Section 2: Definitions

2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,— (1) “adjudicating authority” means any authority competent to pass any order or decision under this Act or the rules made there under, but does not include the Board or Appellate Tribunal; (2) “adjustment” means deduction of amount of duty paid on goods used in the manufacture or production of other goods from the amount of duty payable on such other goods in the prescribed manner; 1[(3) “Appellate Tribunal” means the Appellate Tribunal Inland Revenue established under section 130 of the Income Tax Ordinance, 2001 (XLIX of 2001);] 2[(4) “Board” shall have the same meaning as defined under clause (8) of section 2 of the Income Tax Ordinance, 2001 (XLIX of 2001).”; 1[(4A) “Chief Commissioner” means a person appointed as the Chief Commissioner Inland Revenue under section 29;] 2[(5) “Commissioner” means a person appointed as a Commissioner Inland Revenue under section 29;] (6) “conveyance” means any means of transport used for carrying goods or passengers such as vessel, aircraft, vehicle or animal etc.; (7) “default surcharge” means surcharge levied under section 8; (8) “distributor” means a person appointed by a manufacturer in or for a specified area to purchase goods from him for sale to a wholesale dealer in that area; 3[(8a) “due date”, in relation to furnishing a return under section 4, means the 15th day of the month following the end of the month, or such other date as the 4[Board] may, by notification in the official Gazette, specify 5[and different dates may be specified for furnishing of different parts or annexures of the return]. 6[(8b) “dutiable goods” means all excisable goods specified in the First Schedule except those which are exempt under section 16 of the Act; (8c) “dutiable supply” means a supply of dutiable goods made by a manufacturer other than a supply of goods which is exempt under section 16 of the Act; (8d) “dutiable services” means all excisable services specified in the First Schedule except those which are exempt under section 16 of the Act; (9) “duty” means any sum payable under the provisions of this Act or the rules made there under and includes the default surcharge and the duty chargeable at the rate of zero percent 1[excluding fee and service charges imposed and collected under section 49;] 2(9a) “duty due” means duty in respect of supplies made or services provided or rendered during a month and shall be paid at the time of filing of return; (10) “establishment” includes an undertaking, firm or company, whether incorporated or not, an association of persons and an individual; (11) “factory” means any premises, including the precincts thereof, wherein or in any part of which goods are manufactured, or wherein or in any part of which any manufacturing process connected with the production of the goods is being carried on or is ordinarily carried on; 3[4[(12)] “Officer of Inland Revenue” means any person appointed by the Board as officer of Inland Revenue under section 29 or any person (including an officer of the Provincial Government) entrusted by the Board with any of the powers of an officer of Inland Revenue under this Act or rules made there under;] 1(12a) “franchise” means an authority given by a franchiser under which the franchisee is contractually or otherwise granted any right to produce, manufacture, sell or trade in or do any other business activity in respect of goods or to provide service or to undertake any process identified with franchiser against a fee or consideration including royalty or technical fee, whether or not a trade mark, service mark ,trade name, logo, brand name or any such representation or symbol, as the case may be, is involved;” (13) “goods” means goods leviable to excise duty under this Act or as specified in the First Schedule and includes goods manufactured or produced in non-tariff area and brought for use or consumption to tariff area; (14) “goods insurance” includes fire, marine, theft, accident and other such miscellaneous insurance; (15) “import” and “export” mean respectively bringing into, and taking out of Pakistan by sea, land or air and shall be deemed to have always been so defined; 2(15a) “KIBOR” means Karachi Inter Bank Offered Rate prevalent on first day of each quarter of the financial year;” (16) “manufacture” includes,— (a) any process incidental or ancillary to the completion of a manufactured product; (b) any process of re-manufacture, remaking, reconditioning or repair and the processes of packing or repacking such product, and, in relation to tobacco, includes the preparation of cigarettes, cigars, cheroots, biris, cigarette and pipe or hookah tobacco, chewing tobacco or 3[snuff, or preparation of unmanufactured tobacco by drying, cutting and thrashing of raw tobacco,] and the word "manufacturer" shall be construed accordingly and shall include,– (i) any person who employs hired labour in the production or manufacture of goods; or (ii) any person who engages in the production or manufacture of goods on his own account if such goods are intended for sale; and (c) any person who, whether or not he carries out any process of manufacture himself or through his employees or any other person, gets any process of manufacture carried out on his behalf by any person who is not in his employment: Provided that any person so dealing in goods shall be deemed to have manufactured for all purposes of this Act, such goods in which he deals in any capacity whatever; [(16a) “non-fund banking services” includes all non-interest based services provided or rendered by the banking companies or non-banking financial institutions against a consideration in the form of a fee or commission or charges;”;] (17) “non-tariff area” means Azad Jammu and Kashmir, Northern Areas and such other territories or areas to which this Act does not apply; (18) “person” includes a company, an association, a body of individuals, whether incorporated or not, a public or local authority, a Provincial Government or the Federal Government; (19) “prescribed” means prescribed under this Act or by rules made there under; 1[(19a) “property developers or promoters” means persons engaged in development of purchased or leased land for conversion into residential or commercial plots or construction of residential or commercial units for sale;] (20) “registered person” means a person who is registered or is required to be registered under this Act provided that a person who is not registered but is required to be registered shall not be entitled to any benefit or privilege under this Act or rules made there under, unless he is registered and such benefit and privilege, unless allowed by Board, shall be confined to period of registration; (21) “sale” and “purchase” with their grammatical variations and cognate expressions, mean any transfer of the possession of goods or rendering and providing of services by one person to another in the ordinary course of trade or business for cash or deferred payment or other consideration; 1[(21a) “sales tax mode” means the manner of collection and payment under the Sales Tax Act, 1990, and rules made there under, of the duties of excise chargeable under this Act specified to be collected and paid as if such duties were tax chargeable under section 3 of the said Act and all the provisions of that Act and rules, notifications, orders and instructions made or issued there under shall, mutatis mutandis, apply to the excise duty so chargeable;] (22) “Schedule” means the schedule appended to this Act; (23) “services” means services, facilities and utilities leviable to excise duty under this Act or as specified in the First Schedule read with Chapter 98 of the Pakistan Customs Tariff, including the services, facilities and utilities originating from Pakistan or its tariff area or terminating in Pakistan or its tariff area; 2[(23a) “supply” includes sale, lease or other disposition of goods and shall include such transaction as the 1[Board, with the approval of the Federal Minister-in-charge,] may notify in the official Gazette from time to time;] (24) “tariff area” means area other than the non-tariff area; 2[(24A) “un-manufactured tobacco” means tobacco useable for manufacture of cigarettes as manufactured by Green Leaf Threshing Units after processing and conversion of tobacco green leaf;] 3[(24B) “whistleblower” means whistleblower as defined in section 42D of the Federal Excise Act, 1990;] (25) “wholesale dealer” means a person who buys or sells goods wholesale for the purpose of trade or manufacture, and includes a broker or commission agent who, in addition to making contracts for the sale or purchase of goods for others, stocks such goods belonging to others as an agent for the purpose of sale; and (26) “zero-rated” means duty of Federal excise levied and charged at the rate of zero per cent under section 5 of this act.

Effective date: 2005-07-01

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