Law: Federal Excise Act, 2005

Section: 2(17),2(23),3(1)(d),3(5)(c),4,14,16,19,F irstSched,S.No.9

Law: Federal Excise Act, 2005

Section: R.40B

Federal Excise Act (VII of 2005)--- ----Ss.3(1)(d), 3(5)(c), 2(23), 2(17), 4, 14, 16, 19 & First Sched, S.No.9---Federal Excise Rules, 2005, R.40B---S.R.O.656(I)/2007 dated 29-6-2007---Excise duties specified in the First Schedule to be levied---Period 1st July 2006 to 30th June 2007---Services abroad---Excise duty had been charged for the reason that the services rendered came under the provisions of Federal Excise Duty which had not been paid---Taxpayer contended that during the said period there was no Federal Excise Duty and such services had not been generated in Pakistan as the remittances or the commission was received in USA or Canada and no transaction took place in Pakistan and subsections (1)(d) of S.3 of the Federal Excise Act was applicable at that time, according to which the duties specified in First Schedule to be levied were "regarding the services, provided or rendered in Pakistan"; and subsequently through Finance Act, 2008, S.3(1)(d) of the Sales Tax Act, 1990 had been substituted including the services originated outside but rendered in Pakistan---Validity---Held, there was no justification for levy of Federal Excise Duty---First Appellate Authority had rejected the version of taxpayer with the reason that the law provided that the kind of services provided by the taxpayer were subject to Federal Excise Duty and similarly placed persons were paying Federal Excise Duty on the same type of services provided by them---Such contention of First Appellate Authority had been controverted by the taxpayer with contention that none of such company was paying Federal Excise Duty---Observation by First Appellate Authority in respect of retrospective applicability of the remedial/curative legislation was not justified as substitution in clause (d) taking the "services provided in Pakistan including the services originated outside but rendered in Pakistan" had been made through Finance Act, 2008 which could in no way be made applicable to the case of the taxpayer which related to period of 1st July, 2006 to 30-7-2007---Order of First Appellate Authority was vacated and order-in-original was cancelled by the Appellate Tribunal and appeal filed by the…

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