KARACHI: Directorate of Customs Intelligence and Investigation (I&I Karachi) has served an Incident Report for Adjudication against Defence Housing Authority LHR Gujranwala Chapter for claiming inadmissible exemptions.
An official said an FIR could also be lodged against DHA Lahore in this regard.
Pursuant to an information regarding inadmissible claim of exemption by Defence Housing Authority LHR Gujranwala Chapter on the consignment of “All-in-one integrated LED street lights”, the subject consignment was blocked at the gate out stage.
The scrutiny of the consignment revealed that the importer had declared the goods as “Smart Light Power Including Photovoltaic Solar Panel of assorted capacities under PCT heading 9405.4090 and claimed the exemption under 5th schedule to Customs Act 1969, 6th schedule to the sales tax Act 1990 and 3rd schedule to Income Tax Ordinance 2001 and SRO 680(1)/2019.
The claimed exemptions are available to such goods only which are not locally manufactured. However, as per local manufacturing CGO 02/2017, “All type of LED bulbs and lamps” are locally manufactured.
Hence the claimed exemptions are not admissible to the instant goods.
Interestingly, the importer’s claimed exemptions were denied by Appraising Officer and Principal Appraiser recording the same aforementioned legal basis in the assessment sheet.
However, the DHA through their customs agent filed the review on the basis that their goods were solar panels of PCT heading 8541.4000 and due to clerical mistake these were declared under the PCT heading 9405.4090.
The Assistant Collector after re-examination split the single item i.e All-in-one integrated LED Solar lights along with standard accessories into three items including (1)LED lights under PCT heading 9405.4090. (2) Battery Boxes under PCT heading 8507.8000 and (3) Solar Panels 8541.4000 and extended exemptions on item No. 2 and 3.
During examination by the staff of the Directorate it was found that the goods are All-in-one integrated LED Solar Street Lights classifiable under PCT heading 9405.4090 and not entitled to the exemption as these are locally manufactured.
Moreover, importer’s scanned documents i.e. invoice and catalogue also show that the goods are single item of heading 94.05.
The differential amount of the duty / taxes on account of Rs214.46 million is recoverable from the importer and the offending goods worth Rs195.44 million are seized.