Section 3: Duties specified in the First Schedule to be levied

3. Duties specified in the First Schedule to be levied.—(1) Subject to the provisions of this Act and rules made there under, there shall be levied and collected in such manner as may be prescribed duties of excise on,— (a) goods produced or manufactured in Pakistan; (b) goods imported into Pakistan 1[, irrespective of their final destination in territories of Pakistan]; (c) such goods as the 2[Federal Government] may, by notification in the official Gazette, specify, as are produced or manufactured in the non-tariff areas and are brought to the tariff areas for sale or consumption therein; 3[***] 4[(d) services provided in Pakistan including the services originated outside but rendered in Pakistan; 5[and] 6[(e) any item not covered in clause (a) to (d) above and specified in the First Schedule.] at the rate of 7[fifteen] per cent ad valorem except the goods and services specified in the First Schedule, which shall be charged to Federal excise duty as, and at the rates, set-forth therein. (2) Duty in respect of goods imported into Pakistan shall be levied and collected in the same manner and at the same time as if it were a duty of customs payable under the Customs Act, 1969 (IV of 1969), and the provisions of the said Act including section 31A thereof shall apply. (3) The Board may, by notification in the official Gazette, in lieu of levying and collecting under sub-section (1) duties of excise on goods and services, as the case may be, levy and collect duties,— (a) on the production capacity of plants, machinery, undertakings, establishments or installations producing or manufacturing such goods; or (b) on fixed basis, as it may deem fit, on any goods or class of goods or on any services or class of services, payable by any establishment or undertaking producing or manufacturing such goods or providing or rendering such services. 1[(3A) Subject to the provision of sub-section (3) of section 6 or any notification issued there under, where excisable goods and services are supplied to a person who has not obtained registration number, the Federal Government may, by notification in the official Gazette, charge, levy and collect, on the excisable goods and services specified in that notification, a further duty at the rate of two percent of the value in addition to the rate specified in sub-sections (1), (3), (4) and (5) of this section.] (4) Without prejudice to other provisions of this Act, the 2[Federal Government] may levy and collect duty on any class or classes of goods or services by notification in the official Gazette at such higher or lower rate or rates as may be specified in such notification. 3[(5) The liability to pay duty shall be— (a) in case of goods produced or manufactured in Pakistan, of the person manufacturing or producing such goods; (b) in case of goods imported into Pakistan, of the person importing such goods; (c) in case of services provided or rendered in Pakistan, of the person providing or rendering such service 1[, provided where services are rendered by the person out of Pakistan, the recipient of such service in Pakistan shall be liable to pay duty; 2[omitted] (d) in case of goods produced or manufactured in non-tariff areas and brought to tariff areas for sale or consumption therein, of the person bringing or causing to bring such goods to tariff areas 3[; and (e) in any other case, of the person including any middle man as may be specified under the provisions of this Act.] 4[(5A) In respect of goods, specified in the Fourth Schedule, the minimum production for a month shall be determined on the basis of a single or more inputs as consumed in the production process as per criterion specified in the Fourth Schedule and if minimum production so determined exceeds the actual supplies for the month, such minimum production shall be treated as quantity supplied during the month and the liability to pay duty shall be discharged accordingly.] Explanation.– Subject to sub-section (1), for the purpose of this section, “goods” means the goods specified in CHAPTERS 1 TO 97 and “services” means the services specified in CHAPTER 98 of the First Schedule to the Customs Act, 1969 (IV of 1969).

Effective date: 2005-07-01

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