The Central Board of Revenue (CBR) has directed all collectors of sales tax and central excise not to charge central excise duty (CED) on the 'Agarbatti' and other odiferous preparations.
In a clarification issued to the M/s Metro Agarbatti, Karachi, the CBR has given reasons for exempting 'Agarbatti' and other odiferous preparations from CED through legal interpretation of excise laws.
The CBR observed that amendment of SRO.497(I)/2002 of August 2002 has only substituted the main heading 33.07 of SRO.333(I)/2002, but the sub-heading 3307.4100 was not substituted.
'Agarbatti' and other odiferous preparations, which are used by burning are classifiable under Pakistan Customs Tariff (PCT) heading 3307.4100 and are, therefore, exempt from excise duty in terms of SRO.333(I)/2002 read with SRO.497(I)/2002 of August 8, 2002.
The CBR has issued the clarification on the request of leading manufacturers of 'Agarbatti'.
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