrose anhydrous. Perusal of the Goods Declaration revealed the importer had claimed exemption of Customs Duty and Additional Customs Duty under 5th Schedule and exemption of Sales Tax under 8th Schedule. Scrutiny found the exemption under 5th Schedule of Customs Act 1969 are exclusively applicable to excipients/chemicals imported as raw materials for pharmaceutical industry, where excipients are not eligible for exemption of sales tax. This wrong claim of exemption resulted in evasion of duty and taxes amounting to Rs3.57 million.
Scrutiny of previous import data of M/s Searle Company revealed that previously 17 GDs containing Dextrose Anhydrous had been cleared claiming wrong exemptions.
After due deliberations and hearing both sides, Customs Adjudication held that the charges of claiming undue exemptions stand established and ordered the importer M/s Searle to pay the evaded duty and taxes of Rs31.21 million along with redemption fine of Rs3.19 million.