Government of Pakistan
(Revenue Division)
Central Board of Revenue
[Sales Tax & Federal Excise Wing]
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C. No.1(3)CEB/04 |
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FEDERAL EXCISE GENERAL ORDER 01 OF 2006
SUBJECT: LEVY OF FEDERAL EXCISE DUTY AT IMPORT STAGE ON EDIBLE OIL AND VEGETABLE GHEE INCLUDING COOKING OIL VIDE SRO. 24(I)/2006 Dated 07.01.2006 - CLARIFICATIONS REGARDING
Federal Excise Duty at the rate of Re. 1 per kg has been levied at import stage on edible oil, including crude oil as well as vegetable ghee and cooking oil in lieu of duty payable on value addition at local manufacturing stage, through Notification SRO. 24(I)/2006 dated 07.01.2006. Subsequently, some queries have been raised seeking clarifications. Accordingly, following clarifications being issued for uniformity of compliance:
Query 1: Whether payment of FED @ Rs.1 per Kg at import stage, is the final liability under the Federal Excise Act, 2005.
It was clarified that payment of FED @ Rs.1 per Kg at import stage constitutes the discharge of final liability in respect of manufacturing/production of edible oil, ghee and cooking oil, and no Federal Excise Duty is chargeable on the domestic production of the said items.
Query 2: What type of returns would be required to be filed by the manufacturers of edible oil/ghee/cooking oil?
A simplified Federal Excise return has been prepared for the manufacturers of edible oil, ghee and cooking oil (Annex-A), which is to be filed by the manufacturers falling in purview of above said SRO.
Query 3: Whether crude palm oil is included in the scope of SRO 24(I)/2006.
It was made clear that crude palm oil classifiable in PCT heading 1511.1000 is covered under SRO 24(I)/2006.
Query 4: Whether the excise duty paid on import stage would be refundable on export of ghee/cooking oil.
It was clarified
that under section 5 of the Federal Excise Act, 2005, drawback of duty paid on goods
used in the manufacture of goods exported out of
Query 5: Whether the adjustment of sales tax paid on other inputs e.g. tin plate, chemicals, utilities etc would be allowed.
As payment of fixed excise duty of Rs.1 per Kg is in lieu of the net excise duty payable at manufacturing stage, no adjustment of inputs would be admissible.
Query 6: What would be the status of taxability of hydrogen being manufactured from natural gas as a part of the manufacturing process of ghee/cooking oil?
It was made clear that in accordance with Board’s ruling C.No.16(17)ST/82 dated 03.10.2003 if a manufacturer of vegetable ghee is producing hydrogen gas within his premises for use in the manufacture of final product i.e. vegetable ghee, its consumption within the same premises is exempt from the levy of sales tax. However, this exemption will not apply to such hydrogen gas which is not manufactured within his own premises or is either purchased / supplied by the manufacturer of vegetable ghee. It was also clarified that sales tax on other taxable by-products such as CO2 and oxygen gas would be separately payable at the standard rate of 15%.
(Abdul Hameed Memon)
Secretary (ST&FE-L&P)
