Professional Documents
Culture Documents
2019
Kindly find enclosed Audit and Inspection Report on receipts accounts of the
Assistant / Deputy Collector UAB, West Wharf of MCC Preventive, Custom House, Karachi, for
the financial year 2018-19.
(SULTAN MAHMOOD)
Audit Officer FAT-III
AUDIT AND INSPECTION REPORT ON RECEIPTS ACCOUNTS OF THE
ASSISTANT / DEPUTY COLLECTOR UAB, WEST WHARF OF MCC PREVENTIVE,
CUSTOM HOUSE, KARACHI, FOR THE FINANCIAL YEAR 2018-19
INTRODUCTION:
This Audit & Inspection Report contains the paragraph on receipts accounts of the
Assistant / Deputy Collector UAB, West Wharf of MCC Preventive, Custom House, Karachi,
for the financial year 2018-19. Revenue audit was conducted by the Filed Audit Team
FAT-III of the office of the Director General Audit, Inland Revenue & Customs (South),
Karachi, comprising Mr. Sultan Mahmood, Audit Officer and Mr. Hamid Ali, Senior
Auditor, with effect from 29.07.2019 to 02.08.2019 (05 working days). Some of the
accounts/record was checked in detail while other reviewed generally. Observations of
minor nature which came into notice during the course of Audit were discussed verbally
and relevant record got corrected on the spot. Such types of observations were not
included in this report.
Previous audit for the financial year 2017-18 was conducted by the field audit team of
the office of the Director General Audit, Inland Revenue & Customs (South), Karachi,
and Audit & Inspection Report was under correspondence with the departmental
authorities
The results of audit based on the record provided by the MCC are embodied in the
succeeding paragraphs.
Part – I (Serious Irregularities)
Allowances on pushcart, toys, and goods of personal use under Rule 3A(vi) of SRO
During audit of baggage record maintained in the office of the Assistant Collector, Un-
Accompanied Baggage, West Wharf, Karachi, for the financial year 2018-19, it was observed
that certain adult passenger availed exemption under rule 3A(vi) on import of toys / pushcarts
which was available to child passengers only. The MCC did not notice the irregularity and
allowed exemption which resulted in loss of government revenue of Rs. 75,314 in 19 BDs as per
It was requested that the position may be justified during discussion the department
accepted the irregularity. Further progress was not reported till finalization of the Audit &
Inspection Report.
Para 02 Short-realization of government revenue due to under-valuation – Rs. 70,640
A.O. 02
227/2016 dated 08.08.2016, readwith Valuation Ruling No. 869/2016 dated 10.06.2016.
During audit of baggage record maintained in the office of the Assistant Collector, Un-
Accompanied Baggage, West Wharf, Karachi, for the financial year 2018-19, it was observed
that generator sets of B & C categories were imported, but the MCC assessed value of the
generators at lower rates than the applicable rates as provided under the above Order-In-
It was requested that the position may be justified during discussion the department
accepted the irregularity. Further progress was not reported till finalization of the Audit &
Inspection Report.
Para 03 Loss of government revenue due to inadmissible exemption – Rs. 64,053
A.O. 03
Allowances on pushcart, toys, and goods of personal use under Rule 3A(vi) of SRO
During audit of baggage record maintained in the office of the Assistant Collector, Un-
Accompanied Baggage, West Wharf, Karachi, for the financial year 2018-19, it was observed
that certain adult passenger availed exemption under rule 3A(vi) on import of toys / pushcarts
which was available to child passengers only. The MCC did not notice the irregularity and
allowed exemption which resulted in loss of government revenue of Rs. 64,053 in 19 BDs as per
It was requested that the position may be justified during discussion the department
accepted the irregularity. Further progress was not reported till finalization of the Audit &
Inspection Report.
Para 04 Loss of government revenue due to under-valuation of imported goods –
A.O. 04 Rs. 54,599
Ruling No. 869/2016 dated 10.06.2016 customs value generator set of Honda brand of 4.1KVA
to 7 KVA of China origin shall be assessed @ US$ 110 per KVA and of 1.1KVA to 3KVA @
During audit of baggage record maintained in the office of the Assistant Collector, Un-
Accompanied Baggage, West Wharf, Karachi, for the financial year 2018-19, it was observed
that generator sets of Honda brand from 1.5KVA to 5.5KVA of China origin were imported, but
the MCC assessed value of the generator sets at lower rates than the applicable rates as provided
It was requested that the position may be justified during discussion the department
accepted the irregularity. Further progress was not reported till finalization of the Audit &
Inspection Report.
Para 05 Short-realization of government revenue due to inadmissible exemption –
A.O. 05 Rs. 61,684
Allowances on pushcart, toys, and goods of personal use under Rule 3A(vi) of SRO
During audit of baggage record maintained in the office of the Assistant Collector, Un-
Accompanied Baggage, West Wharf, Karachi, for the financial year 2018-19, it was observed
that certain adult passenger availed exemption under rule 3A(vi) on import of toys / pushcarts
which was available to child passengers only. The MCC did not notice the irregularity and
It was requested that the position may be justified during discussion the department
accepted the irregularity. Further progress was not reported till finalization of the Audit &
Inspection Report.