Duty on POL purchased by embassies: FBR bars MCCs from processing refund claims

The Federal Board of Revenue has barred the Collectors of Customs, Model Customs Collectorates (MCCs) from processing the refund claims of Federal Excise Duty and Development Surcharge on petrol/diesel purchased by diplomatic missions/embassies as the same would now be processed by the relevant Large Taxpayer Units and Regional Tax Offices (RTOs).
In this connection, the FBR has issued instructions to all Chief Commissioners of the Large Taxpayer Units and Regional Tax Offices (RTOs) here on Monday. Sources told Business Recorder here on Monday that some of the past refund claims of the diplomatic missions/ embassies were pending with the collectorates of customs.
Through an old instruction, the Board had allowed the collectorates of customs to process the refunds claims of Federal Excise Duty and Development Surcharge on petrol/diesel purchased by diplomatic missions/embassies. Following creation of the Inland Revenue Service, now the refund claims of Federal Excise Duty and Development Surcharge on Petrol/ Diesel purchased by diplomatic missions/embassies operating in Pakistan would be processed and sanctioned by the concerned LTU/RTO.
The relevant LTU/RTO would process such claims where the concerned diplomatic mission has been registered depending on the territorial jurisdiction of the LTU/RTO. Thus, the FBR has directed the Collectors of Customs to immediately transfer the refund claims of diplomatic missions to the concerned LTU/RTO under whose jurisdiction the diplomatic mission falls, sources added.
According to the FBR directive, the FBR has examined the issue raised by Collector Model Customs Collectorate Appraisement Customs House Karachi regarding simplification of procedure for grant excise duty refund on petrol used by diplomatic missions and diplomatic officers.
The FBR said that the refunds of Federal Excise Duty and Development Surcharge on Petrol/Diesel purchased by diplomatic missions and diplomatic officials are to be processed by the concerned RTO/LTU as per Sales Tax Act, 1990, and Federal Excise Act, 2005 and rules made thereunder, respectively. All pending refund claims may be transferred to the concerned RTO/LTU in whose jurisdiction the diplomatic mission falls under intimation to the diplomatic mission concerned, the FBR instructions added.