Law: Customs Act, 1969

Section: 32,32(1)(c)(2),32(3A),156(1),156(14),194 -A

Law: Income Tax Ordinance, 2001

Section: 148,50(5)

ORDER ADNAN AHMED, MEMBER JUDICIAL-II---Through this order, I intend to dispose of Customs Appeal No. K-1610 of 2014 filed against Order-in-Original No.47 of 2014-15 dated 16-9-2014 passed by the Additional Collector of Customs (Adjudication-II), Karachi. 2. Brief facts of the case as reported by the Directorate of Post Clearance Audit (Customs), Karachi vide Contravention Report No.PCA/2613/2012/Audit dated 23-10-2012 that on scrutiny of the data of concessionary rate of Income Tax @ 3% admissible on import or raw materials vide clause (9A) of Second Schedule Part-II of the Income Tax Ordinance, 2001 to the industrial undertakings defined under sub-section (29C) of Section 2 ibid for their own use, it was observed that importer that Messrs Koldkraft (Pvt.) Ltd. have got various consignments of components/parts and finished articles on concessionary rate of Income Tax @ 3%, as against the standard payable rate vide Goods Declarations bearing CRN Nos. (1) I-HC-1309471 dated 10-2-2010, (2) I-HC-1969580 dated 7-11-2011, (3) I-HC-1701939 dated 2-2-2011 (4) I-HC-1756207 dated 18-3-2011 and (5) I-HC-1106214 dated 12-8-2009. The aforesaid inadmissible concession resulted in the short payment of Income Tax to the extent of Rs.9,97,532. 3. The Adjudicating Officer after hearing the respondent passed an ex-party order by observing that the appellant was responsible for non-appearances. The order-in-original is concluded as under: "I have examined record of the case, written replies of the importer, and heard .arguments of the Department Representative. The crux of the matter is as to whether concessionary rate of Income Tax @ 3% was available goods imported by the respondent in terms of clause (9A) of Second Schedule Part-II of the Income Tax Ordinance, 2001 to industrial undertaking defined under subsection (29C) of Section 2 ibid for their own use. The importers in the instant case had imported components/parts and finished articles, which do not qualify as raw material in terms of definition provided in Chapter-I (Definition) of Customs General Order 12/2002. Therefore, standard rate of Income Tax @ 3 % was chargeable thereon. The representatives of the department…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492