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June 8, 2005

Wednesday

Rabi-us-Sani 30, 1426

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SUPPLEMENTAL PROVISIONS

40.Power of Board to make rules.–

(1) The Board may make rules to carry into effect the purposes of any or all the provisions of this Act including charging fee for processing of returns, claims and other documents and for preparation of copies thereof.

(2) In making rules under this section, the Board may provide that any person committing a breach of any rule shall, without prejudice to any other action that may be taken against him under this Act, be liable to such penalty as may be prescribed under the rules and that any article in respect of which any such breach is committed shall be confiscated or destroyed.

(3) The Board may, in respect of cigarettes, make rules or issue instructions for the purpose of affixing duty stamps and banderoles and any instructions issued in this behalf shall have the force of rules issued under this Act.

41. Bar of suit and limitation of suit and other legal proceedings.–

(1) No suit shall be brought in any civil court to set aside or modify any order passed, or any assessment, levy or collection of any duty, under this Act.

(2) No suit prosecution or other legal proceeding shall lie against the Federal Government or against any officer of the Government in respect of any order passed in good faith or any act in good faith done or ordered to be done under this Act.

(3) Notwithstanding anything in any other law for the time being in force, no investigation or inquiry shall be undertaken or initiated by any governmental agency against any officer or official for anything done in his official capacity under this Act, rules, instructions or direction made or issued thereunder without the prior approval of the Board.

42.Observance of Board's orders, directions and instructions.–

All officers and persons employed in the execution of this Act and the rules made thereunder shall observe and follow the orders, directions and instructions of the Board provided that no such order, direction or instruction shall be given by the Board so as to interfere with the discretion of an officer in deciding the issues or matters brought before him for adjudication under this Act or rules made thereunder.

43. Removal of difficulties and condonation of time limit etc.—

(1) If any difficulty or situation arises in giving effect to or applying the provisions of this Act or the rules made or notifications issued thereunder, the Board may, through a general order or otherwise, issue instructions or directions for such actions to be taken by an officer of Federal Excise or any other person as it considers necessary or expedient for the purpose of removing the difficulty or tackling such situation and every such officer or person shall be bound to comply with such instructions or directions in such manner as may be specified therein.

(2) Where any time or period has been specified under any of the provisions of this Act or rules made thereunder within which any application is to be made or any act or thing is to be done, the Board may, in any case or class of cases, permit such application to be made or such act or thing to done within such time or period as it may consider appropriate provided that the Board may subject to such limitations or conditions as may be specified therein, empower any Collector or other officer of Federal excise to exercise the powers under this sub-section in any case or class of cases.

44. Refund of duty.—

(1) No refund of any amount of duty accrued for any reason under this Act or rules made thereunder shall be allowed unless claimed within one year of its accrual.

(2) In a case where a registered person did not avail adjustment of duty admissible at the relevant time, the Collector may allow such person to avail the adjustment at any subsequent time provided that claim for such adjustment is made within a period of one year from the date on which it was admissible.

(3) In a case where claim for refund or adjustment has accrued in consequence of any decision or judgement of any Federal Excise Officer, the Tribunal or Court, the period of one year, for the purpose of this section, shall be computed from the date of such decision or judgement.

45.Access to records and posting of excise staff, etc.—

(1) A person who is required to maintain any record or documents under this Act or any other law shall, as and when required by the Federal Excise Officer produce record or documents which are in his possession or control or in the possession or control of his agent and where such record or documents have been kept on electronic data, he shall allow access to such officer to have access and use of any machine on which such data is kept and shall facilitate such officer to retrieve whole or part of such data in such manner and to such extent as may be required by him.

(2) Subject to such conditions and restrictions, as deemed fit to specify, the Board may, post officer of Federal Excise to the premises of registered person or class of such persons to monitor production, removal or sale of goods and the stock position or the maintenance of records:

Provided that if a Collector, on the basis of material evidence, has reason to believe that a registered person is involved in evasion of duty, he may, by recording the reason in writing, post an officer of Federal Excise to the premises of such registered person to monitor production, removal or sale of goods and the stocks position or maintenance of records.

46.Departmental Audit.—

(1) The Federal Excise Officer authorized by the Board by designation may, once in a year, after giving advance notice in writing, conduct audit of the records and documents of any person registered under this Act.

(2) In case the Collector has information or sufficient evidence showing that such registered person is involved in fraud or evasion of duty, he may authorize a Federal Excise Officer, not below the rank of Assistant Collector, to conduct audit at any time in a year.

(3) Notwithstanding the penalties prescribed in section 19, if a registered person wishes to deposit the amount of duty not paid, short paid or the amount of duty evaded along with default surcharge voluntarily, whenever it comes to his notice, before commencement of audit, no penalty shall be recovered from him:

Provided that if a registered person wishes to deposit the amount of duty not paid, short paid or amount of duty evaded along with default surcharge during or after the audit but before the conclusion of original adjudication proceedings, he may deposit such amount alongwith twenty five percent of the amount of penalty prescribed under this Act or the rules made thereunder and in such case, further proceedings in the case shall abate.

(4) The Board may appoint a Chartered Accountant or a Cost and Management Accountant or a firm of such accountants to conduct audit of a person liable to pay duties under this Act in such manner and subject to such conditions it may specify.

(5) The audit of the registered person shall generally be a composite audit covering all duties and taxes to which his business or activity is liable under the laws administered by the Board.

47. Service of order, decisions, etc.––

Any adjudication order or decision made or any summons or notice issued under this Act shall be served,–

(a) by tendering the adjudication order, decision, summons or notice or sending it by registered post or courier service to the person for whom its is intended; or

(b) if the adjudication order, decision, summons or notice cannot be served in any manner provided in clause (a), by affixing it on the notice board of the concerned Federal Excise Office.

48. Repeal.–

(1) Subject to the provisions of sub-section (2), the Central Excises Act, 1944 (I of 1944) shall stand repealed with effect from the date notified under sub-section (3) of section 1.

(2) Unless otherwise directed by the Federal Government, in case of area where the repealed Act was extended through an order by a Governor of the Province or otherwise through an order by any other authority, the application of the repealed Act shall continue to be in force till this Act is made applicable in that area.

TABLE I

(EXCISABLE GOODS)

S.No.	Description of goods	Heading/ sub-heading Number		Rate of duty
(1)	(2)	(3)		(4)
1	Edible oils excluding epoxidized soyabean oil falling under heading 15.18.	15.07, 15.08, 15.09, 15.10, 15.11, 15.12, 15.13, 15.14, 15.15, 15.16, 15.17 and 15.18		Fifteen per cent ad val.
2	Vegetable ghee and cooking oil.	Respective headings		Fifteen per cent ad val.
3	Concentrates for aerated beverages in all forms including syrup form	2106.9010		Fifty per cent ad val.
4	Aerated waters	2201.1020		Twelve per cent of retail price.
5	Aerated waters, containing added sugar or other sweetening matter or flavoured	2202.1010		Twelve per cent of retail price.
6	Aerated waters if manufactured wholly from juices or pulp of indigenous vegetables, food grains or fruits and which do not contain any other ingredient, indigenous or imported, other than sugar, colouring materials, preservatives or additives in quantities prescribed under the West Pakistan Pure Food Rules, 1965	Respective Headings		Ten per cent of retail price.
7	Unmanufactured tobacco.	24.01		Five rupee per kilogram.
8	Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.	24.02		Sixty three per cent of retail price.
9	Locally produced cigarettes if their retail price exceeds thirteen rupees per ten cigarettes.	24.02		Sixty three per cent of retail price.
10	Locally produced cigarettes if their retail price exceeds five rupees and seventy-four paisa per ten cigarettes but does not exceed thirteen rupees per ten cigarettes.	24.02		Two rupee and forty five paisa per ten cigarettes plus sixty nine per cent per incremental rupee or part thereof.
11	Locally produced cigarettes if their retail price does not exceed five rupees and seventy-four per ten cigarettes.	24.02		Two rupee and forty five paisa per ten cigarettes.
12	Cigarettes manufactured by a manufacturer who remains engaged on and after the 10th June, 1994, either directly or through any other arrangement, in the manufacture of any brand of cigarette in non-tariff areas	24.02		Sixty three per cent of retail price.
13	Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers.	25.23		Seven hundred and fifty rupees per metric ton.
14	Motor spirit	2710.1110.		Eighty eight paisa per litre.
15	Aviation spirit	2710.1120.		Eighty eight paisa per litre.
16	Spirit type jet fuel	2710.1130		Eighty eight paisa per litre.
17	Solvent oil (non-composite)	2710.1150		Thirteen rupee per litre.
18	Other	2710.1190		Eighty eight paisa per litre.
19	J.P.1	2710.1912		Six paisa per litre.
20	Other jet fuels	2710.1919		Six paisa per litre.
21	Other fuel oils	2710.1949		One hundred eighty five rupees per metric ton.
22	Lubricating oil in packs not exceeding 10 litres	2710.1951		Seven rupees and fifteen paisa per litre.
23	Lubricating oil in packs exceeding 10 litres	2710.1952		Seven rupees and fifteen paisa per litre.
24	Lubricating oil in bulk (vessels, bouzers, lorries etc)	2710.1953		Seven rupees and fifteen paisa per litre.
25	Lubricating oil if manufactured from reclaimed oils or sludge or sediment	Respective headings		Five rupee per litre.
26	Mineral greases	2710.1992		Twenty five rupees per kilogram.
27	Base lube oil	2710.1993		Seven rupees and fifteen paisa per litre.
28	Transformer oil	2710.1997		Ten percent of the retail price or seven rupees and fifteen paisa per litre, whichever is higher.
29	Other mineral oils excluding sewing machine oil	2710.1999		Fifteen per cent ad val.
30	Waste oil	2710.9100 and 2710.9900		Ten per cent of the retail price or seven rupees and fifteen paisa per litre, whichever is higher.
31	Liquified natural gas	2711.1100		Seven rupees and eighteen paisa per hundred cubic metres.
32	Liquified propane	2711.1200		Seven rupees and eighteen paisa per hundred cubic metres.
33	Liquified butanes	2711.1300		Seven rupees and eighteen paisa per hundred cubic metres.
34	Liquified ethylene, propylene, butylenes and butadiene	2711.1400		Seven rupees and eighteen paisa per hundred cubic metres.
35	Other liquefied petroleum gases and gaseous hydrocarbons	2711.1900		Seven rupees and eighteen paisa per hundred cubic metres.
36	Natural gas in gaseous state	2711.2100		Five rupee and nine paisa per Million British Thermal Unit (MMBTu.).
37	Other petroleum gases in gaseous state	2711.2900		Five rupee and nine paisa per Million British Thermal Unit (MMBTu.).
38	Petroleum Bitumen (Bitumen and Asphalt) including bituminous mixtures:	27.13, 27.14 and 27.15
	(i) Blown grade			(i) Three thousand one hundred and fifty rupees per metric tonne.
	(ii) Paving grade without further process.			(ii) One thousand eight hundred rupees per metric tonne.
	(iii) Other			(iii) Three thousand one hundred and fifty rupees per metric tonne.
39	Carbon black oil (carbon black feedstock) including residue carbon oil	2707.9910, 2713.9010 and 2713.9020		Seven rupee and fifteen paisa per litre.
40	Methyl tertiary butyle ether (MBTE)	2909.1910		Eighty eight paisa per litre.
41	Flavours and concentrates for use in aerated beverages	3302.1010		Fifty per cent ad val.
42	Perfumes and toilet waters:	3303.0000	Ten per cent of retail price if packed in retail packing and Ten per cent ad valorem if in bulk
43	Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), including sunscreen or sun tan preparations; manicure or pedicure preparations.	33.04	Ten per cent of retail price if packed in retail packing and ten per cent ad valorem if in bulk
44	Preparations for use on the hair excluding herbal hair oil and kali mehndi	33.05	Ten per cent of retail price if packed in retail packing and ten per cent ad valorem if in bulk
45	Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included; prepared room deodorisers, whether or not perfumed or having disinfectant properties (excluding agarbatti and other odoriferous preparations which operate by burning).	33.07	Ten per cent of retail price if packed in retail packing and ten per cent ad valorem if in bulk
46	Greases	3403.1910		Twenty five rupees per kilogram.
47	Organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers.	3814.0000
	(i) Solvent oil (composite)			Thirteen rupee per litre.
	(ii) Other (excluding thinners)			Ten per cent of retail price.

Interpretation.––

(1) Unless the intent appears otherwise, for the purpose of levy of duty of excise, the description of goods shall prevail upon the tariff classification. However in order for interpretation of description of any goods or verification of any characteristics of any product, the reliance shall be made on the relevant version of the Explanatory Notes to the Harmonized Commodity Description and Coding System.

(2) The rate of duty mentioned in column (4) of the above table shall also apply on the goods mentioned in column (2) thereof, if imported, or brought from non-tariff to tariff areas in case of notified goods.

TABLE II

(EXCISABLE SERVICES)

S.No	Description of Services	Heading/Sub-heading Number	Rate of duty
(1)	(2)	(3)	(4)
1	Advertisement on closed circuit T.V.	9802.3000	Fifteen per cent of the charges.
2	Advertisements on cable T.V. network.	9802.5000	Fifteen per cent of the charges.
3	Facilities for inland travel	98.03
	(i) Travel by air	9803.1000	Fifteen per cent of the charges.
	(ii) Travel by train in Airconditioned sleeper class	9803.2010	Twelve and half per cent of the charges.
	(iii) Travel by train in Airconditioned parlour class (sitter)	9803.2020	Twelve and half per cent of the charges.
	(iv) Travel by train in First class (sleeper)	9803.2030	Twelve and half per cent of the charges.
4	Inland carriage of goods by air	9804.1000	Fifteen per cent of the charges.
5	Shipping agents.	9805.1000	i) Two hundred rupees per house-bill of lading issued in case of Non-Vessel Operating Common Carriers (NVOCC), International Freight Forwarders and Slot Carriers ii) Fifteen per cent of the charges in case of other categories of shipping agents.
6	Services provided or rendered by persons engaged in telecommunication work in respect of telephone, telegraph, telex, telefax and alike:	98.12
	(i) Telephone	9812.1000	Fifteen per cent of the charges.
	(ii) Telegraph	9812.2000	Fifteen per cent of the charges.
	(iii) Telex	9812.3000	Fifteen per cent of the charges.
	(iv) Telefax	9812.4000	Fifteen per cent of the charges.
	(v) Other	9812.9000	Fifteen per cent of the charges.
	Explanation:- (1) The sub-head “Other” includes the following services, namely:– (a) Telephone cards including payphone cards and pre-paid calling cards. (b) Wireless Local Loop (WLL). (c) Very small aperture terminal (VSAT) services (Voice based). (d) Voice cast (voice broadcasting service). (e) Installation of telephone connection. (f) Shifting of telephone connection. (g) Restoration of telephone connection. (h) Conversion of telephone connection into subscriber turn dialing/non-subscriber telephone dialing. (i) Provision of extension of telephone connection. (j) Changing of telephone connection. (k) Cost of telephone set. (2) The persons or companies other than Pakistan Telecommunication Corporation Limited (PTCL), engaged in telecommunication services shall pay duty at the rate specified in column (4) on charges excluding the charges billed by PTCL.
7	Services provided or rendered in respect of goods insurance.	9813.1010	Three per cent of the premium paid.
8	Services provided or rendered in respect of other insurance.	9813.1090	Three per cent of the premium paid

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SECOND SCHEDULE

(Goods on which duty is collectible under sales tax mode with entitlement for adjustment with sales tax and vice versa)

S.No	Description of Goods	Heading/sub-heading number
(1)	(2)	(3)
1	GOODS Edible oil excluding epoxidized soyabean oil falling under heading 15.18.	15.07, 15.08, 15.09, 15.10, 15.11, 15.12, 15.13, 15.14, 15.15, 15.16, 15.17 and 15.18
2	Vegetable ghee and cooking oil.	Respective headings.

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THIRD SCHEDULE

TABLE-I

(Goods)

S.No.	Description of goods	Heading/ sub-heading Number
(1)	(2)	(3)
1	Crude vegetable oil, if obtained from the locally grown seeds excluding cooking oil, without having undergone any process other than the process of washing.	15.07, 15.08, 15.09, 15.10, 15.11, 15.12, 15.13, 15.14, 15.15, 15.16, 15.17 & 15.18
2	Non-aerated beverage concentrate if used in the manufacture of non-aerated drinks or aerated waters manufactured wholly from juices or pulp of indigenous vegetables, food grains or fruits and which do not contain any other ingredient, indigenous or imported, other than sugar, colouring materials, preservatives or additives prescribed under the West Pakistan Pure Food Rules, 1965	21.06
3	Unmanufactured tobacco or tobacco refuse if used for the purposes other than the manufacture of cigarettes, smoking mixtures for pipes and cigarettes and cigars and cheroots	24.01
4	Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes,–	24.02
	(i) If supplied to Pakistan Navy for consumption by its personnel on board its vessels (ii) If made by hand in tapered shape of biris without the use of any manual or power-operated machine in any process of their manufacture (iii) If supplied for consumption by the President of Pakistan, the President of Azad Jammu & Kashmir and the Governors of the Provinces, members of their families and guests provided that the cigarettes are manufactured and supplied on the specific written orders of the competent official authority and the cigarettes and their packets are special-crested for the respective privileged House. (iv) If supplied against payment in foreign exchange, to M/s Duty Free Shops Ltd for sale in its Duty Free Shops and on board international flight by the Pakistan International Airlines subject to the same conditions and procedures as are applicable for the purposes of exemption of customs duty.

5	Hydraulic cement imported or purchased locally by petroleum or energy sector companies or projects subject to the same conditions and procedures as are applicable for the purposes of exemption of customs duty.	2523.9000
6	Motor spirit,– (i) If supplied to Pakistan Navy for consumption in its vessels (ii) If supplied for consumption by the International Bank for Reconstruction and Development in its official cars	2710.1110
7	Lubricating oil if supplied to Pakistan Navy for consumption in its vessels
8	Transformer oil if used in the manufacture of transformers supplied against international tenders to a project financed out of funds provided by the international loan or aid giving agencies.	Respective heading
9	Sludge and sediment recovered from storage tanks of the incoming vessels or ships meant for breaking	2710.9900
10	Natural gas if produced and used in the same field for drilling, production, pressure maintenance or in any other joint operations including flaring in the same field. Explanation.- For the purpose of this entry, "Joint Operations" means all marine and land activities, including gas exploration, prospection, development and production activities conducted by Working Interest Owners under a petroleum concession agreement with the Government	2711.2100
11	Goods,– (i) If donated to the President's Funds for Afghan Refugees, Assistance to Palestine and Famine Relief for Africa, provided that before making such donation the manufacturer or importer shall inform in writing to the Collector of Federal Excise or as the case may be, Collector of Customs about quantity, value and the duty involved on such goods and shall in case of imports, fulfill the conditions and comply with the procedures specified for the purposes of exemption from customs duty. (ii) If purchased by the Cabinet Division, Government of Pakistan, for donation to a foreign country in the event of natural disasters as certified by the Emergency Relief Cell of that Division. (iii) If supplied against international tender issued by UNICEF, UNDP, WHO, WFP, UNHCR, International Red Cross or any other relief agency, for Afghan Refugees subject to the conditions given below, namely,- (a) payment for the supply shall be received in foreign currency, which shall be surrendered to the State Bank of Pakistan and the supplier shall receive payment in Pak rupees as per State Bank procedure and foreign exchange regulations; (b) the goods shall be duly received by the organization which signed the contract, and a certificate to this effect shall be issued by the organization which shall be duly attested by the Chief Commissioner/ Commissioner of Afghan Refugees and will be submitted by the manufacturer to the Collector of Federal excise; and (c) the registered person shall retain the relevant documents and certificates in record. (iv) If supplied as ship stores to ships and aircrafts leaving for abroad subject to the satisfaction of the Collector of Customs in terms of section 24 of the Customs Act, 1969.	Respective headings
12	Goods imported or supplied under grants-in-aid for which a specific consent has been obtained from the Central Board of Revenue.
13	Goods if imported as bonafide baggage.
14	Goods if imported by Duty Free Shops as baggage free of custom duty, regulatory duty and sales tax under the baggage rules made under the Customs Act, 1969 (IV of 1969).
15	Any goods which are manufactured, produced in-house by a registered person and used for the manufacture and production of goods on which duty of excise is paid by such person. EXPLANATION.– Exemption under this entry shall also be admissible on unmanufactured tobacco purchased and used after necessary treatment in the manufacture of cigarettes and other excisable tobacco products.

TABLE-II

(Services)

S.No	Description of Services	Heading/sub-heading number
(1)	(2)	(3)
1	Advertisements financed out of funds provided under grants-in-aid agreements.	Respective sub-heading of Heading 98.02
2	Telecommunication services: (i) Such charges as are billed by persons providing internet services and are in excess of the duty-paid charges of Pakistan Telecommunication Corporation Limited included in the bill (ii) Such charges payable on the international leased lines of the Pakistan Telecommunication Corporation Limited used by-- (a) software exporting firms registered with the Pakistan Software Export Board; and (b) data and internet service providers licensed by the Pakistan Telecommunication Authority. (iii) Such amount received by the Long Distance International license holders including Pakistan Telecommunication Company Limited on international incoming calls under agreements with the foreign telecommunication companies (iv) Pager service	Respective sub-heading of Heading 98.12
3	Marine insurance for export.	9813.1000.”,

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