RECORDER REPORT

KARACHI: Model Customs Collectorate (MCC), Port Qasim foiled an attempt of evading Rs22.13 million taxes by steel importer.

According to an FIR, M/s M.M Steel Daska imported five consignments of tin mill black plate coils of secondary quality and galvanised steel sheets in coils of secondary quantity.

The collectorate has received a request for amendment in IGM for changing the name of importer from M/s M.M Steel Daska Sialkot to M/s Sher Steel Furnace and Re-rolling mills, Dargai, Malakand with the rationale that the said goods imported in the name of M/s M.M Steel Daska belong to M/s Sher Steel but the same have been wrongly manifested in the name of M/s M.M Steel.

The application was examined and the same was rejected based on the grounds of loss of revenue and if allowed, M/s Sher Steel will claim exemption of sales tax and income tax as per law.

Upon rejection, another application was received in the name of M/s Sher Steel with the request to allow re-export of the subject goods. This created a reasonable doubt regarding attempt to claim inadmissible exemptions of taxes. Therefore, a letter was issued to the M/s M.M Steel endorsing a copy to M/s Sher Steel letter.

In reply, M/s Sher Steel submitted undertaking that they were not aware of any business of M/s M.M Steel. This lead to the conclusion that M/s M.M Steel used the name of M/s Sher Steel and tried to obtain the benefit of tax exemption granted to FATA/PATA under sixth schedule for sales tax and under clause 10 of part IV of the Income Tax Ordinance. Therefore, it is transpired that M/s M.M Steel has deliberately attempted to evade sales tax and income tax to the tune of Rs22.13 million of taxes by submitting fake documents.