Sales Tax Instructions

Sales Tax Instructions, 2009
2. They shall work under Chief (ST.AIU). for the time being, Chief (ST-II) shall
look after the work of Chief (ST-AIU).
3. This issues with the approval of Member (Sales tax).
(Lutufullah Virk), Chief (ST-II).
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C.No.4/57-STB/97-Voll-II DATED 22 ND MARCH, 1999
SUBJECT:- RECOVERY OF SALES TAX NOT-PAID/SHORT-PAID BY A
SUGAR MILL DUE TO ITS ADMISSIBLE DUTY DRAWBACK
CLAIM(S) OUTSTANDING AT VARIOUS CUSTOMS
(EXPORTS) STATIONS.
I am directed to reiterate the decision dated 30 th September, 1998 of the
Commerce Minister that ―no penalty is to be levied against sales tax adjustment made by
sugar manufacturers provided government owes money as duty drawback from sugar
mills.‖
2. In the meeting held on 15 th February, 1999, this issue was raised by the
PSMA and the CBR representative clarified that the individual mills have to satisfy that
they had exported sugar and filed rebate claims with customs before they adjusted such
amounts from their monthly returns. Therefore, such cases will have to be scrutinized on
case-to-case basis.
3. In the said meeting of 15 th February, 1999, chaired by the Commerce
Minister, it was decided that ―where the sales tax adjusted after duty drawback became
due, no penalties, etc., are to be levied by the sales tax authorities‖.
4. Accordingly, in cases where a sugar mill reports short-payment or nonpayment
of its sales tax due to any monthly Return-cum-Payment Challan, it shall also
indicate on the reverse of each copy of the challan, a statement about pending duty
drawback claims in the following format:-
S.No.
Name of the Customs
(Export) station where the
D.D. claim is pending
D.D. claim (SR-2) No. &
date assigned by the
Collectorate of Customs
Amount of claim
(1) (2) (3) (4)
5. Soon on receipt of such declaration on a short-payment/non-payment
Return-cum-Payment Challan from the NBP Branch, the Collectorate of Sales Tax shall
recover the amount from the respective Collector of Customs (Export) under section
48(1)(a) of the Sales Tax Act, 1990. Case for waiver of the statutory penalty and
additional tax, involved in such cases, may be sent to the CBR for recovery of dues,
together with your recommendations.
6. CBR has noticed that some of the sugar mills have made short- payment/
non-payment without filing their duty drawback claims with the customs. In such cases,
they shall not be entitled to the promised relief in penalty and/or additional tax.
[Issued by the CBR, Islamabad under the signature of Mr. Muhammad Tahir, Secretary
(STP) addressed to Collectors of Sales Tax, Hyderabad/Multan/Faisalabad/Lahore/ Gujranwala
/Peshawar. Copy to, S(STP), S(STT), S(STM), S(ST.Edu.), CBR. Section officer, Ministry of
Commerce, Government of Pakistan, Islamabad with reference to his O.M.No.7(3)/98-E.V, dated