The Federal Excise Act, 2005 1st July 2007

The
Federal Excise Act, 2005

1st July 2007

With amendments made through Finance Act 2007
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.- (1) This Act may be called the Federal Excise Act, 2005,
(2) It extends to the whole of Pakistan
(3) It shall come into force on 1st day of July, 2005.

2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,
(1) “adjudicating authority” means any authority competent to pass any order or decision under this Act or the rules made thereunder, but does not include the Board or Appellate Tribunal;
(2) “adjustment” means deduction of amount of duty paid on goods used in the manufacture or production of other goods from the amount of duty payable on such other goods in the prescribed manner;
(3) “Appellate Tribunal” means the Customs, Excise and Sales Tax Appellate Tribunal constituted under section 194 of the Customs Act, 1969 (IV of 1969);
(4) “Board” means the Central Board of Revenue established under the Central Board of Revenue Act, 1924 (IV of 1924) and on the commencement of the Federal Board of Revenue Act, 2007, the Federal Board of Revenue established under section 3 thereof.
(5) “Collector” means an officer of Federal Excise notified as Collector of Federal Excise under this Act;
(6) “conveyance” means any means of transport used for carrying goods or passengers such as vessel, aircraft, vehicle or animal etc.;
(7) “default surcharge” means surcharge levied under section 8;
(8) “distributor” means a person appointed by a manufacturer in or for a specified area to purchase goods from him for sale to a wholesale dealer in that area;
(8a) “due date”, in relation to furnishing a return under section 4, means the 15th day of the month following the end of the month, or such other date as the Federal Government may, by notification in the official Gazette, specify.]
(8b) “dutiable goods” means all excisable goods specified in the First Schedule except those which are exempt under section 16 of the Act;
(8c) “dutiable supply” means a supply of dutiable goods made by a manufacturer other than a supply of goods which is exempt under section 16 of the Act;
(8d) “dutiable services” means all excisable services specified in the First Schedule except those which are exempt under section 16 of the Act;]
(8e) “duty” means any sum payable under the provisions of this Act or the rules made thereunder and includes the default surcharge and the duty chargeable at the rate of zero per cent;
(9) “duty due” means duty in respect of clearances made during a month and shall be paid on the last day of that month;]
(10) “establishment” includes an undertaking, firm or company, whether incorporated or not, an association of persons and an individual;
(11) “factory” means any premises, including the precincts thereof, wherein or in any part of which goods are manufactured, or wherein or in any part of which any manufacturing process connected with the production of the goods is being carried on or is ordinarily carried on; Inserted vide Finance Act, 2006. Inserted vide Finance Act, 2007. Inserted vide Finance Act, 2006.

(12) “Federal Excise Officer” means any officer of the Federal Excise Department, or any person (including an officer of the Provincial Government) invested by the Board with any of the powers of a Federal Excise Officer under this Act or rules made thereunder;
(13) “goods” means goods leviable to excise duty under this Act or as specified in the First Schedule and includes goods manufactured or produced in non-tariff area and brought for use or consumption to tariff area;
(14) “goods insurance” includes fire, marine, theft, accident and other such miscellaneous insurance;
(15) “import” and “export” mean respectively bringing into, and taking out of Pakistan by sea, land or air and shall be deemed to have always been so defined;
(16) “manufacture” includes,
(a) any process incidental or ancillary to the completion of a manufactured product;
(b) any process of re-manufacture, remaking, reconditioning or repair and the processes of packing or repacking such product, and, in relation to tobacco, includes the preparation of cigarettes, cigars, cheroots, biris, cigarette and pipe or hookah tobacco, chewing tobacco or snuff, and the word “manufacturer’ shall be construed accordingly and shall include,
(i) any person who employs hired labour in the production or manufacture of goods; or
(ii) any person who engages in the production or manufacture of goods on his own account if such goods are intended for sale; and
(c) any person who, whether or not he carries out any process of manufacture himself or through his employees or any other person, gets any process of manufacture carried out on his behalf by any person who is not in his employment:
Provided that any person so dealing in goods shall be deemed to have manufactured for all purposes of this Act, such goods in which he deals in any capacity whatever;

(16a) “non-fund banking services” includes all non-interest based services provided or rendered by the banking companies or non-banking financial institutions against a consideration in the form of a fee or commission or charges;
(17) “non-tariff area” means Azad Jammu and Kashmir, Northern Areas and such other territories or areas to which this Act does not apply;
(18) “person” includes a company, an association, a body of individuals, whether incorporated or not, a public or local authority, a Provincial Government or the Federal Government;
(19) “prescribed” means prescribed under this Act or by rules made thereunder;
(20) “registered person” means a person who is registered or is required to be registered under this Act provided that a person who is not registered but is required to be registered shall not be entitled to any benefit or privilege under this Act or rules made thereunder, unless he is registered and such benefit and privilege, unless allowed by Board, shall be confined to period of registration;
(21) “sale” and “purchase” with their grammatical variations and cognate expressions, mean any transfer of the possession of goods or rendering and providing of services by one person to another in the ordinary course of trade or business for cash or deferred payment or other consideration;
(21a) “sales tax mode” means the manner of collection and payment under the Sales Tax Act, 1990, and rules made thereunder, of the duties of excise chargeable under this Act specified to be collected and paid as if such duties were tax chargeable under section 3 of the said Act and all the provisions of that Act and rules, notifications, orders and instructions made or issued thereunder shall, mutatis mutandis, apply to the excise duty so chargeable;”; and
(22) “Schedule” means the schedule appended to this Act;
(23) “services” means services, facilities and utilities leviable to excise duty under this Act or as specified in the First Schedule read with Chapter 98 of the Pakistan Customs Tariff, including the services, facilities and utilities originating from Pakistan or its tariff area or terminating in Pakistan or its
(23a) “supply” includes sale, lease or other disposition of goods and shall include such transaction as the Federal Government may notify in the official Gazette from time to time;
(24) “tariff area” means area other than the non-tariff area;
(25) “wholesale dealer” means a person who buys or sells goods wholesale for the purpose of trade or manufacture, and includes a broker or commission agent who, in addition to making contracts for the sale or purchase of goods for others, stocks such goods belonging to others as an agent for the purpose of sale; and
(26) “zero-rated” means duty of Federal excise levied and charged at the rate of zero per cent under section 5 of this Act.

CHAPTER II
LEVY, COLLECTION AND PAYMENT OF DUTY
3. Duties specified in the First Schedule to be levied.- (1) Subject to the provisions of this Act and rules made thereunder, there shall be levied and collected in such manner as may be prescribed duties of excise on,
(a) goods produced or manufactured in Pakistan;
(b) goods imported into Pakistan;
(c) such goods as the Federal Government may, by notification in the official Gazette, specify, as are produced or manufactured in the non-tariff areas and are brought to the tariff areas for sale or consumption therein; and
(d) services, provided or rendered in Pakistan; at the rate of 1 [fifteen] per cent ad valorem except the goods and services specified in the First Schedule, which shall be charged to Federal excise duty as, and at the rates, set-forth therein.
(2) Duty in respect of goods imported into Pakistan shall be levied and collected in the same manner and at the same time as if it were a duty of customs payable under the Customs Act, 1969 (IV of 1969), and the provisions of the said Act including section 31A thereof shall apply.
(3) The Board may, by notification in the official Gazette, in lieu of levying and collecting under sub-section (1) duties of excise on goods and services, as the case may be, levy and collect duties,
(a) on the production capacity of plants, machinery, undertakings, establishments or installations producing or manufacturing such goods; or
(b) on fixed basis, as it may deem fit, on any goods or class of goods or on any services or class of services, payable by any establishment or undertaking producing or manufacturing such goods or providing or rendering such services.
(4) Without prejudice to other provisions of this Act, the Federal Government may levy and collect duty on any class or classes of goods or services by notification in the official Gazette at such higher or lower rate or rates as may be specified in such notification.
Explanation.- Subject to sub-section (1), for the purpose of this section, “goods” means the goods specified in CHAPTERS 1 TO 97 and “services” means the services specified in CHAPTER 98 of the First Schedule to the Customs Act, 1969 (IV of 1969).
(5) The liability to pay duty shall be
(a) in case of goods produced or manufactured in Pakistan, of the person manufacturing or producing such goods;
(b) in case of goods imported into Pakistan, of the person importing such goods;
(c) in case of services provided or rendered in Pakistan, of the person providing or rendering such service; and
(d) in case of goods produced or manufactured in non-tariff areas and brought to tariff areas for sale or consumption therein, of the person bringing or causing to bring such goods to tariff areas.

3A. Special excise duty.- (1) The Federal Government may, by notification in the official Gazette, levy and collect, subject to such conditions, limitations or restrictions as it may deem fit to impose, special excise duty on any,
(a) goods produced or manufactured in Pakistan; and
(b) goods imported into Pakistan; at the rate of one percent of the value of such goods.
(2) Special duty levied under sub-section (1) shall be in addition to any duty levied under section 3.

4. Filing of return and payment of duty etc.- 3[(1) 4[For every month, a registered person] shall furnish not later than the due date a true and correct return in such manner and form as may be prescribed by the Board by notification in the official Gazette.
(2) Duty due for the dutiable supplies made or services rendered during a month shall be deposited by the registered person in the designated branch of the bank at the time of filing of his return under sub-section (1):
Provided that the Board may, by notification in the official Gazette, prescribe any other manner of depositing the duty.
(3) If during any month, there is a change in the rate of duty, a separate return showing the application of different rates of duty shall be used in respect of each portion of such month.
(4) A registered person may, subject to approval of the Collector of Federal Excise having jurisdiction, file a revised return within ninety days of the filing of return under sub-section (1), to correct any omission or wrong declaration made therein.
(5) The Board may, by notification in the official Gazette, require any person or class of persons for any goods or class of goods to furnish such summary or details of particulars pertaining to imports, purchases, utilization, consumption, production, sales or disposal of such goods during any month or months in such format and manner as may be specified and provisions of this sub-section may be invoked mutatis mutandis in respect of services.
(6) The Board may by an order, specify the manner and procedure for filing of return for the purpose of this Act or rules made thereunder and for payment of duty by electronic means. The Board may specify the manner and procedure for the submission, receipt and transmission of any information for the purpose of this Act or rules made thereunder by electronic means.
(7) Every amount of duty due from any person on any other account shall also be deposited on the prescribed 3[return] in the bank branch designated and in the same manner as aforesaid.

5. Zero rate of duty and drawback of duty etc.- (1) Notwithstanding the provisions of section 3, the goods exported out of Pakistan or such goods as may be, by a notification in the official Gazette, specified by the Federal Government shall be charged to duty at the rate of zero per cent and adjustment of duty in terms of section 6 shall be admissible on such goods.
(2) The Board may, by notification in the official Gazette, grant drawback of duty paid on any goods used in the manufacture of any goods manufactured in and exported out of Pakistan, or shipped as provisions or stores for consumption on board a ship or aircraft proceeding to a destination outside Pakistan, at such rate or rates and subject to such conditions and limitations as may be specified in the notification.
(3) Notwithstanding anything in sub-sections (1) and (2), the Board may, by notification in the official Gazette, prohibit the payment of drawback, refund or adjustment of duty upon the exportation of goods or any specified goods or class of goods to any specified foreign port or territory.

6. Adjustment of duties of excise.- (1) For the purpose of determining net liability of duty in respect of any goods, the duty already paid on goods specified in the First Schedule and used directly as input goods for the manufacture or production of such goods shall be deducted from the amount of duty calculated on such goods.
(2) Adjustment of duty of excise under sub-section (1) shall be admissible only if a person registered under this Act holds a valid proof to the effect that he has paid the price of goods purchased by him including the amount of duty and received the price of goods sold by him including the amount of duty through banking channels including online payment whether through credit card or otherwise.
(3) Notwithstanding the provisions of sub-section (1), the Board may, by a notification in the official Gazette, disallow or restrict whole or part of the amount of or otherwise regulate the adjustment of duty in respect of any goods or class of goods.

7. Application of the provisions of the Sales Tax Act, 1990.- In case of goods specified in the Second Schedule or such services as may be specified by the Board through a notification in the official Gazette 1 [“the duty shall be payable in sales tax mode, whereby”],
(a) a registered person manufacturing or producing such goods or providing or rendering such services shall be entitled to deduct input tax paid during the tax period from the amount of duty of excise due from him on such goods or services in respect of that tax period;
(b) a registered person shall be entitled to deduct the amount of duty of excise paid or payable by him on such goods or services as are acquired by him during a tax period from the output tax due from him in respect of that tax period;
(c) a registered person supplying such goods or providing or rendering such services shall be entitled to deduct duty of excise paid or payable on such goods or services as are acquired by him during the tax period from the amount of duty of excise due from him on such goods manufactured or produced or services as are provided or rendered by him during that period; and
(d) a person shall be entitled to deduct duty of excise paid or payable, on such goods or services as are acquired by him during a month, from the amount of duty of excise due from him on such goods manufactured or produced or such services as are provided or rendered by him, during that month.
Explanation.- For the purposes of this section, the expressions “input tax”, “output tax” and “tax period” shall have the same meanings as are assigned to them in the Sales Tax Act, 1990

8. Default surcharge.- If a person fails to pay the duty within the prescribed time, he shall, in addition to the duty payable under section 3, be liable to pay default surcharge at the rate of one per cent per month for the first six months and at the rate of one and half per cent per month thereafter.
Explanation.- For the purpose of this section, the period of default shall be reckoned from the day following the due date on which the duty was payable to the preceding day on which the duty is actually paid.

9. Liability for payment of duty in the case of private companies or business enterprises or in case of sale of business ownership.- (1) Notwithstanding anything contained in any other law for the time being in force, where any private company or business enterprise is closed or discontinued or otherwise ceases to exist and any amount of duty chargeable on the company or business enterprise, whether before, or in the course of, or after its liquidation cannot be recovered from the company or business enterprise, every person who was a owner of, or partner in, or director of, the company or business enterprise shall, jointly and severally with such persons, be liable for the payment of such duty.
(2) In the case of sale or transfer of ownership of a business or part thereof involving any charge of duty to another person as an ongoing concern, the chargeable duty shall be paid by the person to whom such sale is made or ownership is transferred provided that if any amount of duty payable by such person remains unpaid, such unpaid amount of duty shall be the first charge on the assets of the business and shall be payable by the transferee of business:
Provided that no business enterprise or a part thereof shall be sold or transferred unless the outstanding duty is paid and a no objection certificate in this behalf from the Collector concerned is obtained.
(3) In case of termination of a business or part thereof involving any outstanding charge of duty, a person terminating such business or part thereof shall be required to account for and pay the outstanding charge of duty as if no such termination has taken place.

10. Applicable value and rate of duty.- The value and the rate of duty applicable to any goods or services shall be the value, retail price, tariff value and the rate of duty in force,
(a) in the case of goods, on the date on which the goods are 1 [supplies] for export or for home consumption;
(b) in the case of services, on the date on which the services are provided or rendered; and
(c) in the case of goods produced or manufactured outside the areas to which this Act has been applied and brought to such areas for sale or consumption therein, the date on which the goods are brought to those areas.

11. Collection of excess duty etc.- Every person who for any reason whatever has collected or collects any duty, which is not payable as duty or which is in excess of the duty actually payable and the incidence of which has been passed on to the consumer, shall pay the amount so collected to the Federal Government and all the provisions of this Act or rules made thereunder shall apply for the recovery of such amount and claim for refund of any such amount paid or recovered shall not be admissible on any ground whatever.

12. Determination of value for the purposes of duty.- (1) Where any good is liable to duty under this Act at a rate dependent on its value, duty shall be assessed and paid on the basis of wholesale cash price of that goods and where such price is not available, of identical or similar goods, on which the goods are capable of being sold to a general body of retail traders and if there is no such body, to the general body of consumers on the day of its sale, without any deduction whatever except the amounts of duty and sales then payable.
(2) Where any services are liable to duty under this Act at a rate dependent on the charges therefor, the duty shall be paid on total amount of charges for the services including the ancillary facilities or utilities, if any, irrespective whether such services have been rendered or provided on payment of charge or free of charge or on any concessional basis.
(3) Where any goods are chargeable to duty at the import stage, duty will be assessed and paid on the value determined in accordance with section 25 of the Customs Act, 1969 (IV of 1969), including customs duties payable thereon.
(4) Where any good is chargeable to a duty on the basis of retail price, duty thereon shall be paid on the retail price fixed by the manufacturer, inclusive of all 2[duties,] charges and taxes, other than sales tax levied and collected under section 3 of the Sales Tax Act, 1990, at which any particular brand or variety of such goods should be sold to the general body of consumers or, if more than one such price is so fixed for the same brand or variety, the highest of such price and such retail price shall, unless otherwise directed by the Board, be legibly, prominently and indelibly indicated on each good, packet, container, package, cover or label of such goods:
Provided that where so and as specified by the Board, any goods or class of goods liable to duty on local production as percentage of retail price, the provisions of this sub-section shall mutatis mutandis apply in case such goods are imported from abroad.
(5) The Board may fix the minimum price of any goods or class of goods, for the purpose of levying and collecting of duty and duty on such goods shall be paid accordingly
Provided that, where the price at which the goods or class of goods are sold, is higher than the price fixed by the Board, the duty shall, unless otherwise directed by the Board, be levied and collected at such higher price.

13. Registration.- (1) Any person engaged in the production or manufacture of goods or providing or rendering services liable to duty of excise under this Act shall, unless otherwise specified, be required to obtain registration in the prescribed manner regardless of his annual turnover or volume of sales of such goods or services.
(2) Where a person who is already registered under the Sales Tax Act, 1990, shall not be required to take separate registration for excise purpose and his sales tax registration shall be deemed to be a registration for the purpose of this Act:
Provided that provisions of the Sales Tax Act, 1990, including those relating to exemption threshold shall not apply where a person obtains or is liable to obtain registration for the purposes of this Act but does not have or is not liable to registration under the Sales Tax Act, 1990.

14. Recovery of unpaid duty or of erroneously refunded duty or arrears of duty, etc.-(1) Where any person has not levied or paid any duty or has short levied or short paid such duty or where any amount of duty has been refunded erroneously, such person shall be serviced with notice requiring him to show cause for payment of such duty provided that such notice shall be issued within three years from the relevant date.
(2) The Federal Excise Officer, empowered in this behalf, shall after considering the objections of the person served with a notice to show cause under sub-section (1), determine the amount of duty payable by him and such person shall pay the amount so determined along with default surcharge and penalty as specified by such officer under the provisions of this Act.
(3) Where any amount of duty levied and penalty imposed or any other amount payable under this Act is due from any person, such amount or sum shall be recovered in such manner as is prescribed under this Act or rules made thereunder.
(4) Notwithstanding anything contained under any other law for the time being in force, where any business or activity involving liability to charge, levy and pay duty under this Act is sold, discontinued or liquidated, the amount of unpaid or recoverable duty shall be the first charge on the assets of the business.
Explanation.-For the purpose of this section, the expression “relevant date” means the date on which the payment of duty was due under sub-section (3) and in case where any amount of duty has been erroneously refunded, the date of its refund.
(14A) Short paid amounts recoverable.-Notwithstanding the provisions of this Act or the rules made thereunder, where a registered person pays the amount of duty less than the duty due as indicated in his return, the short paid amount of duty alongwith default surcharge shall be recovered from such person by stopping removal of any goods from his business premises and through attachment of his business bank accounts without prejudice to any other action under this Act or the rules made thereunder:
Provided that no penalty under this Act or rules made thereunder shall be imposed unless a show use notice is given to such person.

15. Application of the Customs Act, 1969 (IV of 1969) to Federal excise duties.- The Federal Government may, by notification in the official Gazette, declare that any or all of the provisions of the Customs Act, 1969 (IV of 1969), shall, with such modifications and alterations it may specify, consider necessary or desirable to adapt them to the circumstances, be applicable in regard to like matters in respect of the duties levied by sections 3 and 8.

16. Exemptions.- (1) All goods imported, produced or manufactured in Pakistan and services provided or rendered except such goods and services as are specified in the First Schedule shall be exempt from whole of excise duties 2[levied under section 3]:
Provided that goods and services specified in the Third Schedule shall be exempt from duty subject to such conditions and restrictions, if any, specified therein and no adjustment in terms of section 6 shall be admissible in respect of goods exempt from duty of excise whether conditionally or otherwise.
(2) The Federal Government may by notification in the official Gazette, exempt subject to such conditions as may be specified therein, any goods or class of goods or any services or class of services from the whole or any part of the duty leviable under this Act.
(3) The Board may, by special order, exempt from the payment of the whole or any part of the duty leviable under this Act, under circumstances of exceptional nature, any goods or services on which such duty is leviable.
(4) Notwithstanding the provisions of sub-sections (2) and (3), the Federal Government or the Board may, by a notification in the official Gazette, for reasons to be recorded, exempt any person or class of persons from payment of the whole or part of the default surcharge imposed under section 8 1 [and penalties] subject to the such conditions or limitations as may be specified in such notification.

17. Records.-(1) Every person registered for the purposes of this Act shall maintain and keep for a period of [five] years at his business premises or registered office in English or Urdu language the following records of excisable goods purchased, manufactured and cleared (including those cleared without payment of excise duty) by him or by his agent acting on his behalf in such form and manner as would permit ready ascertainment of his liability of duty, namely:
(a) records of clearances and sales made indicating the description, quantity and value of goods, name and address of the person to whom sales were made and the amount of the duty charged;
(b) records of goods purchased showing the description, quantity and value of goods, name, address and registration number of the supplier and the amount of the duty, if any, on purchases;
(c) records of goods cleared and sold without payment of duty;
(d) records of invoices, bills, accounts, agreements, contracts, orders and other allied business matters;
(e) records of production, stocks and inventory;
(f) records of imports and exports; and
(g) such other records as may be specified by the Board.

(2) For any person or class of persons registered under this Act, or for any goods or class of goods the Board may specify or prescribe,
(a) to keep any other records for the purposes of this Act;
(b) to use such electronic fiscal cash registers as may be approved by the Board; and
(c) the procedure or software for electronic maintenance of records and filing of statements, documents or information by any person or class of persons.
(3) Provisions of sub-sections (1) and (2) shall apply mutatis mutandis on services provided or rendered by a person registered under this Act.

18. Invoices.-(1) A person registered under this Act shall issue for each transaction a serially numbered invoice at the time of clearance or sale of goods, including goods chargeable to duty at the rate of zero per cent, or providing or rendering services containing the following particulars, namely:
(a) name, address and registration number of the seller;
(b) name, address and registration number of the buyer;
(c) date of issue of the invoice;
(d) description and quantity of goods or as the case may be, description of services;
(e) value exclusive of excise duty;
(f) amount of excise duty; and
(g) value inclusive of excise duty.
(2) Notwithstanding sub-section (1), where a registered person is also engaged in making supplies taxable under the Sales Tax Act, 1990, such person shall not be required to issue a separate invoice for excise purposes and the amount of excise duty and other related information may in such cases be mentioned on the invoice issued for sales tax purposes.
(3) The Board may, by notification in the official Gazette, specify such modified invoices for different persons or classes of persons as it may deem necessary.
(4) The Board may, by notification in the official Gazette, specify goods in respect of which a copy of the invoice shall be carried or accompanied with the conveyance during their transportation or movement in such manner and subject to such conditions as may be specified in this behalf either in such notification or otherwise.
(5) The Board may, by notification in the official Gazette, specify the goods or services in respect of which sales invoice shall be issued electronically and prescribe the manner and procedure therein.

CHAPTER III
OFFENCES AND PENALTIES
19. Offences, penalties, fines and allied matters.-(1) Any person who fails to file or files an incorrect return within the period specified in sub-section (1) of section 4 or fails to make payment or makes short payment of duty on any account, shall pay a penalty of ten thousand rupees in addition to the amount of duty due from him and without prejudice to other liabilities which may be determined against him or action which may be taken against him under this Act and rules made there under.
(2) Any person who,
(a) makes, orally or in writing, or signs any declaration, certificate or other document required by this Act or rules made thereunder or by any Federal Excise officer to do so, which is untrue or incorrect in any particular or which is incomplete by omitting any material particular therefrom;
(b) counterfeits or falsifies, or uses, when counterfeited or falsified, any document which is or may be required under this Act or rules made thereunder or any document used in the transaction of any business or matter relevant to this Act or rules made there under; and
(c) fails or refuses to give or produce to the Federal Excise officer any information or document required to be given or produced under this Act or rules made thereunder; shall be guilty of an offence and for every such offence shall be liable to fine which may extend to twenty thousand rupees and in case of offence under clause (b), the fine may extend to one hundred thousand rupees and he shall be punishable with imprisonment for a term which may extend to five years or with both.
(3) Any person who,
(a) illegally removes, stores, keeps, or withdraws or in any way assists or is concerned in the illegal removal or withdrawal of any goods in the manner other than the manner prescribed under this Act or rules made thereunder;
(b) is in any way concerned in conveying, removing, depositing or dealing with any goods with intent to defraud the Government of any duty of excise due thereon, or to violate any of the provisions of this Act or rules made thereunder;
(c) is in any way concerned in any fraudulent evasion or attempt at fraudulent evasion of any duty of excise;
(d) claims, takes or avails adjustment of duty not admissible under this Act or the rules made thereunder; and
(e) is in any way concerned in the manufacture of any dutiable goods in contravention of the provisions of this Act or rules made thereunder; shall be guilty of an offence and for each such offence, shall be liable to fine which may extend to fifty thousand rupees or five times of the duty involved, whichever is higher and to punishment with imprisonment which may extend to five years or both.
(4) Any person who, without the approval of the Collector, directly or otherwise destroys, damages, erases or otherwise manipulates data stored in or used in connection with a computer or otherwise uses a computer, the purpose or effect of which is to reduce, avoid or evade any liability to duty of excise which would otherwise have been imposed by this Act, or to defeat any provisions of this Act or rules made thereunder shall be guilty of an offence and shall be liable to fine which may extend to seventy five thousand rupees or ten times of the duty involved, whichever is higher and to punishment with imprisonment which may extend to five years or both.
(5) If any person obtains, attempts to obtain or abets in obtaining, or does anything whereby there might be obtained by another person, any amount by way of refund or drawback of any duty in respect of any goods which is not lawfully payable or allowable in respect thereof or which is greater than the amount so payable or allowable, he shall be guilty of an offence and shall be liable to fine which may extend to one hundred thousand rupees or five times of duty involved, whichever is higher and to punishment with imprisonment which may extend to five years or both.
(6) Any person who obstructs any Federal Excise officer or other public servant or any person acting in his aid or assistance, or duly employed for the prevention of offences under this Act or rules made thereunder in the execution of his duty or in the due seizing of any goods liable to seizure under this Act or rules made thereunder, shall be guilty of an offence and for each such offence, shall be liable to fine which may extend to fifty thousand rupees or five times of duty involved, whichever is higher and to punishment which may extend to three years or both.
(7) Where an offence under this Act or rules made thereunder has been committed by a company, firm, or other body of persons, any person who at the time of the commission of the offence was a director, manager, or other similar officer or a partner of the company, firm, or other body of persons or was purporting to act in that capacity shall be deemed to be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.
(8) Unless otherwise legally proved, where any person is liable under this Act to any penalty or punishment for any act, omission, neglect or default, he shall be liable to the same punishment, penalty or forfeiture for every such act, omission, neglect or default of any agent or employee.
(9) Where any goods are chargeable to duty on the basis of retail price under this Act and the retail price is not indicated on the goods in the manner specified therein or in the rules made thereunder, the duty shall be charged at the rate of 500 per cent ad valorem in case of cigarettes, and 40 per cent ad valorem in case of goods other than cigarettes:
Provided that in cases where a registered person does not intend to print retail price for any genuine reasons, he may voluntarily pay duty on the said higher rates as applicable to him and declare his duty payments in the return accordingly and other provisions of this section shall not apply in such cases.
(10) Where any person is engaged in the manufacture or production of cigarettes in the manner contrary to this Act or rules made thereunder or otherwise evades duty of excise on cigarettes or is engaged in the manufacture or production of counterfeited cigarettes, the machinery, equipments, instruments or devices used in such manufacture or production shall, after outright confiscation, be destroyed in such manner as may be approved by the Collector and no person shall be entitled to any claim on any ground whatsoever, or be otherwise entitled to any compensation in respect of such machinery or equipments, instruments or devices and such confiscation or destruction shall be without prejudice to any other penal action which may be taken under the law against the person or in respect of the cigarettes or vehicles involved in or otherwise linked or connected with the case.
(11) Any goods in respect of which any of the provisions of this Act or rules made or notifications issued thereunder has been contravened shall be liable to confiscation alongwith the conveyance, if any, in which such goods are laden or have been or being carried and all confiscations in this regard shall vest with the Federal Government.
(12) Any person who attempts to commit any offence punishable under this Act, or abets the commission of the offence, shall be liable to the punishment provided for the offence.

20. Appointment of Special Judges for trial of offences.- (1) The Federal Government may, by notification in the official Gazette, appoint as many Special Judges as it may consider necessary, and, where it appoints more than one Special Judge, shall specify in the notification the territorial limits within which each one of them shall exercise jurisdiction.
(2) A Special Judge shall be a person who is or has been or is qualified
to be a Sessions Judge.

21. Trial of offences by Special Judge.- (1) On the appointment of a Special Judge for any area, an offence punishable under this Act shall be tried exclusively by the Special Judge and all cases pending in any other court in such area immediately before such appointment shall stand transferred to such Special Judge.
(2) The provisions of the Code of Criminal Procedure, 1898 (Act V of 1898), except those of Chapter XXXVIII of that Code, shall apply to the proceedings of the court of a Special Judge and, for the purposes of the said provisions, the court of a Special Judge shall be deemed to be a Court of Session trying cases, and a person conducting prosecution before the court of a Special Judge shall be deemed to be a Public Prosecutor.
(3) For the purposes of sub-section (2), the Code of Criminal Procedure, 1898 (Act V of 1898), shall have effect as if an offence punishable under this Act were one of the offences referred to in sub-section (1) of section 337 of the Code.
(4) A Special Judge shall take cognizance of, and have jurisdiction to try an offence triable under sub-section (1) only upon a complaint in writing made by such Federal Excise Officers as may be authorised by the Board in this behalf, by a general or special order in writing.
(5) The provisions of Chapter XX of the Code of Criminal Procedure, 1898 (Act V of 1898), shall apply to trial of cases under this Act in so far as they are not inconsistent with the provisions of this Act.
(6) The Federal Government may, by order in writing, direct the transfer, at any stage of the trial, of any case from the court of one Special Judge to the court of another Special Judge for disposal, whenever it appears to the Federal Government that such transfer will promote the ends of justice or tend to the general convenience of parties or witnesses.
(7) In respect of a case transferred to a Special Judge by virtue of sub-section (1) or under sub-section (6), such Judge shall not, by reason of the said transfer, be bound to recall and rehear any witness who has given evidence in the case before the transfer and may act on the evidence already recorded by or produced before the court which tried the case before the transfer.

22. Power to arrest and prosecute.- (1) Any Federal Excise Officer authorized by the Board in this behalf who has reason to believe that any person has committed an offence under this Act may arrest such person after obtaining permission in writing from the Collector concerned:
Provided that the Federal Excise Officer shall immediately intimate the fact of the arrest of a person to the Special Judge who may direct such Officer to produce that person at such time and place and on such date as the Special Judge considers expedient and such Officer shall act accordingly.
(2) Notwithstanding anything contained in proviso to sub-section (1), any person arrested under this Act shall be produced before the Special Judge or, if there is no Special Judge within a reasonable distance, to the nearest Judicial Magistrate, within twenty-four hours of such arrest, excluding the time necessary for the journey from the place of arrest to the Court of the Special Judge or, as the case may be, of such Magistrate.
(3) When any person is produced under sub-section (2) before the Special Judge, he may, on the request of such person, after perusing the record, if any, and after giving the prosecution an opportunity of being heard, admit him to bail on his executing a bond, with or without sureties, or refuse to admit him to bail and direct his detention at such place as he deems fit:
Provided that nothing herein contained shall preclude the Special Judge from canceling the bail of any such person at a subsequent stage if, for any reason, he considers such cancellation necessary, but before passing such order he shall afford such person an opportunity of being heard, unless for reasons to be recorded he considers that the affording of such opportunity shall defeat the purposes of this Act.
(4) When such person is produced under sub-section (2) before a Judicial Magistrate, such Magistrate may, after authorizing his detention in such custody, at such place and for such period as he considers necessary or proper for facilitating his earliest production before the Special Judge, direct his production before the Special Judge on a date and time to be fixed by him or direct such person to be forthwith taken to, and produced before, the Special Judge and he shall be so taken.
(5) Nothing in sub-section (3) or sub-section (4) shall preclude the Special Judge or the Magistrate from remanding any such person to the custody of the Federal Excise Officer holding inquiry against that person if such Officer makes a request in writing, to that effect and the Special Judge or the Judicial Magistrate, after perusing the record, if any, and hearing such person, is of the opinion that for the completion of inquiry or investigation it is necessary to make such an order, provided that in no case the period of such custody shall exceed fourteen days.
(6) When any person is arrested under this Act, the Federal Excise Officer shall record the fact of arrest and other relevant particulars in the register mentioned in sub-section (10) and shall immediately proceed to inquire into the charge against such person and if he completes the inquiry within twenty-four hours of his arrest, excluding the time necessary for journey as aforesaid, he may, after producing such person before the Special Judge or the nearest Judicial Magistrate make a request for his further detention in his custody.
(7) While holding an inquiry under sub-section (6), the Federal Excise Officer shall exercise the same powers as are exercisable by an officer in charge of a police-station under the Code of Criminal Procedure, 1898 (Act V of 1898), but such Officer shall exercise such powers subject to the foregoing provisions of this section while holding an inquiry under this Act.
(8) If a Federal Excise Officer, after holding an inquiry, is of the opinion that there is no sufficient evidence or reasonable grounds to proceed against a person he shall make a report to this effect to the Collector and with his approval may release him on his executing a bond with or without sureties and shall direct such person to appear, as and when required, before the Special Judge and may make a report to the Special Judge for the discharge of such person and shall make a full report of the case of his immediate superior..
(9) The Special Judge to whom a report has been made under sub-section (8) may, after the perusal of record of the inquiry and hearing the prosecution, agree with such report and discharge the accused or, if he is of the opinion that there is sufficient ground for proceeding against such person, proceed with his trial and direct the prosecution to produce evidence.
(10) The Federal Excise Officer empowered to hold inquiry under this section shall maintain a register to be called “Register of Arrests and Detention” in the prescribed form in which he shall enter the name and other particulars of every person arrested under this Act, together with the time and date of arrest, the details of the information received, the details of things, goods or documents, recovered from his custody, the name of the witnesses and the explanation, if any, given by him and the manner in which the inquiry has been conducted from day to day, and such register or authenticated copies of its aforesaid entries shall be produced before the Special Judge whenever such Officer is so directed by him.
(11) After completing the inquiry, the Federal Excise Officer shall, as early as possible, submit to the Special Judge a complaint in the same form and manner, in which the officer in charge of a police-station submits a report before a court.
(12) Any Magistrate of the first class may record any statement or confession during inquiry under this Act, in accordance with the provisions of section 164 of the Code of Criminal Procedure, 1898 (Act V of 1898).
(13) Without prejudice to the foregoing provisions of this section, the Federal Government may, by notification in the official Gazette, authorize any other officer working under the Board to exercise the powers and perform the functions of a Federal Excise Officer under this section, subject to such conditions, if any, that it may deem fit to impose.
(14) Notwithstanding any provision of this Act, where any person has committed an offence liable to penalty or punishment under this Act, the Collector may, either before or after the initiation of any proceedings for the recovery of duty or prosecution of such person, compound the offence if he pays the amount of duty along with such default surcharge and penalty as is determined under the provisions of this Act.

23. Power to summon persons to give evidence and produce documents in inquiries.- (1) Any Federal Excise Officer duly empowered by the Board in this behalf shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing or information in any inquiry which such officer is making for any of the purposes of this Act.
(2) All persons so summoned shall be bound to attend, either in person or by an authorized agent, as such Officer may direct, and all persons so summoned shall be bound to state the truth upon any subject respecting which they are examined or make statements and to produce such documents and other things as may be required:
Provided that the exemptions under sections 132 and 133 of the Code of Civil Procedure (V of 1908) shall be applicable to requisitions for attendance under this section.
(3) Every such inquiry as aforesaid shall be deemed to be a “judicial proceeding” within the meaning of section 193 and section 228 of the Pakistan Penal Code (XLV of 1860).

24. Officers required to assist Federal Excise Officers.- All officers of Police and Customs, sales tax, the civil armed forces and all officers of Government engaged in the collection of land-revenue, and all village officers shall assist the Federal Excise Officers in the execution of this Act as and when required by such Officers.

CHAPTER IV
SEARCHES, ARRESTS AND SEIZURES
25. Searches and arrests how to be made.- All searches or arrests made under this Act or any rules made thereunder and all arrests made under this Act shall be carried out in accordance with the relevant provisions of the Code of Criminal Procedure, 1898 (V of 1898).

26. Power to seize.- (1) The counterfeited cigarettes or cigarettes which have been manufactured unlawfully or on which duty has not been paid as required under this Act and rules made thereunder, shall be liable to seizure besides the conveyance which has been used for the movement, carriage or transportation of such cigarettes.
(2) For the purpose of this section, `conveyance’ shall include all of its
fixtures, fittings and accessories etc.

27. Confiscation of cigarettes.- (1) The cigarettes seized for the reasons of counterfeiting shall be liable to outright confiscation and shall be destroyed in the manner prescribed in sub-section (10) of section 19.
(2) In case of cigarettes seized on account of evasion of duty, the owner shall be given an option to pay penalties and fines as provided under section 19 and meet other obligations as provided under other relevant provisions of the Act and rules made thereunder, for release of such cigarettes in lieu of confiscation provided that if such release is not claimed or availed, no reduction or abatement in respect of amounts of duty, penalties and fine shall be admissible in case such cigarettes are auctioned.
(3) In case confiscated cigarettes are rendered unfit for human consumption or become otherwise unfit for sale, the Collector may allow destruction of such cigarettes in such manner as he may deem appropriate.

28. Power to release seized conveyance.- (1) Where any conveyance is seized which is liable to confiscation, the adjudicating authority may, subject to such conditions as may be prescribed, order its release pending adjudication of the case and on furnishing a guarantee by the owner of the seized conveyance, from a scheduled bank valid for at least one year equal to the value of such conveyance.
(2) In respect of cases pending before the Special Judge, release of
conveyance under sub-section (1) shall not be allowed without prior permission of the Special Judge.

CHAPTER V
POWERS, ADJUDICATION AND APPEALS
29. Appointment of Federal excise officers and delegation of powers.-(1) For the purposes of this Act and rules made thereunder, the Board may, by notification in the official Gazette, appoint, in relation to any area or jurisdiction specified in the notification, any person to be –
(a) Collector of Federal Excise;
(b) Collector of Federal Excise (Appeals);
(c) Additional Collector of Federal Excise;
(d) Deputy Collector of Federal Excise;
(e) Assistant Collector of Federal Excise; and
(f) an Officer of Federal Excise with any other designation.
(2) Notwithstanding the other designations of the officers of Federal Excise used in this Act or the rules made thereunder:
(a) the Directorate General (Intelligence & Investigation) 1[CBR] shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and other officers with any other designation as the Board may appoint by notification in the official Gazette;
(b) the Directorate General 2[****] Internal Audit shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and other officers with any other designation as the Board may appoint by notification in the official Gazette; and
(c) the Directorate General of Training & Research shall consist of a Director General and as many Directors, Additional Directors, Deputy Directors and Assistant Directors and other officers with any other designation as the Board may appoint by notification in the official Gazette.
(d) The Board may, by notification in the official Gazette and subject to such limitations or conditions as may be specified therein, empower by name or designation, any Additional Collector of Federal Excise or Deputy Collector of Federal Excise to exercise any of the powers of a Collector of Federal Excise;
(e) any Deputy Collector of Federal Excise or Assistant Collector of Federal Excise to exercise any of the powers of an Additional Collector of Federal Excise;
(f) any Assistant Collector of Federal Excise to exercise any of the powers of a Deputy Collector of Federal Excise; and
(g) any other officer of Federal Excise to exercise any of the powers of a Collector, Additional Collector, Deputy Collector or Assistant Collector of Federal Excise;
(h) under this Act and the rules made thereunder.
(4) Unless the Board in any case otherwise directs, the Collector may, with the prior approval of the Board, authorize any officer subordinate to him to exercise within any specified area, any of the powers of the Collector or of any other officer of Federal Excise under this Act.
(5) The officer to whom any powers of any senior officer are delegated under this section shall not further delegate such powers.

30. Use of powers of subordinate officer.- (1) An officer appointed under this Act shall exercise such powers and discharge such duties as are conferred or imposed on him under this Act and he shall also be competent to exercise all powers and discharge all duties or functions conferred or imposed upon any officer subordinate to him.
(2) Notwithstanding anything contained in this Act or the rules made thereunder, the Board may, by general or special order, impose such limitations or conditions on the exercise of such powers and discharge of such duties by any Federal Excise Officer as it deems fit.
31. Power of adjudication.- (1) The adjudication powers of different Federal Excise Officers shall be as follows:
(i) Additional Collector Cases involving evasion of excise duty (principal amount) or erroneous refund of excise duty, without limit.
(ii) Deputy Collector Cases involving evasion of excise duty (principal amount) or erroneous refund of excise duty provided the amount of duty involved is not less than one million rupees but does not exceed two million five hundred thousand rupees.
(iii) Assistant Collector Cases involving evasion of excise duty (principal amount) or erroneous refund of excise duty provided the amount of duty involved is not less than ten thousand rupees but does not exceed one million rupees.
(iv) Superintendent or Cases involving evasion of excise duty (principal
(iv) Principal Appraiser amount) or erroneous refund of excise duty
(v) provided the amount of duty involved does not
(vi) exceed ten thousand rupees:
Provided that all cases of contravention of Act or rules where no evasion of duty is involved shall be adjudicated by the Deputy Collector of the respective Collectorate of Federal Excise.
(2) The Board may, by notification in the official Gazette, vary the jurisdiction and powers of any Federal Excise Officer or a class of Federal Excise Officers.
(3) A Federal Excise Officer invested with the powers to adjudicate shall decide the case within ninety days of the issuance of show cause notice or within such extended period as he may for reasons to be recorded in writing fix provided that such extended period shall in no case exceed ninety days:
Provided that the Board shall have powers to regulate the system of adjudication including transfer of cases and extension of time limit in exceptional circumstances.
(4) Notwithstanding anything contained in sub-section (3) or any other provision of the Act or any other law for the time being in force and notwithstanding any decision or judgment of any forum, authority or court, the time for adjudication in all the cases pending as on 30th June, 2006, shall be deemed always to have been extended upto 31st December, 2006, from the date on which the time limit prescribed under sub-section (3), expires.

32. Option to pay fine in lieu of confiscation of conveyance.-Wherever confiscation is adjudged under this Act or the rules made thereunder, the officer adjudging it may give the owner of the conveyance an option to pay in lieu of confiscation such fine as the officer thinks fit.

33. Appeals to Collector (Appeals).- 2[(1)] Any person other than Federal Excise officer aggrieved by any decision or order passed under this Act or the rules made thereunder by a Federal Excise Officer upto the rank of Additional Collector of Federal Excise, other than a decision or order or notice given or action taken for recovery of the arrears of duty under this Act or rules made thereunder may within thirty days of receipt of such decision or order prefer appeal therefrom to the Collector (Appeals).
(2) The Collector (Appeals) may, after giving both parties to the appeal an opportunity of being heard, pass such order as he thinks fit, confirming, varying, altering, setting aside or annulling the decision or order appealed against
“Provided that such order shall be passed not later than ninety days from the date of filing of appeal or within such extended period, not exceeding ninety days, as the Collector (Appeals) may, for reasons to be recorded in writing, extend.”;
(3) In deciding an appeal, the Collector (Appeals) may make such further inquiry as may be necessary provided that he shall not remand the case for de novo consideration.]

34. Appeals to the Appellate Tribunal and Reference to High Court.- (1) Any person or Federal Excise officer aggrieved by any of the following orders may within sixty days of the receipt of such orders file appeal to the Appellate Tribunal against such orders,
(a) an order passed by the Collector (Appeals); and
(b) an order passed by the Board or the Collector of Federal Excise under section 35:
Provided that the Appellate Tribunal shall decide the appeal filed under this sub-section within six months of its filing of appeal.
(2) The Appellate Tribunal may, in its discretion, refuse to admit an appeal in respect of an order referred to in sub-section (1) where,
(a) in any disputed case, other than a case where the determination of any question having a relation to rate of duty of excise or to the value of goods and services for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or
(b) the amount of fine or penalty determined by such order; does not exceed five hundred thousand rupees.
(3) Within ninety days of the date on which an order of the Appellate Tribunal is communicated to him, the aggrieved person or any officer of Federal Excise not below the rank of 5[Additional Collector, authorized by the Collector] may prefer an application in the prescribed form alongwith a statement of the case, to the High Court, stating any question of law arising out of such order.
(4) The statement to the High Court referred to in sub-section (3), shall set out the facts, the determination of the Appellate Tribunal and the question of law, which arises out of its order.
(5) Where on an application made under sub-section (3), the High Court is satisfied that a question of law arises out of the order referred to in sub-section (3), it may proceed to hear the case.
(6) A reference to the High Court under this section shall be heard by a Bench of not less than two judges of the High Court and, in respect of the reference, the provisions of section 98 of the Civil Procedure, 1908 (V of 1908) shall apply, so far as may be, notwithstanding anything contained in any other law for the time being in force.
(7) The High Court upon hearing a reference under this section shall decide the question of law raised by the reference and pass judgment thereon specifying the grounds on which such judgment is based and the Tribunal’s order shall stand modified accordingly. The Court shall send a copy of the judgment under the seal of the Court to the Appellate Tribunal.
(8) The cost of any reference to the High Court shall be in the discretion of the Court.
(9) Notwithstanding that a reference has been made to the High Court, the duty shall be payable in accordance with the order of the Appellate Tribunal:
Provided that, if the amount of duty is reduced as a result of judgment in the reference by the High Court, and any amount of duty is found refundable, the High Court may, on application, within thirty days of the receipt of such judgment, by an Additional Collector authorized by the Collector stating therein that he wants to prefer petition for leave to appeal to the Supreme Court, make an order authorizing the Collector to postpone the refund until the disposal of the appeal by the Supreme Court.
(10) Where recovery of any sum has been stayed by the High Court by an order, such order shall cease to have effect on the expiration of a period of six months following the day on which it is made unless the appeal is decided, or such order is withdrawn, by the High Court earlier.
(11) Section 5 of the Limitation Act, 1908 (IX of 1908), shall apply to an application made to the High Court under sub-section (3).
(12) An application under sub-section (3) by a person other than the 2[Additional Collector authorized by the] Collector shall be accompanied by a fee of one hundred rupees.
(13) Notwithstanding anything contained in any provision of this Act, where any reference or appeal was filed with the approval of Collector by the officer of lower rank than the Collector, and the reference or appeal is pending before appeal forum or the Court, such reference or appeal shall be deemed to have been filed and shall be taken to have been always so filed by the Collector.

35. Powers of Board or Collector to pass certain orders.- (1) The Board or the Collector within his jurisdiction, may suo moto call for and examine the records of any proceedings under this Act for the purpose of satisfying itself or, as the case may be, himself as to the legality or propriety of any decision or order passed by a subordinate officer and may pass such order as it or he may think fit.
(2) No order confiscating goods of greater value or enhancing any fine, or imposing or enhancing any penalty, or requiring payment of any duty not levied or short-levied shall be passed under sub-section (1) unless the person affected thereby has been given an opportunity of showing cause against it and of being heard in person or through a counsel or other person duly authorized by him.
(3) No record of any proceedings relating to any decision or order passed by any Federal Excise Officer shall be called for or examined under sub-section (1) after the expiry of two years from the date of such decision or order.

36. Power to rectify mistakes in orders.- The Federal Government, the Board or any Federal Excise Officer may rectify any mistake which is apparent from the record in any order passed by it or him under any of the provisions of this Act or the rules made thereunder, on its or his own motion or on an application made by a person affected by the order within three years of the passing of such order provided that no such rectification which has the effect of enhancing any penalty or fine or requiring the payment of a greater amount of duty shall be made unless the person affected by the proposed rectification has been given an opportunity of being heard.

37. Deposit, pending appeal, of duty demanded or penalty levied.-(1) Where in any appeal, the decision or order appealed against relates to any duty demanded or penalty imposed under this Act, the person desirous of appealing against such decision or order shall, pending the appeal, deposit the duty demanded or the penalty imposed provided that the Appellate Tribunal or Collector (Appeals) may in any particular case dispense with such deposit subject to such conditions as it may deem fit to impose so as to safeguard the interest of revenue.
(2) The order for such dispensation under sub-section (1) shall cease to have effect on the expiration of a period of six months following the date on which order for dispensation was passed or until the order of dispensation is withdrawn earlier or the case is finally decided earlier by the Appellate Tribunal or Collector (Appeals).
(3) Notwithstanding sub-sections (1) and (2), the Appellate Tribunal or Collector (Appeals) may direct that, pending decision on the appeal, the duty demanded or penalty imposed, alongwith the default surcharge payable under this Act, be paid by the appellant in suitable installments spread over a period not exceeding six months from the date of such direction:
Provided that where a person has, at the time of filing appeal, deposited fifteen per cent of the liability covered under the decision or order appealed against, he shall not be required to separately seek stay against recovery and stay in such a case shall commence from the date of payment of such fifteen per cent amount and shall remain valid till the expiry of a period of six months or till the decision of the appeal, whichever is earlier unless the case is decided in his favour and the amount so paid is claimed to have become due for refund.

38- Alternative dispute resolution.- (1) Notwithstanding any other provisions of this Act, or the rules made thereunder, any registered person aggrieved in connection with any dispute pertaining to,
(a) the liability of excise duty against the registered person or, as the case may be, admissibility of refunds;
(b) the extent of waiver of default surcharge and penalty;
(c) the confiscation of goods;
(d) relaxation of any procedural or technical irregularities and condonation of any prescribed time limitation; and
(e) any other specific relief required to resolve the dispute, may apply to the 2[Board] for the appointment of a committee for the resolution of any hardship or dispute mentioned in detail in the application and if dispute is under litigation in any Court of law or an Appellate authority, except in the cases where first information reports (FIRs) have been lodged under this Act or criminal proceedings initiated or where interpretation of question of law having larger revenue impact in the opinion of the 3[Board] is involved, may apply to the 4[Board] for the appointment of a Committee for the resolution of dispute in appeal and only such application may be entertained for dispute resolution under the provisions of this section.
(2) The Board may, after examination of the application of a registered person, appoint a committee within thirty days of receipt of such application in the Board, consisting of an officer of Federal excise not below the rank of an Additional Collector and two persons from the notified panel consisting of retired Judges not below District and Sessions Judge, chartered or cost accountants, advocates, representatives of trade bodies or associations, or any other reputable taxpayers, for the resolution of dispute.
(3) The Committee constituted under sub-section (2) shall examine the issue and may, if it deems necessary, conduct inquiry, seek expert opinion, direct any officer of Federal excise or any other person to conduct an audit and make recommendations within sixty days of its constitution, in respect of the resolution of the dispute as it may deem fit:
Provided that the period of sixty days stipulated for making the recommendations may be extended by the Board for another sixty days on specific request of the Committee.
(4) The Board may, on the recommendation of the Committee, pass such order, as it may deem appropriate.
(5) The registered person may make payment of duty and other taxes as determined by the Board in its order under sub-section (4), and
such order of the Board shall be submitted before the forum, tribunal or the Court where the matter is subjudice, for consideration and orders as deemed appropriate.]

39. Exclusion of time taken for copy.- In computing the period of limitation specified for an appeal or application under this Chapter, the day on which the order complained was served, and if the party preferring the appeal or making the application was not furnished with a copy of the order when the notice of the order was served upon him, the time requisite for obtaining a copy of such order shall be excluded.

CHAPTER VI
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.
(4) 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.
(3) The Board may, by notification in the official Gazette, for the purpose to monitor production or manufacture of any goods, specify the manner and procedure for appointment and posting of technical staff and installation, operation, maintenance of close circuit T.V system anywhere in the factory premises.

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.

FIRST SCHEDULE
[See section 3]
TABLE I
(EXCISABLE GOODS)

S.No. Description of goods Heading/ sub
Rate of duty heading Number

(2) (3) (4)
Edible oils excluding epoxidized soyabean 15.07, 15.08, Fifteen per
oil falling under heading 15.18. 15.09, 15.10, cent ad val.
15.11, 15.12,
15.13, 15.14,
15.15, 15.16,
15.17 and 15.18

2 Vegetable ghee and cooking oil.
3 Concentrates for aerated beverages in all forms including syrup form
4 Aerated waters
5 Aerated waters, containing added sugar or other sweetening matter or flavoured
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
7 Unmanufactured tobacco.
8 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.

Fifteen per cent ad val.
Fifty per cent ad val.
Twelve per cent of retail price.
Twelve per cent of retail price.
Ten per cent of retail
price.
Five rupee per kilogram.
Sixty three per cent of retail price.

1 [“9 Locally produced cigarettes if their retail price 24.02 Sixty-three per
exceeds fifteen rupees per ten cigarettes. cent of the retail price.
10 Locally produced cigarettes if their retail price 24.02 Two rupees
exceeds six rupees and fifty seven paisas per and eighty
ten cigarettes but does not exceed fifteen paisas per ten
rupees per ten cigarettes. cigarettes plus sixty-nine per cent per incremental rupee or part thereof.
11 Locally produced cigarettes if their retail price 24.02 Two rupees
does not exceed six rupees and fifty seven and eighty
paisas per ten cigarettes. paisas per ten cigarettes.”;]
12 Cigarettes manufactured by a manufacturer 24.02 Sixty three
who remains engaged on and after the 10th per cent of
June, 1994, either directly or through any other retail price. arrangement, in the manufacture of any brand
of cigarette in non-tariff areas

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.

2[14. **********************]
3[15. **********************]
4[16. **********************]
17 Solvent oil (non-composite) 2710.1150 Thirteen
rupee per
litre.
18 Other 2710.1190 Eighty eight
paisa per
litre.

5[19. **********************]
Substituted vide Finance Act, 2007. Omitted vide Finance Act, 2007. Omitted vide Finance Act, 2007. Omitted vide Finance Act, 2007. Omitted vide Finance Act, 2007.

The Federal Excise Act, 2005
[20. **********************]
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 2[Ten per cent of the retail price].
23 Lubricating oil in packs exceeding 10 litres 2710.1952 3[Ten per cent of the retail price].
24 Lubricating oil in bulk (vessels, bouzers, lorries 2710.1953 Seven
etc) rupees and
fifteen paisa
per litre.
25 4[Lubricating oil manufactured from reclaimed Respective 5[Two] rupee
oils or sludge or sediment, subject to the headings per litre. condition if sold in retail packing or under
brand names the words manufactured from
reclaimed oil or sludge or sediment should be
clearly printed on the pack]

26 Mineral greases
27 Base tube oil
28 Transformer oil 2710.1992 Twenty five rupees per kilogram.

2710.1993 Seven rupees and fifteen paisa per litre.
2710.1997 Ten percent of the retail price or seven rupees and fifteen paisa per litre, whichever is higher.

Omitted vide Finance Act, 2007.
“Seven rupees and fifteen paisa per litre” substituted vide Finance Act, 2006. “Seven rupees and fifteen paisa per litre” substituted vide Finance Act, 2006. Substituted vide Finance Act, 2007.
“Five” substituted vide Finance Act, 2006.

The Federal Excise Act, 2005
29 Other mineral oils excluding sewing machine
oil 2710.1999 Fifteen per
cent ad val.
30 Waste oil 2710.9100 and Ten per cent
2710.9900 of the retail
price or
seven
rupees and
fifteen paisa
per litre,
whichever is
higher.
31 Liquified natural gas 2711.1100 Seventeen
rupees and
eighteen
paisa per
hundred
cubic
metres.
32 Liquified propane 2711.1200 Seventeen
rupees and
eighteen
paisa per
hundred
cubic
metres.
33 Liquified butanes 2711.1300 Seventeen
rupees and
eighteen
paisa per
hundred
cubic
metres.
34 Liquified ethylene, propylene, butylenes and
butadiene 2711.1400 Seventeen
rupees and
eighteen
paisa per
hundred
cubic
metres.
35 Other liquefied petroleum gases and gaseous
hydrocarbons 2711.1900 Seventeen
rupees and
eighteen
paisa per
hundred

The Federal Excise Act, 2005
36 Natural gas in gaseous state 2711.2100
37 Other petroleum gases in gaseous state 2711.2900

1[38. **********************1
39 Carbon black oil (carbon black feedstock) including residue carbon oil
40 Methyl tertiary butyle ether (MBTE)
41 Flavours and concentrates for use in aerated beverages
42 Perfumes and toilet waters:
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.

The Federal Excise Act, 2005
44 Preparations for use on the hair excluding 33.05 Ten per cent
herbal hair oil and kali mehndi of retail price if packed in retail
packing and ten per cent ad valorem if in bulk
45 Pre-shave, shaving or after-shave 33.07 Ten per cent
preparations, personal deodorants, bath of retail price
preparations, depilatories and other if packed in
perfumery, cosmetic or toilet preparations, retail
not elsewhere specified or included; packing and
prepared room deodorisers, whether or not ten per cent
perfumed or having disinfectant properties ad valorem if
(excluding agarbatti and other odoriferous in bulk preparations which operate by burning).
46 Greases 3403.1910 Twenty five rupees per kilogram.
47 Organic composite solvents and thinners, 3814.0000 not elsewhere specified or included;
prepared paint or varnish removers.

(i) Solvent oil (composite)
(ii) Other (excluding thinners)
1[48. Viscose-staple fibre Respective heading Thirteen rupee per litre.

Ten per cent of retail price.

Ten per cent ad val.]

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- Rate of duty heading
Number
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.
1 [3 Facilities for travel 98.03
(a) Services provided or rendered in respect 9803.1000 Fifteen per
of travel by air of passenger within the territorial cent of the
jurisdiction of Pakistan charges.
2[(b) Services provided or rendered in respect 9803.1100 of travel by air of passengers embarking on
international journey to or from Pakistan

(i) Passengers embarking to or from SAARC region, UAE (Middle East), Saudi Arabia, Africa, Afghanistan
(ii) Passengers embarking to or from Europe, Far East, China, USA, Canada, Australia, South America, others

Three thousand two hundred rupees for economy and economy
plus classes and four thousand two hundred rupees for club,
business and first classes
Four thousand and two hundred rupees for economy and

1. Substituted vide Finance Act, 2006.
2. Substituted vide Finance Act, 2007.

economy
plus classes, and five thousand and seven
hundred
rupees for club,
business and first classes.]

4 Inland carriage of goods by air
5 Shipping agents. 9804.1000 Fifteen per cent of the charges.
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.
1[6 Telecommunication services. 98.12
(i) Telephone services 9812.1000 Fifteen per
cent of the charges
(ii) Fixed line voice telephone service 9812.1100 Fifteen per cent of the
1. Substituted vide Finance Act, 2006.

The Federal Excise Act, 2005
(iii) Wireless telephone 9812.1200
(iv) Cellular telephone 9812.1210
(v) Wireless Local Loop telephone 9812.1220
(vi) Video telephone 9812.1300
(vii) Payphone cards 9812.1400
(viii) Pre-paid calling cards 9812.1500
(ix) Voice mail service 9812.1600
(x) Messaging service 9812.1700
(xi) Short Message service (SMS) 9812.1710
(xii) Multimedia message service (MMS) 9812.1720
(xiii) Bandwidth services 1 [used for voice and
video telecommunication services] 9812.2000
(a) Copper line based 9812.2100

Added vide Finance Act, 2007.

The Federal Excise Act, 2005
(b) Fibre-optic based 9812.2200
(c) Co-axial cable based 9812.2300
(d) Microwave based 9812.2400
(e) Satellite based 9812.2500
(xiv) Telegraph 9812.3000
(xv) Telex 9812.4000
(xvi) Telefax 9812.5000
(xvii) Store and forward fax services 9812.5010
(xviii) Audiotext services 9812.9000
(xix) Teletext services 9812.9100
(xx) Trunk radio services 9812.9200
(xxi) Paging services 9812.9300
(xxii) Voice paging services 9812.9400

charges

(xxiii) Radio paging services
(xxiv) Vehicle tracking services.
(xxv) Burglar alarm services.
1 [7 Services provided or rendered in respect of insurance to a policy holder by an insurer, including a re-insurer
(i) Goods insurance
(ii) Fire insurance
(iii) Theft insurance
(iv) Marine insurance
(v) Other insurance
2[8 Non-fund services provided by banking companies or non-banking financial companies

Fifteen per cent of the charges
Fifteen per cent of the charges
Fifteen per cent of the charges.]
Five per cent of the gross premium paid.
Five per cent of the gross premium paid.
Five per cent of the gross premium paid.
Five per cent of the gross premium paid.
Five per cent of the gross premium paid.]
Five per cent of the
charges.]

3[9. ******************************] 4[10. ******************************]
Substituted vide Finance Act, 2006. Substituted vide Finance Act, 2007. Omitted vide Finance Act, 2007. Omitted vide Finance Act, 2007.

charges.]
*********
SECOND SCHEDULE
(Goods on which duty is collectible under sales tax mode with entitlement for
adjustment with sales tax and vice versa)
[See section 7]
S.No Description of Goods Heading/sub¬heading number
(1) (2) (3)
GOODS
1 Edible oil excluding epoxidized soyabean oil 15.07, 15.08, 15.09,
falling under heading 15.18. 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.

*********

THIRD SCHEDULE
(Conditional exemptions)
[See sub-section (1) of section 16]
TABLE-I (Goods)
S.No. Heading/ sub
Description of goods heading Number
(1) (2) (3)

1[2. ******************************]
3 Unmanufactured tobacco or tobacco refuse if used for the 24.01
purposes other than the manufacture of cigarettes, smoking
mixtures for pipes and cigarettes and cigars and cheroots
2[3A. Life insurance
3B. Health insurance
4 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes,
(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
1. Omitted vide Finance Act, 2007.
2. Inserted vide Finance Act, 2007.

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 2523.9000 or energy sector companies or projects subject to the same conditions and procedures as are applicable for the purposes of exemption of customs duty.
6 Motor spirit,- 2710.1110
(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
7 Lubricating oil if supplied to Pakistan Navy for consumption in its vessels
8 Transformer oil if used in the manufacture of transformers Respective supplied against international tenders to a project financed heading out of funds provided by the international loan or aid giving
agencies.
9 Sludge and sediment recovered from storage tanks of the 2710.9900 incoming vessels or ships meant for breaking
10 Natural gas if produced and used in the same field for drilling, 2711.2100 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
11 Carbon black oil (carbon black feed stock) if imported by National Petrocarbon (Pvt.) Limited, Pipri, Karachi as raw material for the manufacture of carbon black.
12 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.

Goods imported or supplied under grants-in-aid for which a specific consent has been obtained from the l [Board].
Goods if imported as bonafide baggage.
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).

Respective headings.
Respective headings.
Respective headings.
Respective headings.

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 Respective
aid agreements. sub-heading
of Heading
98.02
2[2 Telecommunication services: Respective
(i) Internet services whether dialup or broadband including sub-headings
of 98.12.]
email services, Data Communication Network services
(DCNS) and Value added data services

(ii) Such charges payable on the international leased lines or bandwidth services used by
(a) software exporting firms registered with the Pakistan Software Exporting Board; and
1. Substituted vide Finance Act, 2007.
2. Substituted vide Finance Act, 2006.

The Federal Excise Act, 2005

(b) data and internet service providers licensed by the Pakistan Telecommunication Authority

(iii) Such amounts received by the Long Distance International license holders including Pakistan Telecommunication Company Limited on International incoming calls under agreements with the foreign telecommunication companies
3 Marine insurance for export.
********* 9813.1000.”,