' The present suit has been tiled for declaration and permanent injunction. In that, by a Finance Act of 1994 amending the Central Excises Act, 1994, (hereinafter referred to as the Act, 1944) inter alia, added heading 9805.2000 in the First Schedule to the Act, 1994. The consequence of the said addition was that, Stevedores became liable to collect/pay Central Excise Duty on their services as Stevedores. The rate of Excise Duty payable was 12,5% In terms of S.R.0.456(1)/96 read with S.R.O.
680(1)195, dated 11=7=1995 and S,R.O. 421(1)/97, dated 13-6-1997, It is the case of Mr. Makhdom Ali Khan that under the Excise Rules of 1994, a procedure has been prescribed for collection of the Central Excise Duty in Rule 96-ZZM.
2. The question at hand is whether Stevedores engaged in the business of chandlers and other various business which may though relate to shipping or other supplies are separate and distinct in nature and are termed separately, charged separately and if duty is payable is at rates which may be at variance with the rates of Stevedores. It is also stated that certain business are also zero-rated or not chargeable at all. The Central Board of Revenue has issued a Central Excise General Order No,1/1998 being C.No,1(35)-CEB/90, dated 8-7-1998 (the CEGO) in which it is stated, ' Irrespective of dictionary meaning of stevedoring services, it includes the services, facilities and utilities terminating in Pakistan or its tariff area. Therefore. The services rendered or provided by the stevedores at the tariff area fall in the excisable net. The categories of all other services, other than stevedoring service, when performed by stevedores in the tariff area, are subject to central excise duty ' In view of the said action taken in defining that, irrespective of the dictionary meaning of stevedoring by the CEGO, the department has included in it various items that are not in fact stevedoring business. It is important to, before dealing with subject, refer to the relevant Notifications S.R.O.456(I) of 1996 dated 13-6-1996 as amended by subsequent notifications referred to above. The notification has been issued in exercise of the powers conferred by subsection (1) of section 12-A of the Act, 1944 read with section 4(2) thereof and in supersession of the Ministry's earlier Notification S.R.O. 546(1)/94, dated 9-6-1994. Section 12-A reads as under:- "12-A Exemptions."---(1) The Federal Government from time to time, by Notification in the Official Gazette, exempt subject to such conditions, if any, as may be specified therein, any goods or class of goods or any services or class of services from the whole or any part of the duty leviable under this Act.
(2) The Central Board of Revenue may, by special order in each case, exempt from the payment of the whole or any part of the duty leviable under this Act, under circumstances of an exceptional nature to be stated, in such order, any goods or services on which such duty is leviable.
(3) Any notification or order issued under this section shall be effective from the day specified in the notification or the order, notwithstanding the fact that the issue of the Official Gazette in which such notification appears is published, or the orders is delivered to the person concerned, at any time after that day."
' Section 4(2) of the Act, 1944 reads as under:--- "(2) Notwithstanding the provisions of subsection (1), the Federal Government may, by notification in the official Gazette, declare that in respect of any goods or class of goods the duty shall be charged on the retail price fixed by the manufacturer, inclusive of all charges and taxes, other than sales tax levied and collected under section 3 of the Sales Tax Act, 1990, at which any particular brand or variety of such article should be sold to the general body of consumers or, if more than one such price is so fixed for the same brand or variety, the highest of such price: ' Provided that the retail price shall be legibly, prominently and indelibly printed or embossed on each article, packet, container, package, cover or label, as the case may be.
' The power conferred on the executive namely Board of Revenue and the authority granted by law is to issue notifications for the purposes of exemption. The language of the law is in fact, that it could amount to levy for a duty that, it provides that the rate of duty chargeable shall be mentioned in the notification so issued by the Central Board of Revenue.
3. In the present case the relevant portion that needs to be looked into is item No,9805.000 and its sub-headings. These headings are in the nature of harmonisation and classification and every item is given a specific head. It will be seen that shipping agents have been assigned the heading 9805.100 whereas stevedores have been assigned 9805.200. Similarly travel agents, advertising agents and ship chandlers etc. Have all been rendering services but have been charged separately at separate rates.
4. It is well-settled law that taxing statutes should be read and interpreted strictly. Nothing can be added to or deleted. The ordinary dictionary meaning of stevedoring as contained in New Oxford English Dictionary is as follows:--- " A person employed in loading and unloading the cargoes of ships..."
' Black's Law Dictionary (5th Edition) defines 'Stevedore' at page 1268 as follows:--- "A person employed in loading and unloading vessels."
'Stevedore' is defined in the following manner in Stroud's Judicial Dictionary (Third Edition), page 2864:-- "Formerly the loading and unloading a ship was done by the master, but it has been found necessary, particularly with regard to large cargoes, that some person should be employed to load and unload who is especially accustomed to that business. Hence has arisen the use of stevedores, who are in the position of persons exercising an independent employment. In one sense the stevedore is the agent of the ship owner, because he is set in motion by him; but still he is not such agent for whose acts the ship-owner is liable...."
' The Central Board of Revenue by passing this general order and which is not in exercise of its powers under the Act, 1944 has extended the meaning of stevedoring . It has been mentioned as follows:- "The matter was referred to Law and Justice Division. They have opined that under section 2(20) of the Act, 1944. 'excisable services' means services, facilities and utilities specified in the First Schedule read with Chapter 98 thereof, including the services facilities and utilities originating from Pakistan or its tariff area or terminating in Pakistan or its tariff area. Stevedoring services are listed in the First Schedule to the Act, 1944, section 4(3)(b) of the Act, 1944, reads that the amount with reference to which the duty shall be levied shall be the total amount charged for all services, facilities and utilities provided or rendered, including charges for supplies or merchandise therewith..."
' Reference has been made in the Central Excises General Order to section 2(20), Act, 1944 which reads as under:- "'excisable services' means services facilities and utilities specified in the First Schedule read with Chapter 98 thereof, including the services, facilities and utilities originating from Pakistan or its or its tariff area or terminating in Pakistan or its tariff area;"
' The important aspect that needs to be looked into is words " specified in the First Schedule and read with Chapter 98 thereof". Chapter 98 deals with the services liable to excise duty. The Schedule provided with the Excise Act is also under the harmonised classification and provides a rate of 50%. However, the Notification being SRO 456(1)/96 aforereferred grants an exemption and charges a rate of 12.5%. The Schedule mentions the word stevedores' and cannot be meant beyond normal English meaning of the word which has been referred to above. Extortion or enhancement by way of general orders is unlawful and without authority. The only method in which a Schedule could be amended is by an Act of Parliament and not by an administrative order. In view of the above, the prayer in suit is allowed. The Central Excise General Order No,1 of 1998 bearing Reference C.No,1(35)-CEB/90 dated 8-7-1998 is declared void ab initio, issued without lawful authority and of no legal effect. In view of the fact that the said circular has been held to be void and of no legal effect, any claims or demands or otherwise are also declared to be of no legal effect. The defendants are, therefore, restrained from claiming any amounts on the basis of the aforesaid CEGO. The suit is decreed in the above term and disposed of accordingly.