Central excise duty withdrawn from sulphonic acid import

ISLAMABAD (February 05 2003) : Giving a major relief to the soap/detergent industry, the Central Board of Revenue (CBR) has abolished central excise duty (CED) from the import of basic raw material sulphonic acid used in soap and detergents.

Sulphonic acid, sulphonates and other active detergent concentrates were extensively used as major ingredient for production of soap/detergents.

The CED has been withdrawn by doing away with the condition of 'bank bond' submission equivalent to the amount of excise duty previously paid at a later stage.

In this regard, particular provision of Chapter X of the Central Excise Rules, 1944 was not required to be followed by the importer of the above-mentioned basic raw material.

Now, the importers of sulphonic acid would not pay any duty or deposit guarantee.

The manufactures would only deposit excise duty at the time of selling of the product.

The CBR has amended SRO. 333(I)/2002 through SRO (I)/2003 issued for the soap/detergent industry.

Under the previous practice, the importers were paying excise duty on the import of soap and submitting bank guarantee against the sulphonic acid import.

The units contested that why they should pay dual duty on the soap as well as on its ingredients.

The CBR has allowed the duty-free import of sulphonic acid by removing 'bank bond' condition from the Central Excise Act, 1944.

The notification issued on Tuesday reads as: In exercise of the powers conferred by sub-section (1) of section 12A of the Central Excise Act, 1944 (I of 1944), read with sub-section (2) of section 4 thereof, the Federal Government is pleased to direct that the following further amendment shall be made in its notification No SRO 333(I)/2002, dated the 15th June 2002, namely:

In the aforesaid notification, in the Table-I, in column (1), against heading “respective headings of Chapter 34, entry (I) in column (2) and corresponding entries relating thereto in column (3) and (4) shall be omitted.

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