LS M302 R a EGISTERED No, MTO%. The Gazette L252 of Pakistan SS EXTRAORDINARY PUBLISHED RY AlITHORITY ISLAMABAD, SATURDAY, JULY 1, 1989 PARTI ‘Act, Ordinances, President's Orders and Regulations including Martial Law Onders and Regulations NATIONAL ASSEMBLY SECRETARIAT Islamabad, the 1st July, 1989 ‘The following Act of Mejlis.e-Shoora (Parliament) received the assent of the President on the 29th June, 1989, and is hereby published for general snormation ;— ACT No. V oF 1989 An Act to give effect to the financial proposals of the Federal Government jos the eur beginning on the frat dey of July, 1989 and 50 amend certain laws. WHEREAS it is expedient to make provisions to give effect to the financial propesals of the Federal Goverament for the year beginning on the first day of July, 1989. and to atmend certain laws for the purposes hereinafter appearing : It is hereby enacted as follows -— |. Short title, extent and commencement.—(1) This Act may be called the Finance Act, 1989. Q) It extends to the whole of Pakistan. (3) It shall come into force at once exeept sub-sections (3), (4), (5), (6) and (7) of section 3 and sub-sections (1), (2), (6) and (10) of section 5 which shall come into force on such day as the Federal Government may, by notification in the official Gazette, appoint. (93) Price: Rs. 6.10 [3710 Ex. Gaz]I4 ot ‘THE GAZETTE OF PAKISTAN, EXTRA, JULY [, 1989 (Par 1 2. Amendinent to Act VI of 1898.—The following amendments shall be made in the Post Office Act, 1898 (VI of 1898), nomely (i) in section 45, in the, proviso, for the word “Fifly” the words “one hundred” shall-be substituted ; and (ii) “for the First Schedule-to the said Act the First Schedake set out in the Firsi Schedule to this Act shall be substituted 2. Amendment of Aet I of 1944,—The following amendments shall be made in the Ceniral Pxeises and Salt Act, 1944 (Lof 1944), namely — (1) in section 2, for clauses (a) and (az) the following shall be substituied, namely “ta) “adjudicating authority” means any authority competent to pass ‘any order or decision under this Act or the rules made thereunder, ‘but does not include the Central Board of Revenue, Collector of Contra] Excise (Appeals) or Appellate Tribunal : (aa) “Appellate Tribunal” means the Customs, Excise and Sales Tax Appellate Tribunal constituted under section 194 of the Customs, Act, 1969 (TV of 1969); (aaa) “broker” or “commission agent” means a person who in the ordinary course of business makes contract for the sale or purchase of excisable goods for others: (aaa) “Central Board of Revenue” means the Central Board of Revenue constituted under the Central Board of Revenue Act, 1924 (V of 1924)"": (2) in Chapter 1 ater section 12A, the following new section shill be fed, namely :— “17K, Exemption of dety of excise not levied or short levied as a result of eneral practice Notwithstanding anything contained in this ‘Act, if the Federal Government is satisfied that, — (a) a practice was generally prevalent regarding levy of excise ‘duty on any excisable goods; (b) such goods were liable to duty of excise, in eases where according to the said practice the diaty was not levied er fiable to a higher amount of duty of excise than what was levied according to the said practice ; and (©) the manufacturer or producer did not recover duty of excise chargeable on the goods prior to the date on which the goods, are eld to he liable to excise duty ; then, the Federél Government may, by notification in the Oficial Gazeite, direc: that the whole of the duty of excise payable on such, goods. oF as the ease may he, the duty of excise in excess of that peyable on such goods, but for the said practice, shall not be Tequired to be paid in respect of the goods on which the duty of ‘excise was not levied or short levied, in accordance with the said practice.”; rPatel ts THE GAZETTE OF PAKISTAN, EXTRA. JULY 1, 1989 95 8) a) oy for section 35 the following shall be substituted, namely — “35, Appeals to Collector (Appeals).—(1) Any person aggrieved by any decision or order passed under this Act or the rules made thereunder by a Central Fxcise Officer lower in rank than a Collector of Central Excise, other than a decision or order or notice given or action taken undersection [1 may appeal therefrom to the Collector (Appeals) within thirty days of the date of the receipt of such order: Provided thet an appeul filed after the expicy of thirty days may be admitted by the Collector (Appeals) if he is sitisfied thal the appeliant had sufficient cause for no filing the appeal within that period. {2) Anappeal under this section shall be in such form and shall be verified in such manner as may be preseribed.": For see » 35.4, the following shall be substituted, namely “SSA, Procedure in appeal.—{U) The Collector (Appeals) shall save an opportunity to the appellant to be heard if he sp desires, (2) The Collector( Appeals) may. at the hearing of an sppeal.allow the appellant to go into any ground of appeal not specified in the grounds of appeals, if the Collector (Appeals) is satisfied that the omission of that ground from ihe grounds of appeal was not wilful or unreasonable, (3) The Collecior (Appeals) may, afer making such further inquiry as may be necessiury, pass such order as he thinks fit confirming. modifying or annulling the decision or order appealed against. or may refer the ease back to the adjudicating authority with such directions as hhe may thing i fora fresh adjudieation or decision. as the case may be after taking additional evidence. if necessary Provided that am order enhancing any penalty ot fine in View of confiscation or confiscating goods of greater value reducing the ameunt ff refund sill not be passed unless the appellant has been given a sonable opportunity OF showing cause auinst the proposed order Provided further that. where ihe Collector (Appeal) is of the opinion that any daty has not been levied or has been short-levied or errongously refunded. no order reauiring the appellant 'o pay any duly not levied, short levied oF erroncously refunded stall be passed unless the appellant is given notice within the time limit proserited for the purpose (4) The order of the Collecior (Appeals) disposing of the appeal shall be in writing and shall state the points for determination. the decision thereon and the reasons for the devision, (Si On the disposal of the appeal, she Collector (Appeals) shatl communicate the order passed by him to the appellant. the adjudiexting auliority andthe Collector of Central Preise." after section 35 A. substituted us aforesaid, the following new sections shall be inserted. namely 35-B. Appeals vo ‘ihe Appellate Tributal.—(1) Any. person aggrieved by any of the following orders may appeal to the Appel96. 16 THE GAZETTE OF PAKISTAN, EXTRA, JULY 1, 1989 [Part 5 “Tribunal against svch order fa) adecision or order passed by the Collector of Central Excise as an adjudicating authority ¢ (b) aa order passed by the Collector (Appeals) under section 3$ (¢). an otder passed under section 35, as it siood immediately befare the appointed day + (@)_anorder passed by the Central Board of Revenue or the Collector ‘of Central Excise under section 35-A, as it stood immediately ‘before the appointed day 5 Provided that no appeal shall lie to the Appellate Tribunal, and the Appellate Tribunal shall not have jurisdiction to decide any appeal, in respect of any order referred to in sub-section (I) if such order relates to (2) a case of loss of goods, where the loss oocurs in transit from a factory to werehouse or to another factory or from ene ware house to another, or during the course of processing of the goods in @ warchouse or in storage, whether in a factory or in & warehouse ; (b) a rebate of duty of excise on goods exported to any vountry or tervitory outside Pakistan or on excisable materials used im the ‘manufacture of goods which are exported to any ccuntry or territory outside Pakistan ; (©) goods exported outside Pakistan without payment of duty ; (@) an order passed under the rules made for the purpose of sub section (4) of section 3; and (©). a decision or order or notice given under section (1: Provided further thatthe Appellate Tribunal may, in its diseretion, refuse toadmit an appeal in respect of an order referred toin sub-section (1) where— i) inany disputed case, other than a case where the determination of any question having a telation to rate of duty of excise or to the value of excisable goods and services for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved ; or (ii) the amount of fine or penalty determined by such order ; does not exceed ten thousand rupees. Q) The Central Board of Revenue or the Collector of Central Excise may. iit, oras the case may be, he is of the opinion thatan order passed by the Collector (Appeals) under section 35-A is not legal or proper, direct any Central Excise Officer authorised by it or him in this ‘chal (hereafter referred to as the authorised officer) to appeal on its or his behalf to the Appellate Tribunal against such order. @) An appeal under this section shall be filed within sixty days from the date on which the decision or order sought to. be appealed against is communicated to the Ceatral Board of Revenue or the Collector of Central Excise or, as the ease may be, the other party preferring the appeal. vontPare t THE GAZETTE OF PAKISTAN, EXTR: JULY 1, 1989, 7 (4) On receipt of notice that an appeal has been preferred under this section. the party against whom the appeal has been preferred may, notwithstanding that he oy not have appealed against such order or any part thereat, fle within thirty days of the reeeipt of the notice a memorandum of cross-obxetions verified in such manner as may be specified by rules made in this behalf against any part of the order aapoealed against and such memorandum shall be disposed af by the Appellate Tribunal as if it were aw appeal presented within the time specified in sub-section (3) (5) The Appellate Tribunal may admit an appeal or permit the Fling of @ memorandum of cros-objections aller the expicy of the relevant period referred to in sub-section (2) or sub-section (4), if itis satisfied that there was sufficient cause for not presenting it within that period. {6) An appeal to the Appellate Tribunal shall be in such form and shall be verified in such manner as may be specified by rules made in this bbohalfund shall, exceptin the case of anappeal referced to in sub-section Q)ora memorandum of cross-objections referred to in sub-seelion (4), be accompanied by a fee of two hundzed rupees, 35-0, Onder of Agpeliate Tribral, (1) The Appellate Tribunal may. aftr giving the parties to the appeal an opportunity of being heard, pas such orders thereon as it thinks fit, confirming. modifving or aannulling the decision or order appealed against or may refer the case back to the authority which passed such decision or order with such irections us the Appellate Tribunal may think fit, for a. fresh adjudication o° decision, 25 the case may be, after taking additional evidence, if necessary (2) The Appellate Tribunal may, ac any time within three yeurs from the date of order, with a view to rectifying any mistake apparent from the record, amend aay order passed by it under sub-seetion (/ and shall make such amendments the mistake is brought to itsmotice by the Collector of Central Excise or the other party fo the appeal Provided that an amendment which has the effeet of enhancing an assessment or reducing a refund or otherwise increasing the liabilily of the other party shall not be mace under this sub-section, unless the Appellate Tribunal has given novice to him oF its intention to do so and has allowed him a reasonable opportunity of being heard. (3) The Appellate Tribunal shall send a copy of every order passed by it under this section, disposing of an appeal, to the Collector of Central Excise arid the other party to the appeal, (A) Save as othorwite previded in sections 36-and 36H, an order passed by the Appellate Tribunal shall be final.98 \s ‘THE GAZETTE OF PAKISTAN, EXTRA, JULY L, 1989 (Patt 35-D. Provedlare of Appellate Tribunal —(1) The provisions of subsections (1), (2), (5) and (6) of section 194-C of the Customs Aci, 1969 (IV of 1969), stall apply to the Appellate Tribunal in the discharge ofits functions under this Actas they apply to it in the discharge of its fimetions under the said Act (2) Every appeal against a decision or order relating, among other things, to the determination of any question havinga relation to the rate of duty of excise oF to the valve of exciseable goods and services for purposes of assessment, shall be heard by a Special Bench constituted by the **rieman for hearing such appeal and such Bench shall consist of rrot less than two members and shall include at least one judicial member and one technical member. (3) The Chairman or any other member of the Appellate Tribunal authorised in this behalf by the Chairman may, sitting singly, dispose of | any ease which fas been aifotted to the Bench of which he isa member where— rr) any disputed case, other tan a case where the determination of any question having a relation to the rate of duty of excise orto the value of excisable goods and services for purpose of assessments in issue or is one of the points in issue, the difference in duty involved or the duty involved ; or (b) the amount of fine or penalty involved : does not exceed fifty thousand napees, (4) Ifthe members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the msjority, if thereis a majority, but if the members are equally divided, they shall siate the point or points on which they differ and the case shall be referred by the Chairman for hearing on sich point or points by one or more of the other members of the Appellate Tribunal, and suck point or points shall bbe decided according to the opitian of the majority of the members of the Appellate Tribunal who have heard the case including those who fisst heard Provided that, where the merahers éf'a Special Bench are eqully divided, she point or points on which hey differ shall be decided by the Caaisman (5) Subject to the provisions of this Act, the Appellate Tribunal shall have power to regulate i's own procedure and the procedure of the Berches thereof in all matiers arising oul of the exercise ofits powers or of the discharge of its functions. including the places at which the Benches shall hold their sittings,vare a EME GAZETTE OF PAKISTAN, EXTRA. JULY 1, 1989 35E. Powers of Board or Collector of Central Excise to pass certain orders—{1) The Central Board of Revenue may, of its own motion, call for and examine the record of any proceeding in which a Collector of Central Excise asan adjudicating authority has passed any decision or order under this Act for the purpose of satisfying itself as ta the legality or propriety of any such decision or order and may. by order, direct such Collector to apply to the Appellate Tribunal for the determination of such points arising out of the cezision or order as may be specified by the Central Board of Revenue in its order. 2) ‘The Collector of Central Excise may, of kis own motion, call for and examine the record of any proceeding in which am adjudicating authority subordinate co hia has passed any decision or order under this Act for the purpose of satisfying himself as to the legelity or propriety ofany such decision or onterand may, by order. direct such authority 1b apply to the Collector (Appeals) fer the determination of such points atising out of the decision or order as may be specified by the Collector ‘of Central Excise in his onder (3) No order shall be made under sub-section (1) or sub-section (2) afier the expiry of one year from the date of the decision or order of the adjudicating authority. (4) Where. it pursuance of an order under sub-section (1) or sub- section 2), theadjudicating euthority or the authorised officer makesan ‘application to the Appellate Tribunal or the Collector (Appeals) within @ period of thirty days from the date of communication of the order under sub-section (1) or sub-section (2) to the adjudicating authority, such application shall be heard by the Appellate Tribunal or the Collector (Appeals), as the case may be, as if such application were aa. appeal made against the decision or order of the adjudicating authority and theprovisions of tho Act regasding appeals, including the provisions ‘of sub-seetion (4) of seetion 35-B shall, so Faras may be, apply to such application. (5) The Central Board of Revenue, of the Collector of Central Excise within his jurisdiction, may call for and examine therecord of any decision or order where the decision or order is of the nature referred to in the first proviso to sub-section (1) of section 35-B for the purpose of | salidying itself or, as the case may be, himself as to the legality or proptiety of the decision or order passed therein by a subordinate officer and may pass such order as it or he may think Tit: Provided that no order confiscating goods of greater value, oF enhancing any fine in lieu of confiscation, or imposing or enhancing any penalty, or requiring payment of any duty not levied or short levied or reducing theamount of rebate shall he passed unless the person affected thereby has been given an opportunity ofshowingcause against itand of being heard in person or through a counsel oF other person duly authorised by him:Lo ) 20 ‘THE GAZETTE OF PAKISTAN, EXTRA, JULY 1, 1989 Provided further chai no record of aay proceedings relating to any decision or order passed by an officer of Central Excie shall be called for Seetion 38 the following shall be substituted, namely — "36 Revision by the Federal Government) The Federal Governtnent may, of the application of any person aggrieved by any ‘order passed under section 35-A where the orJerisof the nature relerred to in the first provise to sub-section (I) of section 3$-C annul or medify such order, Explenation—For the purpose of this sub-section, “order passed under section 35A” includes an order passed under that section before the appointed day against which an appeal bas not been preferred before that day and could have been, ifthe said seotion had net come in force, preferred after the appointed day of the Appellate Tribunal, (2) An application under sub-section (1) shall be. made within thirty days from the date of the communication to the applicant of the ‘orcer against which the application is being mace: Provides that the Federal Government may permit the fits of application after the expity of relevant period referred to in sub-section (if iis satisfied that there was sufficient cause for not presenting it within that period. (3) Anapplication under sub-section (1) shall be in such form and shall be verified in such manner as may be specified by the rules made in this behalf and shajl be accompanied by a fee of two hundred rapees, (4) The Feceral Government may, of its own motion, annul oF ‘modify any order referred to in sub-section (1), (3)_No order enhancing any penalty or fine in lieu of confiscation or confiscating goods of greater value shall be passed under this section — (a). in any case in which an order passed under section 35-4 has enliznced any penalty or fine in lieu of confiscation or has confiscated goods of greater value; and (>) im anyother case, unless the person affected by the proposed order thas boon given notice to show cause against it within one year from the date of the order sought fo be annulled or modified. (6) Where the Federal Goverament is ofthe opinion that any duty oF Excise has not been levied or has been shor'-levied. no order levying (parea ‘oreabaneing the duty shall be made under this section unless the person affected by the proposed order is given notice to show cause against it Within the time limit prescribed for the purpose”, afler section 36-A, the following mew sections shall be inserted, namely: — “36-B, Deposit, pending appeul, of duly demanded or penalty tevied—Where in any appeal under this Chapter the decision or order 2ppealed against relates to any duty demanded in respect of excisable goods which are not under the control of Central Excise authorities or excisabie services or any penalty levied under this Act, the person desirous of appealing against such decision or order shall pending the appeal, deposit with the proper officer the duty demanded or the penalty levied: Provided that where in any particularcase, the Collector (A ppeals) or the Appellate Tribunal is of the opinion that the deposit of duty demanded or penalty levied would cause undue hardship to such person, the Collector (Appeals) of, as the ease may be, the Appellate Tribunal may dispense with such deposit subject to such conditions ashe oritttay deem fit to impose so as to safeguard the interest of revenue. 36-6, Statement of case to High Court—(1} The Collector of Central Excise or the other party may, within thirly days of the date upon which he is served witk notice ofan order under scction 35-B (not beingan orderrelating, among other things, to the determination of any question having. relation (o the rae of duty of excise or to the valu of excisable goods and services for purposes of assessment), by application in such form as may be specified by rules madein this behalf, accompanied, where the application is made by the other party, by a fee of two hundred rupees, require the Appellate Tribunal to refer to the High Court any question of law avising out of such osdcr and, subject to the other provisions contained in this section, the Appellate Tribunal shall, within ninety days of the receipt of such application, draw up a statement of the case and refer it to the High Court: Provided that the Appellate Tcibunal moy, if itis satisfied thet the applicant. was prevented by sufficient cause from presenting the application within the period hereinbefore specified, allow it to be presented 2} On receipt of notice that an application has heen made under sub-section (1), the person against whom such epplication has been made may, notwithstanding that he may nol have filed such an application, file within forty-five days of the receipt of the notice, a memorandum of cross-objections verified in the prescribed manner against any part of the order in relation fo which an application for reference has been madcand suck memorandum shall be disposed of byTHE GAZETTE OF FARE [are 1 JULY 4, 1989 the Appellate Tribunal xs ifit were an applicazion presemted within the time specified in sub-section (1) 3) UF, nan application made under sub-section (1). the Appellate Tribunal refuses to state the case on the zrotind that no question of late aanses, the Collector of Central Pxcise, ors the case may be. the other erly may. within one hundred twenty days from the date on which heis served with notice uf such refusal, upply to the High Court and the High Court may. ifits notsatistied with the correctness ofthe decision of the Appellate Tribunal, require the Appetiare Tribunal to state the ease aid torefer it, and on receipt of any such requisition, the Appeliate Tribunal shall state the case and refer it accordingly 44) Where in the exercise of its powers under subsection (3), the Appellate Tribunal refuses to siatea case which il has been required Dy an applicant to state, the applicant may, within thirty days from the date, bt which ne receives notice of such refusal, withdraw his application and, if he does so. the fee, if any, paid by hin shall be refunded 36D. Stetemeni of case 10 Supreme Court in Certain cares. At, on an application made ander section 36-C, the Appellate Tribunal is of she opinion chat, on account of conflict in the decisions of High Courts in respect of any particular question of law. it Is expedient that « reference should be mude direct to the Supreme Court. the Appellate Tribunal may draw up « stutersent of the case and refer it through the Chaitman direct to the Supreme Court 36-E. Powers of High Court or Supreme Court to require sratemem tobe amended —I the High Court or the Supreme Court isnoi stisfied ‘that the staiement in a ease referred to it is sufficient to enable it to determine the cuestions raised thereby. the Court may refer the case ‘buck to the Appellate Tribunal for the purpose of making uch additions thereio or alierations therein as it may cireet in that behalf, X6-P Case hefore High Court to be heard by mot less than two Judges: —N) When any case has been referced to the Migh Court under section 36-C. it shall be heard by a Bench of not less than two Judges of the High Court and shall be decided in accordance with the opinion oF such Judges or of the majority, if any, of such Judges (2), Where there is no such majority, the Judges shall state the point of la upon which they differand the ease shall then be heard upon that point only by one of mors of che other Judges of the High Court designated by the Chief Justice, and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first beard it, 36-G. Pevision of High Cert or Supreme Court on the case soted—1) The High Court or the Supreme Court hearing any suchParti THE GAZETTE OF PAKISTAN, EXTRA, JULY 1, 1989 103 cease shall decide the questions of law raised therein and shail deliver its judgement thereon containing the grounds on which such decision is founded and a copy of the judgement shall be sent under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which shall pass such orders as are necessary to dispose of the case in conformity with such judgement 2) The costs of any teference to the High Court or the Supreme Court. which shall not include the fee for making the reference, shall be. in the discretion of the Court 36H. Appeal to Supreme Cowt—An appeal shall fie to the Supreme Court from— (a) any judgement of the High Court delivered on a reference made under section 36-C in any case which, on its own motion or on aa oral application made by or on behalf of the party agarieved. immediately after the passing of the judgement, the High Court certifies to be a fit one for appeal to the Supreme Courts or {b}_ enyorder passed by the Appellate Tribunel relating. among cther things, to the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment, 361, Hearing before Supreme Court —(1) The provisions of the Code of Civil Procedure, 1908 (V of 1998). relating to appeals to the Supreme Cour! shall, sofaras may be. apply in the case of apoeals under section }6-Has they apply in the ease of appeals from deerees ol « High Court - Provided that nothing in this sub-section shall be deemed to affect the provisions of sub-section (1) of section 36-G or section 36-1 (2) The cost of the appeal shall be in the discretion of the Supreme. Court 2) Where the judgement of the High Court is varied or reversed in the appeal, effect shall be given ta the order of the Supreme Court in the ‘manacr provided in section 36-G in the case ofa judgement of the High Court 361. Sums due 10 be paid notwithstanding reference ete. Not- withstanding thal a reference ties been made to the High Court or the Supreme Court or an appeal has bezn preferred to the Supreme Court, Sums due to the Government as a result of an order passed under sub- section (1) of section 35-C shall be payable in accordance with the order so passedae 104 ‘THE GAZETTE OF PAKISTAN, EXTRA. JULY 1, 1989 [Pace 1 Resi = Rpatestentitewiehmhinnnees Toamemmntinnstinnaiind the day on which the order complained was served, ard if the party preferringtheanpeal or making the application was not furnished with a copy of the order when the notice of the order was served upon him, the time requisite for obtaining a copy of such order shall be excluded, 36-L, Transfer of certain pending proceedings {1} Every appeal ‘which is pending immediately before the appointed day before the Central Board of Revenue under section 35 as it stood immediately before that day ard any maiter arising out of of connected with such proceedings and which is so pending shall stand transferred on the appomted day to the Appellate Tribunal and the Appellate Tribunal ‘may proveed with such appeal or matter from the stage at which it then ‘was or may re-hear the same, as it may deem fit. (2) Every proceeding in revision which is pending immediately ‘before the appointed day before the Federal Government ander section 36asil stood immediately before that day and any matter arising out of for connected with such proceedings which is so pending, shall stand transferred on the appointed day to the Appellaic Tribunel and the Appallate Tribunal may proceed with such proceeding or matter from the stage 2t whieh it then Was or mayre-hear the same, sit may deem fit, as if such proceeding or matter were an eppeal filed before it: Provided that, if any such proceeding or matter relates te at order where— (a) in any disputed case other than a case where the determination of any question having relation to the rate of duty of excise or to the valve of excisable goods and services for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or (6) the amount of fine or ponalty determined by such orders does not exezed ten thousand rupees, such peoczeding or matter shall continue to be dealt with by the Federal Government as if the said section 36 had not been substituted: Provided further that the applicant or the other party may make demand to the Appellate Tribunal that, before proceeding further with that proceeding or maiter, he may be Te-heard. @) Bvery proceeding which is pending immediately before the appointed day before the Central Board of Revenuc or the Collector of Central Excise under section 35-A. sit siood immediately before that day, end any matter arising out of or connceted with such proceeding and which is 69 pending shall continue to be dealt with by the CentralSay Part Il THE GAZETTE OF PAKISTAN, EXTR: JULY 1, 1989, 405 Board of Revenueor the Collector of Central Excise, as the case maybe, asi the said seztion had not been substituted, I6L. Definitions.—tn this Chapter. (a) “appointed day" means the date of coming into force of the Finance Act, 1989; (b) “High Court” means in relation to any province the High Court for that province; and (6) “Chairman” means the Chairman of the Appellate Tribunal.” 8) the First Schedule to the said Act shall be amended in the manner specified in the Second Schedule to this Act. 4. Amendment of Act II of 1951.—The following amendments shall be made in the Sales Tax Act, 1951 (TI of 1951), namely: — U1) To seetion 2. (D) for sub-section (2) the following shall be substituted: — “(2) Appellate Tribunal means the Appellate Tribunal appointed under the Central Excises and Salt Act, 1944 (I of 1944), and the Customs Act, 1969 (IV of 1969 and (i) after subs namely:— on (14), the following new sub-section shall be inserted “(I4.A)_ “retailer” means a person who ordinarily carries on a business of selling goods in retail; (2) in section 3— (_insub-section (1) in ckause (c), alter the word “wholesaler”, the words ‘of retailer” shall be added; and (i) afer sub-section (5), the following new sub-section shell be inserted, namely — “(A)_ Wherethe Hoard so directs, the tax in respect of goods specified in clause (6) of sub-section (1) shall be collected from the wholesaler and retailer in the manner as may be prescribed”; (2). for section 6 the following shall be substituted, namely — "6. The Appellate Tribunal) The Appellate Tribunal shall discharge such functions as are assigned to it by or under this Act.JULY 1. (earet Yowwithstending anything contained in the Act, an appeal under section 15, elating to the goods specified in clauses (a), (c) and in respect of goods purchased from a local manufacturer without payment of sales tax under clause (f) of sub-section (1) of section 3, shall be filed and heard asif it was.an appeal under the Central Excises and Salt Act, 1944 (1 of (944), and the provisions of the said Act and the rules made thereunder shall, so far as may be and with necessary modifica apply. ) Notwithstanding anything contained in the Act, an appeal undersoction (5, relating to the goods mentioned in clauses (0), (@) and in respect of imported goods purchased withont payment of tax under clause (fof sub-section (1) of section 3, shall be fled and heard as i ¢ was an appeal under the Customs Act. 1969 [IV of 1969), and the provisions ofthe said Act and the tules mace thereunder shall So far as may be and with necessary modifications, apply.” (4) After section 9, the following new section shall be insested, namely:— “9A. Retuilers’ licences—The provisions of section 9 shall, mutatis mutandis and with such modifications as the Board may prescribe, apply for grant of annual licences to retailers.” 5. Amendment of Act IY of 1969.—T he following amendments shall be made in the Customs Act, 1969 (IV of 1969), namely:— (1) in section 2, (a) for clause (a) the following shall be substituted, namely:— ay ‘adjudicating authority” means any authority competent to pass any order ar decision under this Act, but does not include the Board, the Collector (Appeals) or the Appellate Tribunal”; [b) after clause (2), substiuted as aforesaid, following new clauses shall be inserted, namely:— “(aa) “agent” means a person Heenced under section 207 or permitted to transact any business under section 208; (aaa) “Appellate Tribunal” means the Customs, Eacise and Sales Tax Appellate Tribunal constituted unde: section 194;"; (©) after clause (b). the following new clauses shall be inserted, namely:— (bb) “assessment” includes provisional assessment, reassessment and any order orassessment in which the duty assessed is nil2F Pare) THE GAZRTTE OF PAKISTAN, EXTRA. JULY 1, 1989 107 (pbb) “baggage” includes unaccompanied baggage but does not include motor vehicless"; and (a) afier clause (D, the following new clause shall be inserted, namely:— (11) “Collector (Appeaisy” means a person appointed to be a Collector, of Customs (Appeals) under section 3:"; 2) in secticr (a) after clause (a), the following new clause shall be inserted, namely:— “(aa)_ a Collector of Customs (Appeals)”; (@)_ in section 18, for sub-section (2) the Following shall be substituied, nariely:— “(2) the Federal Government may, dy notification in the official Gazette, levy, subject to such concitions, limitations or restric= ‘ions as it may deem fit to impose, a regulatory duty on all or any of the articles specified in the First Schedule at a raicnot exceeding Ihundred per ceat of the value of such articles as determined under section 2500r, as the case may be, ited under section 25B, andmay, by a like notification, levy a regularcory duty on all or any of the articles exported from Pakistan at a rate not exceeding hundred percent of the amount which represents the value of such articles, as determined or fixed as aforesaid (4) in section 98, in sub-section (1), for the words and figure “one year following the date of exccution of the bond undersection 86in respect of themand consumer goods so notified may remain in the warehouse fora period of six months” the words “six months following the date of their admission into the warehouse and consumer goods so notified may remain in the yarchouses for a period of three months” shall be substituted, (9) im section 156, in sub-section (1), in the Table, entry against, serial No. 12 in column 1. in column 2, for the words “ten thousand” the words “iwenty-five thousand” shall be substituted; (©) for Chapter XIX the following shall be substituted, namely: — “CHAPTER XIX (APPEALS AND REVISIONS) 193. Appeals to Collector { Appeals).—(1) Any person aggrieved bby any decision or order passed under this Act by an officer of customs, lower in rank than a Collecto: of Customs may appeal to the Collector23 ‘THE GAZETTE OF PAKISTAN, EXTRA, JULY 1, 1989 Pare t (Appeals) within thirty days of the date of the communication to bim of Provided that an appeal filed after the expiry of tairty days may be admitted by the Collector (Appeals) if he is satisfied that the appellant had sufficient cause for not filing the appeal within that period Q) An appeal under this section shall be ia such Form and shall be verified in such manner as may be specified by rules made in this behalf. 193A. Procedure in appeal—{) The Collector (Appeals) shall give an opportunity to the appellant to be heard if he so desires. 2) The Collector (Appeals) may, at the hearing of an appeal. allow the appellant to go into any ground of appeal not specified in the grounds of appeal, if the Collector (Appeals) is satisfied that the omission of that ground from the grounds of appeal was net wilful or unreasonable @) The Collector (Appeals) may, after making such further inquiry as may be necessary, pass such order as he thinks fitconfirming, modifying or annulling the decision or order appealed against, or may refer the case back to the adjudicating authority with such direction as he my think fit fora fresh djucication or decision, as the case may be, after taking additional evidence, if necessary Provided thet an order enhancing any penalty or fine in liew of confiscation or confiscating goods of greater value or reducing the amount of refund shall not be passed untessthe appellant has been given a reasonable opportunity of showing cause against the proposed order: Provided further that. where the Collector (Appeals) is of the opinion thai any duty has not becn levied or has been short-levied or erroneously refunded, no order requiring the appellant to pay any duty not levied, short levied or erroneously refunded shall be passed unless the appellant is given notice within the time limit specified in seetion 32 to show cause against the proposed onder: (4) The order of the Collector (Appeals) disposing of the appeal shal be in writing and shall state the points for determination. the decision thereon and the reasons for the decision. (5) On the disposal of the appeal. the Collecior (Appeals) shall ‘communicate the arder passed by hirn to the appellant, the adjudicating authority and the Collector of Customs. 194. Appellate Tribunal—1) The Federal Government shall ‘constitute ani Appellate Tribunal to be called the Customs, Encise and Sales Tax Appellate Tribunal consisting of as many judicial and.Pare I) 24 THE GAZETTE OF PAKISTAN, EXTRA, JULY 1, 1969 109 ‘echnical members as it thinks fit to exercise the powers and discharge the functions conferred on the Appellate Tribunal by this Act. (2) A judicial member shail be a person who is a Judge of a High ‘Court of who has for a period of not ‘less than five years exercised the powersof 2 District Judge and t qualified to bea Judge ofa High Court or who is or has been an Advocate of a High Court and is qualified to be a Judge of High Court, @) A technical member shall be an officer of Customs and Excise Group equivalent in rank to that of a Member, Ceatral Board of Revenue, (4) The Federal Government shall appoint one of the members of the Appellate Tridural to be the Chairman thereof. (5) The terms anc conditions of appointment of the Chairman and. judicial and technical members shall be such as the Federal Government may determine Provided that where a Judge of « High Court is appcinted as the Chairman of the Appellate Tribural his terms and conchtions shall be the same 2s those of a Judge of the High Cour 194.4. Appeais 10 the Appellate Tribetal—41) Any person aggrieved by any of the following orders may appeal to the Appellate ‘Tribunal against such ordets:— (@) a decision or order passed by the Collector of Customs as an adjudicating authority, (b) aa order passed by the Collector (Appeels) under section 193; (©) an order passed under section 193, as it stood immediately before the appointed day: (a) an order passed by the Board or tae Collector of Customs under section (95, as it stood immediately before the appointed day Provided that no appeal shall Tie to the Appellate Tribunal, and the Appaliate Tribunal shall not have jurisdiction to decide any appeal, in3s OF PAKISTAN, EXTRA, JUI a 1989 (Pare respect of any order referred to in sub-section (I} if such order reiates to (a) any goods imported or exported as baggage: (b). any goods loaded in a conveyance for importation into Pakistan, ‘but which are not unloaded at their place of destination in Pakistan; or so much of the quantity ofsuch goods ashas not been unloaded at any such destination if goods unloaded at such Gestination are short of the quantity reqtiired to be unloaded at ther destination; (0). repayment of customs-duty under clause (€) of setion 21: (@)__ payment of drawback as provided in Chapter VI, and the rules ‘made thereunder: Provided further that the Appellate Tribunal may. in its discretion, refuse toadmit an appeal in respect of an order referred to in sub-section. (1) whers— (the value of the goods confiscated without option having been given to the owner of the goods to pay a fine inliew of confiscation under section 181; or (ii) im any disputed case other than a case where the determination of any question having. relation to rate of duty of customs or to the value of goods for purposes of assessment is inissueor is oneo! the points in issue, the difference in duty involved or the duty involved: or {ii) the amount of fine or penalty determined by such order: does not exceed ten thousand rupees: (@) The Board or the Collector of Customs may. ifitor.as the ease may be, he is of the opinion that an osder passed by the Collector (Appeals) under section 193 isnot legal or proper, direct the approprizie officer 1o appeal nits or, as the case may be, his debaif co the Appellate Tribunal against such order. (3) Every appeal under this section shall be fled within sinty days from the date on which the decision or order sought to be appealed aaguinstis communicated to the Board or dne Collector of Cusiouts, ras the ease may be, the other party preferring the appeal (4) On receipt of notice that an appeal has been preferred under thissection, the party agaiast whom tbe appeal has been preferred may. notwithsianding that he may not have appealed against such order opare ot ‘THE GAZETTE OF PAKISTAN, EXTRA. JULY 1, 1989 m4 any part thereof, file, within thicty days of the receipt of the notice, a memorandum of eross-objections verified in such manner as may be specified by rules made in this behalf against any par: of the order appealed against and such memorsndum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in’sub-section (3). (5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-scetion (3) or sub-soction (4), if it is ‘satisfied that there was sifficent canse for not presenting it within that reriod. (©) An appeat to the Appellate Tribunal shail be in such form and shall be verified in such manner as may be epecified by rales made in this bbehalf'and shall, except in the case of anappeal referred to in sub-section Q)or a memorandum of eross-objections referred to in sub-section (4), be accompanied by a fee of two hundred rupees 194-B. Orders of Appellate Tribunal) The Appellate ‘Tribunal may, after giving the parties to the appeal an opportunity of teing heard, pass such orders thereon as it thinks Ft, confirming, ‘modifying or annulling the decision or order appealed against or may refer the case back to the authority which passed such decision or order ‘with such directions as the Appellate Tribunal may think fit, for afresh adjudication or decision, as the case may be, after taking additional evidence, if necessary. Q) The Appellate Tribunal may. at any time within three years from the date of order, with a view to rectifying any mistake apparent from the record, amend any order passed by itunder sub-section (1) and shall made such amendments if the mistakeis brought to itsnoticeby the Collector of Customs or the other party to the appeal: Provided that an amendment whieh has the effect of enfiarcing the assessment or reducing a refund or otherwise increasing the ability of the other party shall not be made under this sub-section, unless the Appellate Tribunal has given notice to che party ofits intention to do so and has allowed 2 reasonable opportunity of being heard. (3) The Appellate Tribunal shall send a copy of every order passed by it under this section, disposing of an appeal. to the Collector of Customs and in valuation cases alco to the Controller, Valuation, and the other party to the appeal. ) Save as otherwise expressly provided in section 196 and 196 E, an order passed by the Appellate Tribunal in appeal shall be final.2, THE GAZETTE OF PAKISTAN, EXTRA, JULY 1, 1982 Pare 194-C. Procedure of Appellate Tribunal{1) The powers and functions of the Appellate Tribunal may be exercised and cischarged by Bonches constituted by the Chairman from amongst the members thereof. (2) Subject tothe provisions contained in sub-sections (3) and (4), a ‘Bench shall consist of one judicial member und one technical member (3) Every appeal against a decision or order relating, among other ‘things, to the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment, shall be heard by a Special Booch constitutcd by the Chairman for hearing such appeals and such Bench shall consist of not less than two members and shall include at least one judicial member and one technical meraber. (4) The Chairman or any other member of the Appellate Tribunal authorised in this behalf by the Chairman may, sitting singly, dispose of any cate whic Is been alloted to the beach of whic: hes ¢ member (2) the value of the goods confiscated without option having been sien to the owner of the goods to pay @ fine in hew of confiscation under section 181; oF (b) in any disputed case, other than a case where the determination of any question having a relation to the rate of duly of eustoms or to the value of goods for purposes of assessment is nissue or sone of the points in issue, the difference in duty involved or the duty involved ; or (©) the amount of fine or penalty involved ; does not exceed one hundred thousand rupees, (5) If the members of a Bench differin opinion on any point, the point shall be decided according to the opinion of the majority, if there isa majority, but if the membersare equally divided, they shall state the point ot points on which they differ and the case shall be referred by the Chairman for hearing on sich point or points by one or more of the bother membersof the Appellate Tribunal, and such point or points shall be decided according to the opinion of the majority of the members of the Appellate Tribunal who have heard the case including those who first heard it Provided that, where the members of a Special Bench are equally divided, the points on which they differ shall be decided by the Chairman. (6) Subject to the provisions af this Act, thé Appellate Tribunal shall have power to regulate its own procedure and the procedure of thePare I) BS ‘THE GAZETTE OF PAKISTAN, EXTRA. JULY 1, 1989 413 Bexches thereof in all inaticrs arising out of the exercise ofits powers or Of the discharge of its furctions, including the places at which the Benches shall hold their sittings. (7) The Appellate Tribunal shall, for the purposes of discharging. its functions, have the same powers as are vested iti a court under the Code of Civil Procedure, 1908 (V of 1908). when trying a suit in respect Of the following matters, namely— (a) discovery and inspection: (b) enforcing the attendance of any person and examining him on cath; (©) compelling the production of books of account and other documents; and (@)_ issuing commissions. (8) Any proceeding before the Appellate Tribunal shall be deemed to be judicial proceeding within the meaning of sections 193and 228.1nd for the purpose of section 196 of the Pakistan: Penal Code (Act XLV of 190), and the Appellate Tribunal shall be deemed to bea Court forall the parposes of sections 480and 482 ofthe Code of Criminal Procedune, 1998 (Act V of 1898), 195. Powers of Beard oF Collector of Cusioms 10 puss certain orders (1) The Board miay, of 1s own motion, call for and exenine the record of any proceeding in which « Collestor of Customs as at) adjudicating authority has passed any decision or order under this Act for the purpose of satisfying itselPas to the legality or propriety of any such decision or order and may, by ower. direst the Collector to epply ta the Appellate Tribunal for the determination of such points arising out of the decsion or order as may be specified by the Board in its order. 2) The Collector of Customs, may, of his own motion, call for and examine the record of any proceeding in which an adjudicating authority subordinaeto him has passed any decision or order under this ‘Act for the purpose of satisfying himself as io the legality or propriety of any such decision or order and may, dy order. disect such authority to apply to the Collestor (Appeals) for the determination of such points arising out of the decision or order as may be specified by the Collector ‘of Customs in his order. (3) No order ball be made under sub-section (1) or sub-section (2) aller the expiry of one year from the date of the decision or order, (4) Where in pursuance of an order under sub-section (1) or sub= section (2) the Collector of Cusioms or any officer of Cusioms authorised in his behalf by him makes an application to the Appellate Tribunal or the Collector (Appeals) within a period af thisty day's fromm34 4 THE GAZETIE OF PAKISTAN, EXTRA, JULY 1, 1989 (earc the date of communication of the order under sub-section (1) or sub- section (2), suet application shail be heard by the Appellate Tribunal or the Collector (Appeals), as the ease may be, as such application were ‘an appeal made agains the decision or order of the adjudicating authority and the provisions of the Act rezarding appeals, including the provisions of sub-section (4) of section 196 shell, so faras may be, apply 10 such application, (3) ‘The Board, or the Collector of Customs within his jurisdiction, may call for and examine the record of any decision or order where the ocision ct order is of the nature referred Lo in the first proviso to sub- section (I) of section 194-A for the purpose of satisfying itself or, as the case may be, hitaself aso the legality on propriety of the decision or order passed therein by a subordinate officerand may passsuch orders it or he may think fit: Provided that no order confiscating goods of greater value, or enhancing any fine in fey of confiscation, or imposing or enhancing any penalty, or requiring payment of any duty not levied or short levied or reducing the amount of repayment oF customs duty or draw back shall be passed unless the person alfected thereby has been given an opportunity of showing cause against it and of being heard mn person or through a counsel or other person duly authorised by him Provided further that no record of eny proceedings relating to any decision or order passed by an officer of cusioms shall be called for and examined after the expiry of two years from the date of such decision or order I9S-A. Revision fy the Federal Government —() The Federal Government mey, on the application of any person aggrieved by any ‘order pasted under section 193, where the ordet is of the nature referred to in the first proviso to sub-section (1) of section 194-4 annul or modify such order, (2) An application under sub-section (1) shall be made within thiety days from the date of the communication co the applicant of the order against whick the application is heing made Provided that the Federal Government may permit the: fling of pplication after the expiry of relevant period referred to in sub-section (2) if itis satisfied that there was sufficient canse for not presenting it ‘within that period, (3) Am application under sub-section (1) shall bein suck form and shall be verified in such manner as may he specified by rules made in this behalf and shall be accompanied by a fee of two hundred rupees, (4) The Federal Government may, of its own motion, annul or inodily any order referred to in sub-section (1),(5) No order enhancing any penaliy or fine in iew of confiscation ‘or confiscating goods of greater value shall be passed under this section— (a) in_any case in which aa order passed under section 193 has enhanced any penalty or fine in how of confiscation or has confiscated goods of greater value, and (6) in any othe: case, unless the person affected by the proposed order has been given notice to show cause againstit within one year from the date of the ofder sought to be annulled or modified. 6. Where the Federal Government is of the opinion that any duty of cusions has not been levied or has been short levied or has been erroneously refunded, no order levying or enhancing the duty shall be rade under this section unless the person affected by the proposed order is givee notice to show cause against it within the time limit specified in section 32. 195-B. Deposit, pendéug appeal, of duty demanded or penalty ‘evied—Where, inany appeal under tis Chapter, the decision or order ‘appealed against relates o any duty demanded in respect of goods which aacenot under the control of hecusiomsauthorities or any penalty levied under this Act, che person desirous of appealing against such decision or ‘order shal, pending the appeal, depostt with the proper officer the duly demanded or the penalty levied Provided that, where, in any particular case, the Collector (Appeals) of the Appellate Tribunal is of opinion that the deposit of Guty demanded or ponalty levied would cause undue hardship to such petson, the Collector (Appeals) or, as the case may be, the Appellate Tribunal may dispense with such deposit subject tosuch conditions as he or it may deem fit impose so as to safeguasd the interests of revenv. 196. Statement of case 10 High Court—{1) The Collector of Customs, oF the other party may, within thirty days of dhe date upon which he is served with notice ofan order under section 194-B (not being aan order relating, among other things, to the determination of any ‘question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment). by application im such form as ‘muy be specified by rules made in this behalf, accompanied, where te application is made by the other party, by a fee of two hundred rupees, require the Appellate Tribunal to reer to the High Court any question, of law arising owt of such order and, subject to the other provisions Contained in this soction, the Appellate Tribunal shall, within one hhanéred and twenty days of the reesipt af such application, draw up a Statement of the cass and refer it to the High Court: Provided that the Appeliate Tribunal may, if itis satisfied that the applicant wes prevented by sufficient cause from presenting the116 36 ‘WE GAZETTS OF PAKISTAN, EXTRA, JULY 1, 1989 [rare (2) On recep: of notice that an application has been made under sub-section (1), the persot against whom such application has been made, migy, notwithstanding that he may not have filed such an application file, within forty-five days of the receipt of the nolice, a niemorandum of cross objections verified in such « managr as may be specified by rules made in this behalf against any par of the order in ‘elation to which en application for reference has been made and such memorandum shall bedisposed of by the Appellate Tribunals ifit were an application presented within the time specified in sub-section (1). (3) If, on an application made under sub-section (1). the Appellate Tribunal refuses to State the case on the pround that no question of law arises, the Collector of Cusioms, or, as che case may be, the other party may, within one hundred twenty days from the date on which he is served with notice of such refusal, apply to the High Court and the High Court may, ifitis not satisfied with the correctness of the decision of the Appellate Tribunal, require the Appellate Tribunal to sate the case and to refer it, and on reccipt of any such cequisition, the Appeliate Tribucal Stall stale the case and refer it accordingly, (4) Wherein the exercise of its powers under sub-section (3), the Appellate Tribunal tefuses to state a case which it was required by an applicant tostate, the applicant may, within thirty days irom the date on which he receives notice of such refusal, withdraw his application and, if he does so, the fee, if any, paid by him shall be refunded 196-A. Statement of case to Supreme Court in certain eases —If, on aan application made under section 196, the Appellate Tribunal is of the opinion that, of account of conflict in the decisions of High Courts in respect of any particular question of law. itis expedient that reference should be made direct to the Supreme Court, the Appellate Tribural may draw up a statement of the case and refer it through the Chairman direct to the Supreme Court. 196-B. Power of High Court or Supreme Court to require staremen tobe amended —If ihe High Court or the Supreme Court is nol satisfied shat the statement in a case referred to it is sufficieaL to enable it to determine the questions raised thereby, the court may refer thecuse buck to the Appellate Tribunal for the purpose of making such additions thereto or alterations therein as it may diroet in this bchall, 196-C. Case before High Court to be heard by not less thar tor Juedges.—(1) When any case has been referred to the Higa Court under section 196. it shall be heard by a Bench of ot less than two Judges of the High Court aad shall be éecided in accordance with the apinian of such Judges or of the majority, if any, of such Judges‘THE GAZETTE OF PAK JULY 1, 1989 u7 (2) Where there is no such majority, the Judges shall state the point cof lay upon which they differ and the case shall then be heard upon that point only by one or more of the other Judges of the High Court designated by the Chief Justice, and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who fisst heard it, 196-D. Decision of High Court or Supreme Court on the case stated—(1) The High Court or the Supreme Court hearing any such ‘case shall decide the question of law raised therein, and shall deliver its Judgement thereon containing the grounds on which such decision is, founded and a copy of the judgement shall be sent under the seal of the Court and the signature of the Registrar to the Appellate Tribunal ‘which shall pass such orders as are necessary to dispose of the case in conformity with such judgement. Q) The costs of any reference to the High Court or the Supreme Couri, Which shal not include the fee for making the reference, shall be in the discretion of the Court 196-E. Appeal to Supreme Court—An appeal shall ie to the Supreme Court from: (a) any judgement of the High Court delivered on a reference nade under section 196 in any case which, on its own motion or on an oral application made by or on behalf of the party aggrieved, immediately after the passing of the judgement, the High Court certifies to be a fit one for appeal to the Supreme Court, or (b) any order passed by the Appellate Tribunal relating, among other things, to the determination of any question having 2 relation to therate of duty of customs orto the value of goods fer purposes of assessment, 196P. Hearing before Supreme Court-—(1) The provisions of the Code of Civil Procedure, 1908 (V of 1908), relating 10 appeals to the Supreme Court shall, so far as may be, apply in the case of appeals tunder section 196 as they apply in the case of appeals from decrees of a High Court Provided that noting in this sub-section shall be deemed to affect the provisions of sub-section (1) of section 196 or section 196 G. (2) The cost of the appeal shall be in the discretion of the Supreme. Court (3) Where the judgement of the High Court is varied or reversed in the zppeal, affect shall be given to the order of the Supreme Court in the manner provided in section 196 in the case of a judgement of the High Court36 8 THE GAZETTE OF PAKISTAN, EXTRA, JULY 1, 1989 part | 196-G. Stuns due to be paid novwithstanding reference ete.—Not- withstanding that a reference has beor: made to the High Court oF the Supreme Court or an appeal has been preferred to the Supreme Court, sums due to the Goverament as a result of an order passed under sub- section (I) of section 194 B shall be payable in accordance with the order 50 passed. 196-4. Exclusion of time taken for copy—In computing the pericd ‘of timitation specified for an appeal or application under this Chapter, the day on which the order complained of was served, andl if the party preferring the appeal or makingthe application was not furnished witha ‘copy of the order when the notice of the order was served upon him, the time requisite For obtaining a copy of such order, shall be excluded. 196-1, Transfer of certain ponding proceedings (1) Every appeal whichis pending before the Board under section 193 as it stood immediately before the appointed day and any matter arising out of or connected with such Proceedings shall stand transferred on the ‘appointed day to the Appellate Tribunal and the Appellate Tribunal may proceed with such appeal or maiter from the stage at which it then ‘was or may re-bear the same, 2s it may deem fit. (2) Every proceeding which is pending immediaicly before the appointed day before the Board or the Collector of Customs under section 195 as it stood iaunediately before that day, and any mawter arising out of or connected with such proceedings and which is $0 pending shall continue 1o be dealt with by the Board or the Collector of Customs. as the case may be, as if the said seetion had not been substitu. (3) Every procecding pending before the Federal Government under section 196 as it stood immediately before the appointed day and any matter atising out of or connected with such proceedings which is so pending 3 Il stand transferred to the Appellate Tribunal and that Appellate Tribunal may proceed with such proceedings or matter from. the stage at which it then was or may re-hear the same, as ij may deem fit, as if such proceedings or matter were an appeal filed before it Provided that if any such proceeding or matter relates to an order where (a) ) the value of the goods coniiseated without option having been siven £0 the owner of the goods to pay a finein liew of confiscation under section 1813 or in any disputed case, other than a case where the determination of ‘any question haying a relation to the rate of duty of customs arto the value of goods for purposes of assessment isin issuc or isone of the points in issue, the difference in duty invoWed or the duty involved: orPare] ‘THE GAZETTE OF PAKISTAN, EXTRA. JULY 1, 1989 Lg (©) the amount of fine or penzlty determined by such order; does not exceed ten thousand rupees, such proceeding or matter shall continue to be dealt with by the Federal Government asf the said section 196 had not been Substituted: Provided farther that the applicant or the other party may make demand to the Appellate Tribunal that, before proceeding further with that proceeding or matter, he may be e-heard. 196-5. Definitions —In this Chapter — (a) “Appointed day” means the date of the coming into faree of the Finance Act, 1989 (b) “High Court” means in relation to any Province, the High Court for the Province: (©) “Chairman” means the Chairman of the Appellate Tribunal.” ; (7) for section 202 the following shall be substituted, namely— = “201. Recovery of Goverament dues—{1) When, under this Act or undor any other law for the tims being in force, which provides for any tax. duty or other levy being collected in the same mannet as customs- duties are collected, @ penalty is adjudged against, or notice or demard is served upon, any person calling for the payment of sny amount unpaid which may be payable by way of penalty or by way of duty, tax orother levy or under any bond or other instrument executed under this Act or Such other law or the rules made thereunder, the appropriate officer— (2) may deduct or require any other officer of Customs, Central Excise and Sales Tax to decuct such amount from any money owing to such person which may be under the control of the Customs, Central Excise or Sales Tax authorities; or (b)_ ifitcannot beso recovered, may recover, ormay require any other olficer of Customs, Central Excise or Sales Tax to recover, such amount by detaining and selling any goods belonging to such person which are under the control of the Customs, Central excise ‘or Sales Tax authorities. 2) If the amount cannot be recovered from such person in the ‘manner provided ia sub-section (1), the appropriate officer may serve upon the defautter a notice in the prescribed form requiring him to pay the amount specified in the notice within such time as may be 50 specified (G3) Ifthe amount referred to in the nouize under sub-section (2) is, not paid within the time specified therein or within the farther time, if any, allowed by the appropriate officer, the appropriate officer mayee 120 THE GAZETTE OF PAKISTAN, EXTRA, JULY 2,1989 [Pare proceed to recover from the defaulter the said amount by one or more the following modes, namely :— (a) attachement and sale of any movable or immovable property of the defauiter; and (b) appointment of a receiver for the management of the movable or immovable property of the defaulter. _ (4) For the purposes of recovery of duty, or other [évy under sub- section 3}, the appropriate officer shall have the same powers which, under the Code of Civil Procedure, 1908 (V of 1908). eiil court has for (he purpose of the recovery of an amount due under a decree. (5) The Central Board of Revenue may make rules regulating the procedure for recovery of duty, tax or other levy urider this section and any other matter connected with or incidental to the operation of this, section.” (8) theamendments set putin part Lof the Third Schedule shall be made in the First Schedule to the Customs Act, 1969 (IV of 1969); (8) the amendments set out in Part If of the Third Schedale shall be made in the Second Schedule to the Customs Act, 1969 (TY of 1963); and (10) the amendments set out in Part III of the Third Schedule shall be made in the Thitd Schedule to the Customs Act, 1969 (IV of 1959) 6. Amendment of Ordinance XXX1 of 1979 (1) The following amendments shall be made in the Income Tax Ordinance, 1979, namely’ (2) in section 14, sub-section (1A) shall be omitted ; (0) in scotion 47, for sub-section (4) the following shall be substituted, namely — (4) Nothing contained in sub-section (3] orsub-section (3A) shall apply in respect of any donation made to the Quuid-e-Azam Memorial Fund.”; (©) in scetion 50, (in sub-section 2A}, {a} after the word “interest”, twive occurring, the words “or profit” shall be inserted; and (©) inthe second proviso, for the words, comma and figure “after the thirtieth day of June, 1985” the words, comma and figure “before the first day of July, 1989” shall be substituted; FParc t] Al TUE GAZETTE OF PAKISTAN, LY 1, 1989 32 after sub-section (4), the following new sub-section shall be @ «i iy tiv) ) serted, namely — (4A) Any person responsible for making any paymentin full orin part (including # payment by way of an advance) to any person, on account of brokerage or commission on behalf of Government, a local authority, a company, a foreign contractor or consortium shall, where ssach. payment, in any financial year, exceeds fifty thousand rapees, deduct advance (ax, at the time of making such payment, at the rate specified in the First Schedule and credit for the tax so deducted in any financial year shall, Subject to the provisions of section 53, be given in computing the tax payable by the recipient for the assessment year commencing on the first day of July next following the said financial year, or in the case of an assessee to whom section 72 or section 81 applies, the assessment year, ifany. in which the "said date" as referred to thersin, falls, whichever is the later.”: in sub-section (6), in the second proviso, for the word “twenty” the word “ten” shail be substituted; afict subsection (6), the following new subss namely — tion shall be inserted, (6A) ‘The principal officer of any company listed on a stock exchange in Pakistan, the national Tavestment (Unit) Trust and the Investment Corporation of Pekisian, shall, at tae time of making payment to a shareholder, not being a company, on account of dividends, deduct advance tax at the rate specified in the First Schedule if the amount of such dividends exceeds fifteen thousand rupees io any financial year,” after sub-section (JA. the following new sub-section shall be inserted, namely:— (7B) Any person responsible formaking any paymeatia full orn part (including a payment by way of an advance) to any person, on uecount of the rent of house property (inelading rent of furniture and fixtures, if any) on behalf of Government. a local authority, a company or the diplomatic mission of a forcign state shall, where the annual rent of'such property exceeds one hundred thousand rupees, deduct advance ta, at the time of making such payment, peyment, at Lhe rece specified in the First Schedale, and eredit for the tax so deducted in any financial sear shall, subject to the provisions of section 53, be given in computing the tax payable by the recipient For the assessment year commencing on the first dav of Juiy next following the said financial year, or in the case of an assesses to whom section 72 or section 81 applies, the asseas-ment year. if any, in which the “said date”. as referred to therein, Falls, ‘whichever is the later”; in section 55, in sub-section (2),—12 ‘THE GAZETTE OF PAKISTAN, EXTRA. JULY 1, 1989 Weare 4) for clause (a) the following skall be substituted, namely — (a) in the case of a company or a registered firm, in respect of the income year ending at any time between the first day of July and the thir'y-first day of December, both days inclusive, on or before the thirty-first day of July next following the income year: (aaj in the case of a company, in respect of the income year ending at any time betoveen the first day of January and the thirtieth day of June, both days inclusive, on or before the thirty-insi day of December next following the income year;”; @ in clause (b), for the words “first day of October”, twice occurring, the Words “thirtieth day of September” sial) be substituted; and Git) in clause (0), Por the words “first day of Octobes”, the words “thisty= first day of August” shall be substituted; (@)_ in section 167, in sub-section (1), for the figure “1991” the figure "1988" shall be substituted; (©) in section 138, in sub-section (5), (i) in-clause (b), for the word “Commissioner” the words “Central Board of Revenue” shall be substituted: and (i) inclause (¢), for the words “ Regional Commissioner” the words “Central Board of Revenue” shall be substituted; (g)_ in the First Schedule, in Part 1— (i) in paragraph A— (@)_ in sub-paragraph (1), after the words “total income”, the commas, words ard brackets", excluding divicend income frm a company listed on a stock exchange in Pakistan, the National Investment (Unit) Trust or the Investment ‘Conporation of Pakistan.” shall be inserted; and (®)_ in sub-paragraph (2), after the words “total income’, the commas, words and brackets “excluding dividend income from a company listed on a stock exchange n Pakistan, the ‘National Tavestment (Unit) Trust or the Investment Corporation of Pakistan.” shall be inserted; (ii) after paragraph C, the following new peragraph shall be inseried, namely— “CC. In the case of cvery individual, unregistered Seven and ficm, an association of persons, Hindu one hall undivided family and every artificial juridical, per ceed person referred to in clause (32) of section 2, of suchPart THE GAZETTE OF PAKISTAN, EXTRA, JULY 1, 1989 123 not being @ case to which paragraph B of this amount”; part applies, on the dividend income from a company listed on a stock exchange in Pakistan, the National Investment (Unit) Trust of the Investment Corporation of Pakistan. (ii) for paragraph DD the following stall be substituted, namely — “DD. Rate of income tax for purposes of deduction under sub- section (2A) af section S0— G@ where the sum does not excerd Nil Rs, 100,000 in any financial year. (b) where the sum exceeds Rs. 100,000 in Five per any financial year cent of such. amount.” Gv} after paragreph B, the following new paragraph shall be inserted, namely:— “EE, Rate for collection of income tax under sub- Ten per section (4A) of section 50. cent of the amount of, payment." (¥} for paragraph G the following shall be substituted, namely — “G._ Rates for collection of ineome tax under sub-section (6) of section 50.— (0) pods transport vehicles with registered laden weight of (a) less than 2020 kilograms. “Three hundred rupees per annum, (b) 2030 kilograms or more, One Thousand two . handred rupees per annum, (2) passenger transport vehicles ‘with registered seating capactty of (a) ten or more persons but ‘Twenty rupees per Jess than twenty persons, seat per annum, (b). twenty persons or more. Twenty five rupees per seat per gnnum.":es THE GAZETTE OF PARISTAN, EXTRA. JULY 1, 1989 trace (Gi) after paragraph G, the following new paragraph shail be inserted, ramely:— under eub-section (6A) of section 5. per cent or suc amount."; and (vil) after paragraph H, the following new paragraph shall be inserted, ramely:— “HH, Rate for collection of income tax Five per cent of ander sub-section (7B) of section 50. such amount.: (tin the Second Schedule— () in Patt — {a} imelause (80), in sub-clause (a), (€0), (4), (€) and (0, for the words “The whole of such income” wherever occurring the words “Fifteen thousand rapecs” shall be substituted; (b)_ in clause (93), a (ii) Gi) ww) Oo) for the word “property” the words “house property” shall be substituted ; the words “or business" shall be omitted; the first proviso shall be omitted; for the second proviso the following shall be sutsti- tuted, namely: — “Provided that nothing in this clause shall apply to so much of the income as is not expended within Pakistan”; and for the Explanation the following shall be substituted and shall be deemed always to have been so substituted, namely:— Explanation. —Nowwithstanding enything con- tained in the Mussalman Wakf Validating Act, 1913, (VL of 1913), or any other law for the time being in force or in the instrument relating to the trust or the institution, if any amount is set apart, expended or disbursed for the maintenance and support wholly of partially of the family, children or descendents of the author of the trast or the donor or the maker of the institution or for his own maintenance and support during his life time or payment ta himself or his family,4s THE GAZETTE OF PAKIST: 15 children, relations or descendents ot for the payment of his or taeir debss out of the income from house property dedicated, or if any expenditure is made other than for charitable purposes, in each case such expenditure, provision, setting apart, payment or disbursement shall 20t be deemed, for the purposes of thiselause, tobe for religious oreharitable purposes.”; (© in clause (1184) — () for the figure “1991” the figure "1993" shall be substituted; and (ii) after sub-clause (2), the following new sub-clause shall bbe inserted, namely — “(a2)_ setup in the divisions of Dera Ghaari Khan and Bahawalpur in the province of the Punjab and the divisions of Sukkur and Larkana in the province of Sind.” (@)_ in clause (118B), (i) for the figure “1991” the figure ‘1993 shall_be substituted ; Gi)’ Tor sub-clause (@) the following shall be sub: ‘namely — ed, (a) engaged in the manufacture of bio- technology goods, fibre optics, computers and sol ‘ware, electronic equipment, solar energy equipment and fertilizers"; and (ii) the Explanation shail be omitted ; and fe} inclause (131), after the word “Karachi” the words, comma and figure “before the first.day of July, 1989" shall be inserted and Gi) in Part TV. in clause (2), for the word “three” the word “two” shall be substituied > (@ in the Third Schedule, in nile 5, in sub-rule (1),— (a) in clause (c), after the figure and comma “1981,”, the words, commas and figure “and before the first day of July, 1988,” shall be inserted; (b} in clause (ec), after the words “written down value”, the words, commas aid figure “and in respect of any assessment year46 126 THE GAZETTE OF PAKISTAN, EXTRA. JULY 1, 1969 rare commencing on or after the fist day of July, 1989, twenty five per cent of the writien down value” shall he inserted: and (c} inelause tece), afier the words “written down value”. the words commas and figure “and in respect of any assessment year corrmencing em or after the first diy of huly, 1989, twenty five per scat of the yriven down value” shall te inserted ; and (2) The provisions of. (a) sub-clause |i) of use (g) of sub-section (|) shall, for the purposes of assessment of imeomiein respeet of the assessment Year commencir'g on or after the first day of July, 1989, take elfect on the first day of July, 1989 (hb) subsclause (i, Gv). (9). (vi) and (vit) of clause (g) of sub-section (I) shall, for the purposes of deduction of advance ax, titke effect on the first day of July, 1989; and (e}_ sub-clause (a). (>) and (c) of clause (1) of sub-section (1) shall, for the purposes off assessment of income in respect of the assessment year commencing on oa after the First day of Fuly, 1989, taleeifeet on the hist day of July, 1989. 7. Lavy of tax on Capital Value of certain assets—{1) A tax on the capital value of asse's, to be ealled the capital value tax, shall be payable by every individual who acquires by purchase an asset or aright to the use thereo! for more than twenty years such a Specified im sub-section (2). atthe rate of five per cent of the capital valk 0 purehmse of an ary ticket 2) The assets referred to in subssection (1) ate— (a) urban movable propepty with land area exceeding 250 square fares ‘ and 9 A) ©) mpfr vice He for hire. with éngine capacity exeyedine 800 edbic centimeters {@) For the purpovesof sub-section (1). the capital value of the asset shall be— {al in the cuse AP immovable property: the vslue as determined) for the wallue dacjéred by the transferes€ and (6) in the case of a motor vehicle not plying for hire, which is— (imported the landed cost as determined by the Customs authorities; Gi) purchased from a manuftcturer the price paid by the purchasers : in Pakistan p> oniflect ty frnonec Ache 199977. Levy of tax on Capital Value of certain assets---(1) A» tax on the capital value of assets, to be called the capital value tax, shall be payable by every individual essociation of persons, fim or a company which acquires by purchase an asset or a right to the use thereof for more than ‘bwenty years, or renewal of the lease or any premium paid thereon ot purchase gifi, exchange, power af attorney other than revocable and time bound (not exceeding ” sbi) :akap) BO CLLRE ess seoninal Seallik aid sti. dF. Meatahhar ereindl patents and grand children, brother and sister surrender or relinquishment of tights by the owner (whether effected orally or by deed are obtained through ‘Court decree) except by inheritance, or gift from spouse, parents, grand parents, 2 brother and a sister or purchase of modaraba: certificate or a registered instruments of redeemable capital as defined in the Companies ordinance, 1984 (XLVI of 1984), or shares of a public company, listed on a registered stock exchange in Pakistan by a resident person defined in section 8! of the Income Tax Ordinance, 2001 (XLIY of 2001) such as is specified in sub section (2), xt the rates specified in that sub-sectign: Provided that in case of a bank, the capital value tax shall be paid when general power of attomey is used to sell the mortgaged property offered as collateral other thaet traded secutity for obtaining loan. “Explanation. For the purpose of this section, the expressions (a) “association of persons” and “firm” shall have the same meaning as contained inthe Income Tax Ordinance, 2001 (XLIX of 2001); and (b) “company” shall have the same meaning as defined in the Income Tax Ordinance, 2001 (XLIX of 2001)"; and@ @ imenicipal bodies or canionment boards; and (vii) includes areas defined as such in the Urban Immovable Property Tax Aci, 1958 (WP Act V of 1958) and such areas «as the Central Board of Reverue may, for time t0 time, by nolification in the official Gazette, specify. The assets and the rates referred to in sub-section (1) ares Description of asset Rate of CVT percentage ofthe capital value purchase of modoraba certificates or any instrument af 0.02% of he purchase redeemable capital as defined inthe Companies value Ordinance, 1984 (XLVI of 1984) 0° shares ofa public company listad om registered stock exchange mn Pakistan ) Forthe purposes of siub-section (1), the capital value of the asset shall bee [b) im the case ofa motor vehicle not plying for hire, which is. (a) () Imported {lee landed cost as determined by the Customs authorities; Purchased form amenufacturer the price paid by the In Pakistan purchaser; Gi) Others as declared by the transferee. ‘The capital value tax shell be collected by the person responsible for registering or attesting the transfer of the asset in respect of which the tax is payable, at the time of registering or attesting the transfer;