Law: Federal Excise Act, 2005

Section: 3,7

Federal Excise Act (VII of 2005)--- ----Ss. 3 & 7---Pakistan Telecommunication (Reorganization) Act (XVII of 1996), S. 5(2)(h)---Sales Tax Act (VII of 1990), S. 3---Interconnection Guidelines, 2004, Art. 3.1---Federal excise duty, charging of---Telecommunication services---Interconnection of systems---Order-in-original was passed by authorities for recovery of federal excise duty from taxpayers relating to interconnection of their systems but Appellate Tribunal Inland Revenue dismissed the same---Validity---Federal excise duty and charge thereof was attracted only when call was completed, i.e., when it was answered or received by subscriber of receiving network---On completion of call made by subscriber on one network of service provider to that of other, former was charged entire cost of rendering telecommunication service and same essentially included Federal excise duty, as such same included charges relating to providing facility of interconnection between two distinct networks---Merely agreeing to provide interconnection service to subscribers of two or more service providers did not constitute rendering of telecommunication service---Interconnection of two networks of distinct service providers was for purposes of rendering of telecommunication services to subscribers---On its own same could not be treated as rendering of such service---Authorities misinterpreted concept of interconnection and same was confused with 'rendering of telecommunication services'---Mere interconnection of networks by two service providers was not sufficient to attract Federal excise duty---Appellate Tribunal Inland Revenue had rightly set aside order-in-original---Reference was dismissed accordingly. THIS ORDER PASSED BY: ATHAR MINALLAH, CHIEF JUSTICE:---.--- Through this consolidated we shall decide the instant Tax Reference along with Intra Court Appeal No.26 of 2014 titled "The Commissioner, Inland Revenue (Legal) etc. v. Warid Telecom (Private) Limited, etc.", Intra Court Appeal No.401 of 2014 titled "Pakistan Mobile Communications Limited v. Federation of Pakistan, etc." and Review Petition No.04 of 2015 titled "Pakistan Mobile Communications Limited v. Federation of…

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