KARACHI: The Directorate of Post Clearance Audit & Internal Audit (South) has uncovered a major tax evasion case involving a local textile importer accused of evading over Rs. 143 million in taxes by fraudulently claiming the status of a manufacturing unit to obtain illegal exemptions and reduced tax rates. On the directives of Director General PCA Yaqoob Mako, Director Afzal Wattoo has initiated strict action and started lodging FIRs against fraudulent elements, while the case was detected by Appraising Officer Imran Sethi during audit scrutiny. The accused, identified as Syed Bilal Raza, proprietor of M/s Imperial Textile (NTN: B418633-7), allegedly misused tax benefits meant for genuine manufacturers over a period of nearly two years. Based on credible intelligence, the directorate launched an investigation, which included audit analysis and physical verification of the declared business addresses. A verification visit on September 4, 2025, revealed that the first declared address—Ground Floor, Plot No. 165/1, Block-C, Manzoor Colony, Karachi—was only a storage facility without any machinery or production setup. During a telephonic conversation with the audit team, Bilal Raza himself admitted that he was not conducting any manufacturing process. The second address—Survey No. 57/3 654, Street No. 2, Sector G, Ch Rehmat Ali Road, Manzoor Colony—was found to be a residential property unrelated to the importer, as confirmed by local residents. Audit findings showed that M/s Imperial Textile imported assorted textile fabrics through 70 Goods Declarations (GDs) from October 2023 onwards, with a total declared value exceeding Rs. 1.25 billion. By misrepresenting itself as a manufacturer, the firm availed exemption from Additional Sales Tax (AST) and lower rates of Withholding Income Tax (WHT), causing a total revenue loss of Rs. 143,334,575/-, including Rs. 94,460,733/- under income tax. Despite issuance of an audit observation calling for justification and payment of evaded taxes, no response was received from the importer. The directorate concluded that Syed Bilal Raza had no valid defense and was clearly involved in deliberate tax evasion and fiscal fraud. Consequently, an FIR has been lodged invoking relevant provisions of the Customs Act, 1969, Sales Tax Act, 1990, and Income Tax Ordinance, 2001. The accused now faces potential imprisonment and heavy financial penalties. The investigation also covers the role of two clearing agents—Najmi Zergham of M/s Junaid Qamar Enterprises and Abdul Wahtd of M/s S.S.S. Enterprises—whose involvement in the fraudulent filings is under scrutiny. The case has been formally lodged before the competent court, and a comprehensive investigation report will be submitted as proceedings advance.
