Sales Tax Instructions

Sales Tax Instructions, 2009
STOCKISTS, DEALERS AND DISTRIBUTORS.
It has been observed that in certain cases, the counts /deniers and construction of
textile goods have not been declared in the tax invoices issued by registered persons
making taxable supplies thereof. This causes problems in verification of value (as the
value of textile goods is directly relatable to the counts/ deniers and construction thereof)
and also of its use in the goods in which these have been used as inputs.
2. All textile mills and persons making taxable supplies of textile items
(specially yarns and fabrics ) should specify the count / denier and construction thereof in
the tax invoices issued by them.
[Issued by the CBR, Islamabad under the signature of Mr. Abrar Ahmad Khan, Secretary
(STB), vide C.No.4/76-STB/97.]
[Rescinded vide STGO No.3 of 2004 dated 12 th June, 2004]
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C. NO. 1(185) S (STJ)/98 DATED 29 TH AUGUST, 1998
SUBJECT:-
W.P. NO. 153/98, FILED BY M/S. PREMIER PAPER MILLS
(PVT.) LTD.
I am directed to refer to your letter C. No Coor-3(105)/98, dated 25.08.1998 on
the above subject and to say that Notifications No. SRO 481(I)/98, SRO 575(I)/98 and
SRO 757(I)/98 are sub-ordinate legislations made by the Federal Government under
section 13(2)(a) of the Sales Tax Act, 1990. The said notifications do not contain any
benefit under sub section (3) of section (13) of the Act and, therefore, do not apply to the
additional tax accrued outside the scope of the said notifications. These notifications have
to be interpreted as such and the scope thereof cannot be expanded to grant benefits,
which are not otherwise intended in the notifications.
2. The additional tax and other sum payable under the Sales Tax Act, 1990
are included in the definition of ―tax‖ as per section 2(34) thereof. The notifications
issued under clause (a) of section (2) of section 13 cannot apply retrospectively or
implicitly to diminish a liability not covered by the said notifications as these
notifications have not invoked the provisions of sub-section (3) of section 13. These
notifications are not discriminatory in nature as it equally applies to the persons and class
of persons specified in the notification subject also to the conditions and limitations
specified therein. There can be many cases where persons have already paid the amount
of additional tax and penalties even prior to the notification. Even such cases are not
covered by the notifications not allow refunds involved therein.
3. Since additional tax and penalties are covered by the definition of ―tax‖
the said notifications, being sub-ordinate legislation, have to be interpreted strictly in
terms of the limitations and conditions, thereof. There are many judicial pronouncements
in this regard.
4. The Board, therefore, agrees with your view point and the counsel may
be advised to defend the respondent‘s case accordingly.