The Directorate of Intelligence and Investigation (I&I) – Customs, Karachi, has uncovered a significant tax evasion case worth Rs.642.83 million. The team detected this evasion during the scrutiny of a single Goods Declaration (GD) in September 2024. Led by Director Mian Masood Ahmed, Additional Director Afzaal Ahmad Wattoo, and Deputy Director Saif Ullah, the investigation took place under the guidance of Director General Ali Raza Hanjra from I&I-Customs, Islamabad.
The company involved, M/s. Enertech Water (Pvt) Ltd, Karachi, falsely claimed a sales tax exemption under Serial No. 22, Table-3 of the Sixth Schedule of the Sales Tax Act, 1990. This exemption applies only to projects with an Implementation Agreement with the Federal Government, which the importer did not have. Further investigations revealed that the exemption claim for customs duty under Serial No. 10, Part-I of the Fifth Schedule to the Customs Act, 1969, was also invalid.
Upon discovering these false claims, the Directorate immediately informed the Chief Collector of Customs Appraisement (South). This communication ensured that steps were taken to recover the evaded revenue. As a result, the Directorate successfully recovered Rs.462.83 million, marking the highest recovery from a single Goods Declaration in its history.
Another Case
The team’s efforts didn’t stop there. They also investigated another case involving the import of Solis brand grid-tied solar inverters with accessories. In this instance, the correct Valuation Ruling had not been applied. The Directorate recovered an additional Rs.77.97 million in duties and taxes from this case.
Altogether, the Directorate has recovered Rs.581.22 million in evaded taxes and duties in September 2024 alone. This accomplishment highlights their strong commitment to identifying loopholes in clearance processes and ensuring that all dues are collected properly.
The Directorate continues to work diligently to close any gaps in the customs system, preventing further tax evasion and securing legitimate revenue for the government. Their recent success, particularly the record-breaking recovery, underscores their determination and expertise in handling these complex cases.
Moving forward, the Directorate aims to maintain its momentum in uncovering fraudulent claims and ensuring compliance with tax laws. Their efforts contribute to a more transparent and accountable system, which is crucial for the country’s economic stability.
This case also sends a clear message to importers that false declarations and attempts to evade taxes will not go unnoticed. The Customs authorities remain vigilant, using advanced scrutiny techniques and rigorous investigation to detect and recover evaded revenue.
The recent recoveries have reinforced the Directorate’s reputation as a key player in safeguarding national revenue. As the crackdown on tax evasion continues, the Customs department will likely play an even more significant role in ensuring that all trade activities follow the law.
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