Sales Tax Instructions

Sales Tax Instructions, 2009
wherein, the same company carrying out ginning and spinning activities had
to take two separate sales tax registrations under the said Rules and ginned
cotton was used by that person for his other taxable activities registered
separately as per requirements of the rules. It was simply a case of involving
transfer of goods between two different divisions of the same manufacturer
company required to take two separate registrations under the special
procedures. Besides, they did never contest that ginned cotton supplied by
them was not chargeable to sales tax and there was a case of straightening the
records/accounts in accordance with the sales tax laws.
6. From the foregoing, it can be concluded that the act of M/s.Mandviwalla
Mauser Plastic Industries Limited of not starting payment of sales tax on the pointation of
their products chargeability to sales tax by the Collectorate of Sales Tax, Hub vide their
letter dated 4-2-1997 followed by the show cause notice dated 24-3-1997 and making the
date of appellate order of the Collector (Appeals) as date of finding their products as
taxable is not entitled to attract the provisions of section 65. Besides, the argument of
non-charging sales tax from the buyers does not absolve them from their obligation to
pay sales tax after the expiry of the concession under SRO 529(I)/88, dated 26-6-1988.
The request of M/s. Mandviwalla Mauser Plastic Industries Limited that they may be
allowed to issue sales tax invoices at this belated stage, so that their buyers may take
input tax adjustment, can‘t be allowed since it is not in accordance with the express
provisions of the Sales Tax Act, 1990 on the subject. Similarly, the argument that their
buyers have used the goods in question in the manufacture and supply of taxable goods
and have paid sales tax on the value of inputs supplied by them and hence there is no loss
to the Government, too, is not acceptable under the principle of VAT mode sales tax
adopted in the statutory provisions of the Sales Tax Act, 1990.
7. Keeping in view the above observations and conclusions, the request of
M/s. Mandviwalla Mauser Plastic Industries Limited, Karachi for grant of exemption
under section 65 of the Sales Tax Act, 1990 is rejected.
[Issued by the CBR., Islamabad, under the signature of Mr. Sarfraz Ahmed Khan,
Additional Secretary, being addressed to M/s. Mandviwala Mauser Plastic Industries Limited,
Karachi & copy to the Collector of Customs, Sales Tax & Central Excise, Quetta.]
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C. NO.3(65)STM/2000 DATED 26 TH OCTOBER, 2000
SUBJECT:- THE SALES TAX REFUND RULES, 2000 NOTIFIED VIDE SRO
417(I)/2000, DATED 20.06.2000.
I am directed to refer to your letter C. No. STR/MIS/2000/1106, dated 07.10.2000
on the subject cited above and to state that refund to manufacturer-cum-exporters who are
also making local supplies is governed under sub-rule (2) of Rule 7 of the Sales Tax
Rules, 2000. In such cases, full amount of refund on the exported goods and 50% of the
refund payable on the available stocks is to be paid within 30 days of filing the refund
claim (along with supportive documents) subject to category status of the exporter
(‗Gold‘, ‗Silver or ‗Other‘). The remaining 50% refund on stocks is to be paid within the
next 30 days after verification of deposit of input tax and available stocks. However, if
such scrutiny and verification is not completed within 60 days of filing the claim along