Sales Tax Instructions

Sales Tax Instructions, 2009
Gujranwala, (East)Karachi, (West) Karachi, Lahore, Multan, Hyderabad, Quetta, Faisalabad &
Secretary (Sales Tax Judicial).]
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C.No.1/63-STT/99 DATED 8 TH DECEMBER, 2000
SUBJECT:-
EXEMPTION FROM SALES TAX ON THE SUPPLIES OF CNG
KITS FOR AUTOMOTIVE VEHICLES – SUBJECT STUDY ON
SALES TAX ON NATURAL GAS.
I am directed to refer to your letter No.21-ap-Spl/DGARR./SS/ST/ RAW, dated
06.11.2000 and to state that the issue has been examined. The Notification No. SRO
714(I)/2000, dated 30.9.2000 mentions supplies of ‗CNG Kits‘ and not ‗cylinders‘ for
exemption. On the other hand, the customs Notification No. SRO 38(I)/98, dated
21.1.1998 separately mentions conversion kits and cylinders. This clearly means that kits
and cylinders are separate and distinct items, as is further confirmed by separate PCT
headings. The rational for not extending the exemption to cylinder seems to be that
cylinders are multi-purpose items, and have use other than in CNG equipment. Even
before the Budget 2000-2001, supply of only CNG conversion kits was exempt under the
Sixth Schedule to the Sales Tax Act, 1990.
2. In view of the above, Board agrees with the views of DRRA that supply
of cylinders are not exempt from sales tax.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (STL&P) addressed to the Deputy Director, Revenue Receipts Audit (North) Lahore.
Copy endorsed to all the Collectors of Sales Tax & Central Excise.]
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C.NO.1(219)STJ/99 DATED 11 TH DECEMBER, 2000
SUBJECT:- CLARIFICATION REGARDING APPLICABILITY OF THE
ORDERS OF HONORABLE HIGH COURT PESHAWAR M/S.
LUCKY CEMENT ETC. W.P. NOS. 1163/2000, 1182/2000 AND
1145/2000.
The undersigned is directed to refer to the interim order dated 11.10.2000
directing for maintenance of status quo, granted by the Honourable Peshawar High Court,
Peshawar, in Writ Petition Nos. 1163/2000, 1182/2000 and 1145/2000 filed by M/s.
Bestway Cement, Lucky Cement and Nazimpur Cement in which one of the dealers has
been impleaded as petitioner in every unit‘s petition (Annex-A).
Central Board of Revenue is of the view that the benefit of the orders passed in
writ petition can only be availed by the petitioner/dealer who filed writ petition and no
benefit whatsoever can be gained by any other dealer/ distributor. Further, the jurisdiction
of Peshawar High Court is limited within its territorial area and cannot be extended to
other Provinces.