Law: Federal Excise Act, 2005

Section: 3

[Federal Excise Act (VII of 2005)]....Section 3---F.B.R. letter C.No.1(2)CEB/02 dated 15-6-2002---Duties specified in the First Schedule to be levied---Sludge---Levy of excise duty---Validity---Withdrawal of Central Excise Duty on sludge did not figure in the budget instructions issued by the Revenue Division, Central Board of Revenue---Taxpayer's reliance on a letter written to him by Superintendent of Central Excise Department advising that sludge fell under PCT Head in 2713-9000 was found to be irrelevant to the period of audit in question---Sludge had been classified under PCT heading No.2710-9900 Entry No.30 of 1st Schedule to the Federal Excise Act, 2005---Contention of taxpayer that sludge was appropriately classified under PCT heading 2713-9000 was without substance---Demand created by the department upheld by the First Appellate Authority was correct at law---If the taxpayer believed that sludge had wrongly been classified under PCT heading No.2710-9900 Entry No.30 of 1st Schedule to the Federal Excise Act, 2005, he could take up the issue with the Federal Board of Revenue for its reclassification---Taxpayer's contention of exemption was unfounded---Default surcharge and penalty imposed was set aside because, the Superintendent's letter created confusion for the taxpayer and the element of wilful default did not exist in said particular case---Appeal succeeded only to the extent of remission of default surcharge. ORDER IKRAM ULLAH GHAURI, ACCOUNTANT MEMBER.---These are cross appeals filed by Messrs Attock Refinery Ltd. Morgah Rawalpindi and Commissioner Inland Revenue, Zone-II, LTU, Islamabad against the Order-in-Appeal No. 104 of 2001, dated 22-1-2011 passed by the Commissioner Inland Revenue (Appeals-I), Islamabad. 2. Brief facts of the case are that staff of the Commissioner Inland Revenue (Audit), LTU, Islamabad conducted audit of the appellant for the period 2007-2008 and out of six audit observations three were completely dropped and one was partially dropped by the Deputy Commissioner Inland Revenue (Audit) vide order dated 15-10-2010. The appellant assailed the order dated 15-10-2010 on the remaining upheld issues before the Commissioner Inland…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492