ISLAMABAD, Sept 9: The Central Board of Revenue has exempted the import and supply of solvent oil from federal excise duty for manufacture of shoes adhesives.

The decision was announced through a federal excise notification SRO949 of 2006.

The exemption would be subject to the conditions that the supply is made to sales tax registered manufacturers of shoe adhesives having a valid storage license from the department of explosives, ministry of industries, and having active industrial electricity meters in their names; if imported, the import is made directly by sales tax registered manufacturers of shoe adhesives; having a valid storage license from the department of explosives and having active industrial electricity meters in their names; the collector of sales tax having jurisdiction shall verify that the unit claiming exemption has adequate in-house manufacturing facilities; and consumption of solvent oil according to the standard formulation to be worked out in consultation with the industry, shall be verified by the collector of sales tax having jurisdiction, on a quarterly basis by conducting special audit of the units availing exemption.