Supply of tractor parts exempted from SED

The Federal Board of Revenue has exempted the special excise duty (SED) levied under notification SRO.655(I)/2007 of June 20, 2007, on the tractor parts supplied by registered vendors to the manufacturers of agricultural tractors from July 1, 2007. It is learnt here on Saturday that the FBR has issued an SRO.675(I)/2011 pertaining to refund of the SED on tractors.
According to the notification, the FBR has exempted the special excise duty levied under Notification SRO.655 (I)/2007 dated the 29th June, 2007, on the tractor parts supplied by registered vendors to the manufacturers of agricultural tractors falling under Pakistan Customs Tariff (PCT) heading 8701 of the First Schedule to the Customs Act, 1969. Provided that exemption under this notification shall be available only by way of refund under this notification, the procedure for refund shall mutatis mutandis be the same as applicable to the payment of refund of sales tax at a particular or relevant point of time.
Provided that no refund shall be claimed by tractor manufacturers in respect of purchases on which Special Excise Duty was neither charged nor paid by the vendors due to any reason. However, no liability of Special Excise Duty shall be created against such vendors on this account and to the said extent. This (SRO.675 (I)/2011) shall take effect from July 1, 2007, notification added. Under previous S.R.O. 655(I)/2007 the government had charged special excise duty at the rate of one percent of the value of goods mentioned in the notification.