Pakistan customs department has issued show-cause notices to 30 steel pipe manufacturers for recovery of millions of rupees customs duty and other levies evaded on import of raw material.
Sources told Business Recorder that the Collector of Customs Appraisement had received credible information that certain manufacturers of welded steel pipes had imported cold rolled coils (CRC) and hot rolled coiled (HRC) of prime quality and availed the concessionary rate of 5 percent customs duty under SRO 565 (1)/2006.
The exemption envisaged under the aforesaid SRO is meant for CRC and HRC of specified description mentioned therein for which the importers have quota entitlement approved by the sales tax authorities.
On the basis of aforesaid information detailed scrutiny was conducted of the imports of CRC and HRC steel sheets made by welded steel pipe manufacturers from Model Customs Collector (MCC) appraisement during last three years.
Scrutiny of the import record showed that several steel pipe manufacturers had imported different products.
In some cases, import of CRC and HRC thickness is also different then classifiable under the afore-stated PCT heading, whereas the scrutiny of import record for the three years transpired that the pipe manufacturers had imported CRC and HRC in coils of prime quality of other thickness classifiable under different PCT headings.
In this way, importers had availed inadmissible exemption of customs duty, which resulted in short payment of millions of rupees customs duty and other leviable taxes, while all other commercial importers had paid 10 percent duty on import of prime quality HRC and CRC.
Now, therefore, on the basis of above reported facts Collector of Customs Appraisement has issued show-cause notices to 30 steel pipe manufacturers to state as to why they evaded amount of duly/taxes.
"Thus, on the basis of evaded/short paid afore-stated amount, importers had committed offence of evasion of duty/taxes in violation of Section J2 (1) & (2) of the Customs Act, 1969 read with section 6. 7A (2) and 33 of the Sales Tax Act 1990 and Section 148 of the income Tax Ordinance, 2001 punishable under clause 14 of Section 156 (1) of the Customs Act. 1969 and the relevant afore mentioned provisions of'' the Sales Tax Act. 1990," the notices issued by customs appraisement said.
Hearing, in this case is fixed for Monday at Customs House Karachi and customs has asked importers that respondents may appear in person or through some accredited representative to defend the case.
The written reply to show-cause notice may be submitted on or before the said date. However, collector of customs appraisement has made it clear that in case of no response to the show-cause notice and failure to avail the opportunity of hearing, the matter shall be decided on the basis of evidence/material available on record.
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