Sales Tax Instructions

Sales Tax Instructions, 2009
business activity‘ of that registered person, and that it is ‗not a frequent and constant‘
taxable supply by such person.
2. It is clarified that sales tax is to be charged, levied and paid on all taxable
supplies made by a registered person under section 3 of the Sales Tax Act, 1990 read
with sub-section (33), (35), (39) and (41) of section 2 ibid. There is no legal provision
excluding the sale of old plant and machinery, vehicles or scrap, etc. from the purview of
taxable supply. The Sales Tax Act, 1990 makes no distinction between goods supplied by
a registered person ‗in the normal and continuous course of business activity‘ as a
‗frequent and constant supply‘ or otherwise, and there can be no exemption on
presumptions.
3. The Collectorates are therefore advised to recover sales tax on all such
supplies, and to immediately file appeals in case any orders to the contrary have been
passed by adjudicating/appellate fora. A list of such cases decided so far against the
above viewpoint may be furnished to the Board urgently, giving following particulars:
(i)
(ii)
(iii)
(iv)
(v)
Name, address and registration No. of the unit.
Particulars of goods, their value and amount of sales tax involved.
Order No. and date.
Name & designation of adjudicating officer.
Whether any appeal has been filed by the Collectorate; if so its present
status.
4. In case the matter is before a superior Court, the Collectorate should
engage a good counsel, properly briefed, to defend the department. Collector of Sales Tax
& Central Excise (East/West), Karachi is especially advised to strongly pursue the
appeals presently pending in the Sindh High Court. A brief, which gives some points