Independent Case Scruitny Committees for Federal Excise

Government of Pakistan Revenue Division Federal Board of Revenue Islamabad, the 27th July, 2026. NOl'I1'ICATION S.R.O. 1168 (l)12026.- In exercise of the powers conferred by sub-section (4) of section 34AA read with section 40 and 43 ofthe Federal Excise Act, 2005, the Federai Board ofRevenue is pleased to direct that the following funher amendments shall be made in the Federal Excise Rules, 2005, namely: ln the aforesaid rules, after rule 92, the lollowing new Chapter XVII shall be inserted namely: - Chapter XVII Independent Case Scrutiny Committees for Federal Excise 93. Independent Case Scrutiny Committees.- (1) These rules shall provide for constitution of independent case scrutiny committees. In this rule, unless there is an)'thing repugnant in the subject or context,- (a) Chairman" means the Chairman of the Independent Case Scrutiny Committee; (b) Commissioner" means as define under clause (5) ofsection 2 ofthe Federal Excise Act,2005. (c) "Committee" means any of the lndependent Case Scrutiny Committees constituted under these rules for specified tenitorial jurisdiction; (d) "petition" means a petition to the Supreme Court under Articlel85(3) of the Constitution of the Islamic Republic of Pakistan or Federal Constitutional Court, arising from any ofthe tax law; (e) "reference" means a reference filed under section 34A ofthe Act; (l) "Secretary" means an officer of Inland Revenue nominated by the Board for the purposes of the Committee; (g) "serving member of the Committee" means an in service officer of BS 20 or above of lnland Revenue service; and (h) "tax laws" means the Income Tax Ordinance,200l (XLIX of 2001), the Customs Act, 1969 (IV of 1969), the Sales Tax Act, 1990, and the Federal Excise Act,2005 and includes any rules, regulations, or notifications issued thereunder. 3. The Board by an order shall constitute the following committees with powers, functions and jurisdiction, namely:- )

Committee No. 1 S. No. Member 1( ) (2) .,() 1( ) 1 A retired Judge of the Supreme Court, Federal Constitutional Court or any of the High Courts of Pakistan Chairman (i) To timely examine each case and make recommendation to file or otherwise a reference before the High Coud, a petition before the Supreme Court or Federal Constitutional Court; (ii) To review pending references and petitions periodically to determine whether continuation of litigation is warranted in the interest of revenue; (iii)To maintain a database of settled legal questions and relevant precedents to guide future litigation decisions and ensure consistency; and (iv)To identily systemic issues requiring legislative or administrative intervention and recommend appropriate measures to the Board. Jurisdiction: References to be filed before Islamabad High Courl and CPLAs belore the Supreme Court and Federal Constitutional Court by LTO Islamabad, CTO Islamabad, RTO Islamabad. RTO Peshawar, RTO Abbottabad DG I&I Islamabad and its Directorates. 2 An Advocate having not less than fifteen years' experience in tax and commercial litigation before the High Courts and / or the Supreme Courl of Pakistan Member J ffi senior serving cer of the IRS ve or retired of BS 20 or Member Functions & Jurisdiction I I Status

(2) A retired Judge of the Supreme Court. Federal Constitutional Coun or anr ol the High Courts of Pakistan An Ad ocale having not less than fifteen years' experience in tax and commercial litigation before the High Couns and / or the Supreme Court of Pakistan ('hairman Committee No. 2 Status Functions & Jurisdiction S. No. Member 3( ) I()I( ) (i) To timell' examine each case and make recommendation to file or otherwise a reference before the High Court. a petition before the Supreme Court or Federal Constitutional Court; (ii) To review pending references and petitions periodically to determine r.l'hether continuation of litigation is *,arranted in the interest of revenue; (iii)To maintain a database of settled legal questions and relevant precedents to guide future litigation decisions and ensure consistency; and iiv,;'l-o identify sl stemic issues requiring legislative or administrative intervention and recommend appropriate measures to the Board. Jurisdiction: References to be filed belore Lahore High Court and CPLAs before the Supreme Court and Federal Constitutional Court by LTO Lahore. LTO Multan, CTO Lahore. RTO Lahore, RTO Rawalpindi, RTO Gujranwal4 RTO Faisalabad, RTO Multan, RTO Bahawalpur, RTO Sialkot, RTO Sargodha and RTO Sahiwal. J f}] or retired of BS 20 or senlor servrng cer of the IRS ve Member I I ,l ] '"**'

S. No. Member Status Functions & .Iurisdiction (l) (2) 3( ) .l() I A retired Judge of the Supreme Court, Federal Constitutional Court or any of the High Courts of Pakistan Chairman (i) To timely examine each case and make recommendation to file or otherwise a reference before the High Court, a petition before the Supreme Court or Federal Constitutional Courtl (ii) To review pending references and petitions periodically to determine uhether continuation ol litigation is warranted in the interest ofrevenue: (iii)To maintain a database of settled legal questions and relevant precedents to guide future litigation decisions and ensure consistency; and (iv)To identi$, systemic issues requiring legislative or administrative intervention and recommend appropriate measures to the Board. Jurisdiction: References to be filed before Sindh High Court. Balochistan High Court and CPLAs before the Supreme Court and Federal Constitutional Court by LTO Karachi" CTO Karachi. RTO-I Karachi. RTOII Karachi, RTO Sukkur, RTO Hyderabad and RTO Quetta. 2 An Advocate having not less than fifteen years' experience in tax and commercial litigation before the High Courts and i or the Supreme Court of Pakistan Member -) senlor servrng cer of the IRS or retired of BS 20 orlrl Mcmbcr (a) convene meetings with the approval of the Chairman, circulate the agenda, maintain minutes and records olproceedingst (b) coordinate with the concemed field fbrmations and obtain records, comments, briefs or any other information required by the Committee; Committee No. 3 I I I I I (4) I'he Secretary as defined in clause (f) of sub-rule (2) of these rules shall provide secretariat and administrative support to the Committee and shall-

(5) The Committee may co-opt a Chartered Accountant as a non-voting member, where it is deemed necessary. The remuneration ofsuch non-voting member shall be determined by the Board. (6) The Board may, for the purpose of identifying suitable candidates, constitute a Search Committee, the composition, terms of reference and procedure whereof shall be determined by lhe Board. (7). Proceedings and records placed before the Committee shall be confidential. Any member having a conflict of interest in a matter shall recuse himself, and such recusal shall be recorded in the minutes. (8) The Secretary shall convene meetings, circulate agenda, maintain minutes and a case register or docket, and communicate recommendations of the Committee to the Commissioner concemed. (9) The Commissioner having jurisdictions for the purposes of this rule shall, within ten days ofreceipt ofthe order ofthe AfIR or the High Court, refer a case for pre-filing scrutiny, and the Secretary shall place such cases belbre the Committee accordingly. ( 10) The referral shall contain all material particulars including the manner ofreference, documents required, revenue implications involved, questions of law requiring interpretation, precedents and settled law basis ofthe case, the original decision, the appellate decision, where applicable, and the recommendations of the Commissioner concemed, where applicable, and all relevant documents shall be attached thereto. ( 11) The Board may for reasons to be recorded in writing transfer the jurisdiction of a case from one scrutiny committee to anothff Committee. (12) The Committee may call for any record, document, brief, or clarification from any offrce or field formation through the Secretary. (c) communicate the <lecisions, recommendations and directions of the Committee to the concerned Commissioners and field formations. and ensure necessary follow-up; (d) maintain the records, database and correspondence ofthe Committee; (e) keep the concemed Commissioners informed regarding the proceedings of cases before the Committee; and (0 perform such other functions as may be assigned by the Committee, the Chairman or the Board."

(13) The Committee shall convene on a daily basis. whether in person or online, and shall prioritize its workload so as to ensure that every recommendation is finalized within a period of fifteen days from the date of referral: ( l4) Where the Committee recommends non-pursuance of any case, the Secretary shall intimate the Commissioner concerned for compliance of such directions. (16) The decision shall be taken by majority vote and shall be recorded in writing; any dissenting opinion, ifrecorded by a Member, shall form part of the ofhcial record. (l 7) While making decision of filing of reference or petition, the commiuee shall keep in view the binding presidents set up by the Supreme Court of the Pakistan or Federal Constitution Court, revenue involved in the particular case or other similar cases and interpretation of law and lacts ofthe case (18) If the Committee may not render a decision within the prescribed timeline (including any extension granted), the case shall be deemed to have been cleared for filing, subject to compliance with al1 other applicable legal requirements and the Secretary shall record in writing that the prescribed period has been lapsed and intimate Commissioner concemed accordingly. (19) Where the period of limitation lor filing a reference or petition is expiring within fifteen days. or where there is imminent and substantial revenue loss requiring urgent intervention, the matter shall be placed before the Chairman as an emergency case. (20) The Chairman may, after prima facie satisfaction of urgency, approve filing of reference or petition. (21) Any emergency approval granted under sub-rule ( 19) shall be subject to post-facto review-by the full Committee within thirty days of the decision and the committee may decide to Provided that where. for reasons to be recorded in writing, a recommendation canrrot be frnalized within the said period, the Committee may extend the said period to such further time but not beyond limitation period provided in the law as may be necessary, subject to intimation to the Board. (15) The quorum for a meeting of the Committees shall be two Members, including the Chairman.

withdraw the case ifthe law and facts so permits (22) The Committee shall cause to be published, on a yearly basis, anonymized summaries of its recommendations. excluding confidential commercial information and taxpayer identifuing details. The published summaries shall include the questions of law considered, the decision criteria applied, and the recommendations made. (23) The Secretary shall maintain a searchable database of published decisions for refbrence by field formations and to ensure consistency in future decisions. (24) Chairman and Members shall hold office for a term of one year which may be extendable for a further term on continued fitness and satisfactory performance, as may be decided by the Board. (25) Chairman or any Member, may resign from his offrce at any time by writing under his hand addressed to the Board with thirty days notice. (26) Chairman or any Member may be removed by the Board on grounds of conflict ofinterest, misconduct, breach ofconfidentiality, or inability to perform functions, after providing an opportunity of being heard. (27) The Chairman and Members of each Committee shall be paid fees as follows:- (a) the Chairman shall be entitled to a monthly fee oftwelve hundred thousand rupees, and in addition thereto. a per case fee of twenty-five thousand rupees in respect of which a recommendation is made, whether in favour of filing or otherwise. subject to a maximum of twenty cases per month; (b) the Advocate Member shall be entitled to a monthly fee ol eight hundred thousand rupees. and in addition thereto, a per case fee of twelve thousand and five hundred rupees in respect of which a recommendation is made' whether in favour of filing or otherwise. subject to a maximum of twenty cases per month; (c) where a retired officer of Inland Revenue is nominated as a Committee member, he shall be entitled to a monthly fee of eight hundred thousand rupees. and in addition thereto, a per case fee of twelve thousand and five hundred rupees in respect of which a recommendation is made' whether in favour of filing or otherwise, subject to a ma,rimum of twenty cases per month; (d) the remuneration of the support staffshall be determined by the Board; and

(e) The serving Board Member and the Secretary shall not be entitled to additional remuneration: except as provided in rules related to reward and honorarium. (28) All Members shall be entitled to TA/DA for oflicial travel as admissible to a grade 2l officer ofthe Federal Govemment. (29) The Committee shall submit an annual report to the Board by the 3lst of March each year, covering the preceding financial year and shall consist of,- (a) the number of cases reviewed, and recommendations made (to file, not to file, or to withdraw); (b) the outcome of filed references and petitions (decided in favour, against, pending, or settled); (c) analysis of success rate and factors contributing to favorable or unfavorabIe outcomes; (d) revenue implications of decisions made pursuant to Committee recommendations; (e) identification of recurring legal issues and systemic problems requiring legislative or administrative intervention; and (0 recommendations for improving litigation management and enhancing the effectiveness of the Committee. (30). The annual report shatt be placed before the Board for consideration and appropriate action.''. lC. No.3(62)ST&FE-Policy/20261 (lz Second Secretary (ST