LAHORE: The Federal Board of Revenue (FBR) has withdrawn notices of excise duty and sales tax against Pakistan Wapda Foundation for reprocessing waste transformer oil into usable oil without obtaining a central excise license and sales tax registration, said sources.
They said the relevant tax authority has withdrawn show cause notice after proving that the Foundation was not a manufacturer of transformer oil neither under the excise nor the sales tax law, as it was perceived initially.
According to details, Deputy Director Sales Tax had issued a notice, asserting that the Foundation was reprocessing waste transformer oil into usable transformer oil in the Transformer Reclamation Plant installed at its premises at Shalimar Town, Lahore.
The notice had contended that the activity was being carried out without obtaining a central excise license and sales tax registration. It was pointed out in the notice that the Foundation was not paying central excise duty as well as sales tax, which is tantamount to the violation of both the laws.
The department was stressing the point that the activity was falling within the charging provisions of both the Central Excise Act and the Sales Tax Act, as the activity fall within the definition of manufacture and production and its supply is covered under the sales tax provisions.
Copyright Business Recorder, 2023