Levy, Collection and Payment of Duty Chapter- 02
Provided that no penalty under this Act or rules made there under shall be imposed unless a show
cause notice is given to such person.- Assessment giving effect to an order (U/S 14B)
Except where subsection (2) applies, where, in consequence of, or to give effect to, any finding or
direction in any order made under Chapter-V by the Commissioner (Appeals), Appellate Tribunal,
High Court, or Supreme Court, the Commissioner or an officer of Inland Revenue empowered in this
behalf, shall issue the order within one year from the end of the financial year in which the order of
the Commissioner (Appeals), Appellate Tribunal, High Court or Supreme Court, as the case may be,
was served on the Commissioner or Officer of Inland Revenue.
Where, by an order made under Chapter V by the Appellate Tribunal, High Court, or Supreme Court,
an order of assessment is remanded wholly or partly, and the Commissioner or Commissioner
(Appeals) or the Officer of Inland Revenue, as the case may be, is directed to pass a new order of
assessment, the Commissioner or Commissioner (Appeals) or Officer of Inland Revenue, as the case
may be, shall pass the new order within one year from the end of the financial year in which the
Commissioner or Commissioner (Appeals) or Officer of Inland Revenue, as the case may be, is
served with the order: Provided that limitation under this sub-section shall not apply if an appeal or
reference has been preferred against the order passed by Appellate Tribunal or a High Court.- Power of tax authorities to modify orders, etc [u/s 14C]
Where a question of law has been decided by a High Court or the Appellate Tribunal in the case of a
registered person, on or after first day of July 2005, the Commissioner or an officer of Inland Revenue
may, notwithstanding that he has preferred an appeal against the decision of the High Court or made
an application for reference against the order of the Appellate Tribunal, as the case may be, follow
the said decision in the case of the said taxpayer in so far as it applies to said question of law arising
in any assessment pending before the Commissioner or an officer of Inland Revenue, until the
decision of the High Court or of the Appellate Tribunal is reversed or modified.
In case the decision of High Court or the Appellate Tribunal, referred above, is reversed or modified,
the Commissioner or an officer of Inland Revenue may, notwithstanding the expiry of period of
limitation prescribed for making any assessment or order, within a period of one year from the date of
receipt of decision, modify the assessment or order in which the said decision was applied so that it
conforms to the final decision.- Application of the Customs Act, 1969 to Federal excise duties (U/S 15)
The FG may, by notification in the official Gazette, declare that any or all of the provisions of the
Customs Act, 1969, shall, with such modifications and alterations it may specify, consider necessary
or desirable to adapt them to the circumstances, be applicable in regard to like matters in respect of
the duties levied by section 3 and 8.- Exemptions (U/S 16)
(1) All goods imported, produced or manufactured in Pakistan and services provided or rendered
except such goods and services as are specified in the First Schedule shall be exempt from
whole of excise duties levied under section 3:
Provided that goods and services specified in the Third Schedule shall be exempt from duty
subject to such conditions and restrictions, if any, specified therein and no adjustment in terms
of section 6 shall be admissible in respect of goods exempt from duty of excise whether
conditionally or otherwise.
(2) The Federal Government may, whenever circumstances exist to take immediate action for the
purposes of national security, natural disaster, national food security in emergency situations
and implementation of bilateral and multilateral agreements, by notification in the official
Gazette, exempt subject to such conditions as may be specified therein, any goods or class of
goods or any services or class of services from the whole or any part of the duty leviable under
this Act;
(3) Notwithstanding the provisions as above, the FG or the Board may, by a notification in the
official Gazette, for reasons to be recorded, exempt any person or class of persons from