December 28, 2006	Thursday	Zilhaj 06, 1427

ISLAMABAD, Dec 27: The Central Board of Revenue (CBR) has notified procedures for payment of excise duty on solvent oil for manufacturers of shoe adhesive.The procedures were notified through a federal excise general order (No 8) issued here on Wednesday.

According to the procedures, in case of sale of solvent oil to the registered manufacturers of shoe adhesives by the oil marketing companies (OMCs) after procuring the solvent oil from refineries/oil exploration companies, the OMCs shall, on the basis of orders received from the registered manufacturers of shoe adhesives, intimate refineries/oil exploration companies about the requirement of solvent oil for the shoe adhesive industry.

Based on such intimation, the refineries/oil exploration companies shall issue invoices to the OMCs reflecting the exemption of excise duty and mentioning that the solvent oil covered therein is meant exclusively for consumption of registered manufacturers of shoe adhesives.

In such cases, the oil refineries/oil exploration companies may issue invoices even subsequent to the completion of supply process as agreed between the refineries/oil exploration companies and oil marketing companies.

In case of sale of solvent oil by the refineries/oil exploration companies directly to a registered manufacturer of shoe adhesives, the exempt invoice shall be issued directly in the name of the manufacturer.

The OMCs shall maintain separate record of exempt supplies obtained from oil refineries/oil exploration companies under this General Order.

The manufacturer availing the exemption shall be required to meet the conditions laid down in SRO concerned (949(I)/2006) of Sept 6.

The manufacturer availing the exemption shall be required to maintain the record of purchases and imports of other raw material used for manufacture of shoe adhesives showing the description, quantity and value of goods, name, address and registration number of the supplier and the amount of tax on purchases, to be produced at the time of any subsequent audit to verify that the exemption for solvent oil has been availed for the manufacture of shoe adhesives only.