It said that the importer has brought 21 consignments and declared the same as "LED lights assorted type / size for solar use and fixture & fittings" in the Goods Declarations (GDs), filed through MCC- Appraisement (West). The examination staff in its report has not confirmed that the imported LED lights, SMD lights and fixtures are for solar use as declared on the GDs import documents. Therefore, it appears that the imported items are for general use operative under normal voltage of 220-240 volts normally used in Pakistan produced by hydel / fuel power sources.
The images scanned by the examination staff also show operative voltage as 220-240 volts, terming it as an undeniable proof that the imported goods are not meant for work operate with the renewable energy sources like Solar Energy' or Wind Energy. Furthermore, it said that the imported goods operate on alternating current (AC) voltage rather than the on direct current (DC) which was used and operated in the renewable energy technologies and the concessions under the claimed notifications were not available to the subject imports.
It also declared that the amount of Rs 35.23 million was short payment or evaded on account of Custom Duty, Regulatory Duty, Sales Tax, Additional Sales Tax and withholding Income Tax. Therefore, the importer has violated the provisions of Customs Act, 1969. Moreover, it said that the audit observation was issued to the importer for explaining and clarifying as to the basis on which concessions were availed as the item imported by them was not covered by description and definition under the claimed notifications.
The importer, however, failed to come up with any tangible evidence and explanation and they were also unable to refute the charges levelled by the department. Therefore, the importer was alleged to have intentionally & wilfully caused loss to the government exchequer amounting to Rs 35.23 million. It also directed the concerned authorities to issue notice for the recovery of evaded amount and also impose a penalty of Rs 0.4 million on the importer.