Federal Excise (Case Laws)

S. 10 [as amended by the Finance Act (XIII of 2022)]---Mobile handset levy on imported phones---Levy on ordinary phones other than smart phones---Legality---Respondents had imported mobile phones and were aggrieved by the imposition of mobile handset levy under Read More...

Federal Excise Act 2005---Ss. 14(1) & 14(2)---Customs Act (IV of 1969), S.80---Federal Excise Duty, determination of---Penalty for evading Federal Excise Duty---Customs Authorities, powers of---Scope---Customs Authorities issued show cause notice to importer Read More...

Federal Excise Act (VII of 2005)---S.14---Federal Excise Duty Rules, 2005, Rr. 48(6), 60(1)(b)(d) & 70(2), proviso---Constitution of Pakistan, Arts. 24 & 199---Constitutional petition---Government dues---Coercive measure---Notice of recovery, non-issuance Read More...

Income Tax Ordinance (XLIX of 2001)---Ss. 113, 133 (1) & Second Sched., Part-IV, Cl. 45A---Notification SRO No. 333(I)/2011, dated 02-05-2011---Reference---Withholding tax---Deductions---Whether the Appellate Tribunal had not erred in law by vacating orders Read More...

Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000)---Ss. 2(3)(i)(a), 2(3)(i)(b), 2(3)(i)(c), 2(3)(ii), 9 & 10---Sales Tax Act (VII of 1990), S. 13 & Sixth Sched. Serial No.46 (as omitted through Finance (Supplementary) Act, Read More...

Income Tax Ordinance (XLIX of 2001)---Ss.133(1), 214A & 214D [as amended by Finance Act (XXX of 2018)]---Reference---Selection for audit---Amendment in law---Order selecting case of respondent / taxpayer for audit was set aside by Appellate Tribunal Inland Read More...

Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000)-----Ss. 10 &17---Constitution of Pakistan, Art. 199---Constitutional petition---Federal Tax Ombudsman---Inspection of office of Inland Revenue---Jurisdiction---Scope---Petitioners were Read More...

Show-cause notice without jurisdiction-Criminal proceedings, initiating of---Pre-conditions--Petitioners were aggrieved of proceedings initiated by authorities on the allegation of obstructing tax recovery process--- Plea raised by Read More...

Manufacturer of polyester staple fiber (PSF) in North-West Frontier Province (now Khyber Pakhtunkhwa)— Exemption from excise duty on raw materials mono-ethylene glycol (MEG) and pure terephthalic acid (PTA)—Removal of—Legality— Whether SRO Read More...

Pending cases of taxpayers, non-assigning of—Maladministration—Scope—Federal Tax Ombudsman took Own Motion against FBR Authorities to provide relief to the taxpayers because more than 65000 cases were unassigned, lying in CTO portal, in wake of Read More...

Maladministration— Scope—Refund of tax to commercial exporter on zero rated supplies— Authorities proceeded against the importer alleging him of using fake/flying invoices while taxpayer/ importer trying to satisfy the authorities—Complaint Read More...

Retail price---Scope---Appellant was held liable to include the notional value of Federal Excise Duty in retail price for the purpose of calculating sales tax on the ground that the excise duty was to be factored in while computing the Read More...

Recovery of tax- Show cause notice--Adjudication proceedings---Order-in-original--- Limitation--Scope---Commissioner, under subsection (5) of S.11 of the Sales Tax Act, 1990, and subsection (2) of S. 14 of the Federal Excise Act, 2005, Read More...

Maladministration--Scope--Certain goods were made chargeable to sales tax on the basis of retail price at the time of import by virtue of amendments made in S.3(2) of the Sales Tax Act, 1990--Federal Tax Ombudsman took Own Motion to check development and Read More...

No official of Directorate of PCA was empowered to conduct audit in the matter of Federal Excise and Income Tax without powers / justification---Any such audit was void ab-initio and coram non judice---Clearance Collectorates did not have authority to collect Read More...

Appellant paid Federal Excise Duty on its supplies of locally purchased raw material for production of cooking oil under S.7 of Federal Excise Act, 2005, under sales tax mode---Appellant claimed refund of excise duty but the refund of the appellant was considered as Read More...

Where order of Appellate Tribunal was based on findings of facts, after detailed discussion, deliberation and interpretation of provisions of law and as such did not carry any mistake apparent on record, then same did not require any interference by High Court while Read More...

Suit filed in the (Sindh) High Court in its original civil jurisdiction against an Order, Notification relating to a taxing statute-Bar to jurisdiction of "civil courts" under ouster clause in S.41 of Federal Excise Act, 2005-Implied bar Read More...

Olas Khan v. Chairman NAB (PLD 2018 SC 40) In this case, while commenting on the erroneous assumption of jurisdiction by the High Court in a matter of bail, it was observed that: "it is now settled position in law that merely citing or Read More...

Incorrect provision of law mentioned in the notice---Effect- --Quoting of wrong provisions of law in a show cause notice would not necessarily vitiate the entire process initiated thereunder---In deciding the legal validity of the show Read More...

Record showed that application of complainant for revision in sales tax return was pending for three months and no action was taken by Dept. despite follow-up reminders---Delay in disposal of complainant's application was evident, which Read More...

Refund of tax amount, delay in-Taxpayer was aggrieved of delay in process of his tax refund- Indeed--Objections raised under S.9(2)(b) of Federal Tax Ombudsman Ordinance, 2000 was misconceived as taxpayer had already availed legal remedy Read More...

Complaint against non-issuance of income tax refund---Jurisdiction of the Federal Tax Ombudsman in relation to cases of tax refund---Intra-court appeal---Maintainability---Petitioner’s complaint before the Federal Tax Ombudsman regarding non-issuance of income tax Read More...

Appellant/taxpayer was engaged in the business of leasing----Tax Officer, held appellant liable to federal excise duty under Third Sched., Table II, Item 8 of Federal Excise Act, 2005 for the period 2007 to 2011 and levied federal excise duty Read More...

Telecommunication services---Internet services---Scope---Question before the High Court was whether an internet service provider was liable to pay federal excise duty which was imposed with regard to voice / telephonic content of internet Read More...

Any amendment introduced in law has prospective effect, unless the amendment expressly provides for it to have retrospective Read More...

Retrospective effect of amendment in the statue (Federal Excise Act, 2005)---Scope---Dispute was with regard to refund of Excise Duty paid by respondent companies---Federal Tax Ombudsman directed respondent companies to get audit conducted Read More...

Reference to the President against recommendation of Ombudsman---Scope---When the Revenue Division or any person was aggrieved of a recommendation made by the Federal Tax Ombudsman in terms of S.11 of the Establishment of the Office of Federal Tax Ombudsman Read More...

Federal Tax Ombudsman---Review, power of---Scope---Section 14(8) of the Establishment of Office of Federal Tax Ombudsman Ordinance, 2000 empowered the Ombudsman to review any finding communicated or recommendation made or any order passed by him---Said power of Read More...

Recovery of tax---Application for stay order---Scope---Rectification of stay order---Scope---Appellate Tribunal Inland Revenue could not rectify stay order under S.36, Federal Excise Act, 2005 Matter of stay being purely discretionary in nature---Where the taxpayer Read More...

“Stay of recovery of tax” and “injunction”---Distinction---Appeal and rectification proceedings---Procedure---Appellate powers of the Tribunal---Scope---“Order of stay” would take effect immediately on being passed, even of it was not brought/served to Read More...

Complaint against non-issuance of sales tax refund---Jurisdiction of the Federal Tax Ombudsman---Maladministration---Scope---Matter sub judice before High Court---Effect---Contention of the Department was that per S.9(2)(a) of the Establishment of Office of Federal Read More...

(k) Federal Excise of 2005---

---S.3, First Schedule, Table II---Central Excise Act (I of 1944), S.3---Sindh Sales Tax Act (XII of 2011), S.3---Constitution of Pakistan, Arts. 199, 270AA (7), Fourth Schedule, Federal List, entries Nos. 44, 49 Read More...

Representation to the President of Pakistan--- Limitation 30 days to file representation to the President under S.32 of the Establishment of the Officer of Federal Tax Ombudsman Ordinance, 2000---Valid grounds for condonation of delay---Scope---Representation filed Read More...

Constitution of Pakistan, Arts. 270AA, 142, 199 & Forth Sched.---Federal Excise Rules, 2005, R. 43---S.R.O. No. 550(I)/ 2006 dated 05.06.2006---Declaration and continuances of laws after the Eighteenth Constitutional Amendment with regard to collection of levy / Read More...

Jurisdiction, functions and powers of the Federal Tax Ombudsman---Maladministration---Scope---Complaint against delay in refund of Customs Duty and imposition of additional Customs Duty---Contention of Department was that delay in refund was on account of Read More...

Payment of duty---Liability---Intendment or presumption on interpretation of law---Scope---Bank account of petitioner was attached on the basis of alleged tax demand raised by authorities---Validity---Person sought to be taxed could only be taxed when he come within Read More...

Two interpretations---Charging section of a fiscal statue is key and pivotal provision, which imposes a fiscal liability upon a taxpayer/person thus it should be strictly construed and applied, so far the revenue is concerned---Where a provision is susceptible to Read More...

Review of findings of Federal Tax Ombudsman---Scope---Department, by way of review of impugned order, sought expunction of remarks made by the Federal Tax Ombudsman in the impugned order, on the ground that the said remarks were contradictory, as the Federal Tax Read More...

Scope of review of findings of Federal Tax Ombudsman under S.14 of the Establishment of the Officer Federal Tax Ombudsman Ordinance, 2000---Concreted effort to re-argue the entire case and introduction of new issues which were not raised in the original complaint, Read More...

Audit---Powers of Commissioner and Federal Board of Revenue---Giving of advance notice---Purpose, object and scope---Board as well as Commissioner are empowered to conduct audit of the record and documents of any person registered under Federal Excise Act, 2005, Read More...

Recovery of federal excise duty---Show cause notice---Interpretation of any provision by Federal Board of Revenue---Scope---Petitioner was aggrieved of show cause notice issued by adjudicating authority and consequential orders-in-original passed as consequence of Read More...

“Statute” and “administrative instructions”---Conflict---Scope---In case of conflict between a statute and instructions of Department, instructions/orders of the department are to be ignored and statute law has to be Read More...

“Statute” and “administrative instructions”---Conflict---Scope---In case of conflict between a statute and instructions of Department, instructions/orders of the department are to be ignored and statute law has to be Read More...

Franchise services---Proof---Federal Excise Duty, recovery of---Show cause notice---Alternate remedy---Petitioner company assailed show cause notice issued for recovery of Federal Excise Duty on the ground of franchiser and franchisee relationship---Plea raised by Read More...

Liability to pay Federal Excise Duty---Limitation---Failure to file monthly returns---Registered person, engaged in the business of property development and construction of residential/commercial units, was under legal obligation to file monthly Read More...

Central excise duty, recovery of---“Telephone”---Definition---Scope---Mobile telephone---Appellant was a company engaged in business of cellular phones and was aggrieved of show cause notice raising demand of recovery of central excise duty---Validity---Mobile Read More...

Leave to appeal was granted by Supreme Court to consider; whether complaint mentioned in S. 9-A(6) of Central Excise Act, 1994, by which Special Judge, could take cognizance, was to be equated with “complaint” under S. 200, Cr.P.C. and thus procedure thereunder Read More...

Inquiry into offence---Procedure---Comprehensive procedure had been provided under S. 13 of Central Excise Act, 1944, for inquiry into an offence committed under Central Excise Act, 1944, right up to filing of complaint before Special Read More...

Arrest and detention---Non-registration of FIR---Effect---Absence of FIR does not, in any way, take away or affect powers of Central Excise Officer to arrest an accused under Central Excise Act, 1944, to carry out inquiry into an offence and to file complaint before Read More...

Complaint to Special Judge---Format---Nature of complaint to be filed by Central Excise Officer to Special Judge for trial of accused, has been equated with police report submitted by officer in charge of police station under S. 173, Cr.P.C.---Such complaint is not Read More...

Arrest and detention---Inquiry into offence---Scope---Case registered against accused under Central Excise Act, 1944, was declared without lawful authority by High Court in exercise of its constitutional jurisdiction---Validity---Initiation of criminal proceedings, Read More...

Association of persons (AOP)---Transfer of property---Arbitration award/agreement---Authorities did not accept arbitration award/agreement of the plea that the same had not conferred any ownership right on individuals/shareholders, unless the deed was registered Read More...

Property tax in case of building---Exemption---Scope---Constitutional petition---Trust property being used for charitable activities---Remission of property tax and conservancy tax on such property granted by Cantonment Board from 1-7-1987 to 30-6-2004---Withdrawal Read More...

Constitutional petition based on important question of law of public importance---Maintainability---Such question could be raised directly before High Court and constitutional petition was maintainable in Read More...

Seizure and confiscation of smuggled goods---Maladministration---Allegedly smuggled goods were seized along with the truck carrying those goods by Anti-Smuggling Organization---Adjudicatory Authority, confiscated said goods and penalty of Rs.100,000 was also imposed Read More...

Complaint against non-issuance of sales tax refunds and delay in issuance of sales tax refunds---Maladministration---Additional payment (compensation) for delay in payment of refund claims---Contention of taxpayer inter alia was that Department was deliberately Read More...

Failure to pay tax collected or deducted---Obligation of Department and taxpayers---Taxpayers were served with show-cause notice under S.161 of the Income Tax Ordinance, 2001 for failure to pay tax deducted as withholding agents---Contention of tax payers was that Read More...

Complaint against non-issuance of income tax refund---Jurisdiction of the Federal Tax Ombudsman---Scope---Contention of Department was that the complainant ought to have filed appeal before the first statutory Appellate forum and there was no cause for him to file Read More...

Non-issuance of income tax refund claim in relation to advance tax paid under S. 235 of the Income Tax Ordinance, 2001 on electricity bills by the complainant, which was CNG station---Validity---Tax deducted under S. 235 of the Income Tax Ordinance, 2001 was Read More...

Jurisdiction of the Federal Tax Ombudsman---Scope---Maladministration--- Fraudulently prepared document---Complaint against unauthorized CNIC access and unilateral issuance of NTN and subsequent amendment therein by the Department---Contention of complainant was Read More...

Filing of revised income tax revised income tax returns---Obtaining written permission of Commissioner for filing revised income tax returns---Income tax refund---Complaint of maladministration on part of Income Tax Authorities for non-issuance of income tax Read More...

Non-issuance of tax refund---Maladministration---Scope---Contention of complainant/taxpayer was that despite completing all legal procedures and requirements, Department had failed to issue refund---Contention of Department was that the said claim of refund was Read More...

Jurisdiction, functions and powers of the Federal Tax Ombudsman---Federal Tax Ombudsman holds “concurrent jurisdiction without restraint” in all cases involving maladministration by Federal Board of Revenue functionaries---Taxpayer had the option to go either Read More...

---Reference to High Court---Jurisdiction of High Court under S. 34A of the Federal Excise Act, 2005---Scope---While exercising jurisdiction under S. 34A of the Federal Excise Act, 2005 only such questions could be answered by the High Court which were questions of Read More...

---Power of adjudication---Limitation---Show-Cause Notice was issued on 5-7-2001---As per provision of S.33(3) of the Central Excise Act, 1944, as relevant, on the date the order was mandated to be finalized within 45 days of the issuance of Show-Cause Notice within Read More...

Services provided by Financial Institutions i.e. transactions of insurance commission---Liability to pay excise duty on such transaction for period from January to June 2007---Validity---Services specified only in First Sched. of Federal Excise Act, 2005 would be Read More...

---Central Excise Act (1 of 1944) S.33(3)---Failure to comply with requirement as to time does not render an act invalid---Scope---Article 254 of the Constitution of Pakistan only relates to “any act or things required by Constitution to be done within a Read More...

Services provided by Bank i.e. merchant discounts on use of credit-card by its holder---Liability to pay excise duty on such services for period from January to June 2007---Validity---Services only specified in First Sched. of Federal Excise Act, 2005 would be Read More...

--Cement factory---Contravention report of short production---Effect---Audit was conducted of 13 quarters and chose five quarters to work out contravention of alleged evasion of short production of Clinker---Senior Intelligence Officer (SIO) had made elementary Read More...

Services provided by Bank i.e. merchant discounts on use of credit-card by its holder---Liability to pay excise duty on such services foe period from July, 2007 to December, 2008---Validity---Service No.11 listed in Entry 8 of First Sched. of Federal Excise Act, Read More...

Fiscal statutes---Charging provision would be applied as same stood, and there would be no intendment or equity regarding thereto.

Fiscal statutes---Two reasonable interpretations of a provision being possible---Effect---Interpretation favouring taxpayer would Read More...

Services provided by Bank in respect of speedy cash home remittances received in Pakistan from abroad---Liability of Bank to pay excise duty on such services---Validity---Bank for such remittances had not charged anything from remitters, but had received amount Read More...

Constitutional petition---Jurisdiction, functions and powers of the Federal Tax Ombudsman---Complaint against maladministration---Aggrieved person---Scope---Petitioner while performing his duties as Additional Collector (Preventive) Customs made order for release of Read More...

--Authorities performing functions under any statute were required to conduct themselves strictly in accordance with law by remaining within the domain and jurisdiction as vested in them under the Read More...

----Every law was required to be administrated in such a manner that it may foster the purpose of such legislation and shall not, in any manner, frustrate the Read More...

Every law was required to be administrated in such a manner that it may foster the purpose of such legislation and shall not, in any manner, frustrate the Read More...

Red lead/ Litharge—Pigment or chemical—Litharge by itself was a pigment but a chemical that was used in the manufacture of pigments/  Red lead in view of its high toxicity was a dying pigment and was seldom used. 

First Sched, Item Read More...

Constitution Read More...

Circular/ Effect—Circular are binding on Department/ Correctness of circulars cannot be challenged by Department even on the ground of their being inconsistent with statutory provision/ Indian Central Excise Act, 1944, S.37B.

Apart from the fact that Read More...