Law: Federal Excise Act, 2005

Section: 12

Law: Sales Tax Act, 1990

Section: 2(35),2(46),4,7,8,13

Law: Constitution of Pakistan, 1973

Section: 25

ORDER: SHAHID MASOOD MANZAR (CHAIRMAN):---.--- This appeal has been filed by the taxpayer against Order No. 162 of 2020 dated 26.11.2020 passed by the learned CIR(A), Peshawar. 2. As per facts, the appellant is an Association of Persons operating a Steel Furnace manufacturing of steel billets and ingots in Dargai (erstwhile PATA). From electricity bills, data of production was worked out and a show cause notice was issued to the appellant demanding an amount of Rs.43,919,270/- in respect of duty of Federal Excise on billets produced by the appellant during the period from July, 2019 to June, 2020. While adjudicating thereupon, an order-in-original No.21/2020 was passed confirming the contravention alleged to have been made in the show cause notice. The appellant filed an appeal against the order-in-original before the learned CIR (Appeals) but could not succeed. Being aggrieved by the impugned order passed by the learned CIR (Appeals), the appellant assailed the same in 2nd appeal before this Tribunal, on the following grounds:- i. That the show cause notice and the impugned order ae illegal and unjust because the same are based on discriminatory- treatment. ii. That the Respondent No. 1 was not justified to hold as correct the value of steel ingots produced, on the basis of electricity unit retrieved by the respondent department from PESLO web.portal which is not the actual data. Where the actual data could be ascertained from the units Electricity of bill prepared on the basis of actual meter reading taken by the concerned responsible officer of PESCO. Such determination of value for the purpose of FED in Sales Tax mode, simply on guess and surmises, is clearly against the provisions of law contained in S 12 of the FE Act, 2005 r/w S-2(46) of the Sales Tax Act, 1990. iii. That the learned Respondents are also not correct in determining the tax liability in ignoring the adjustment of input tax paid, for which the appellant is entitled u/s 7 8 of the Sales Tax Act, 1990 r/w Section 7 of the Federal Excise Act, 2005. iv. That the appellant, before the 25 Constitutional amendment even thereafter upto 30 June, 2019 was at par with all other industries in erstwhile…

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