Sales Tax Instructions

Sales Tax Instructions, 2009
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SALES TAX RULING/INSTRUCTION No.21/2002
C.No.2(77)STP/95(Vol-II) DATED 28 TH MARCH, 2002
SUBJECT:-
SALES TAX AUDIT OF M/S PEARL CONTINENTAL.
I am directed to refer to your letter C.No.Audit-V/AMC/ST & CE/ 111/342,
dated 26.01.2002 on the subject cited above and say that adjustment of input tax on
vehicles is specifically barred by SRO 578(I)/98 dated 12.6.1998. Vehicles do not
constitute stock-in-trade, either under the definition given by Board vide letter of even
number dated 19.10.99 (copy enclosed) or under the Supreme Court‘s judgment in Civil
Appeal No.929 of 1995 (M/s Attock Cement Co. Limited vs. Collector of Customs,
Quetta and others (copy of relevant portion enclosed). The Board had ruled that goods
and commodities which are purchased for sale or for conversion into finished products
are stock-in-trade and the Supreme Court added that plant and machinery are also stockin-trade,
while accessories and spare parts are not.
2. In view of the above, the vehicles in question do not fall under either of
the categories, and therefore, do not constitute ‗stock-in-trade‘.
[Issued by the CBR, Islamabad under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary ST-L&P addressed to the Collector of Sales Tax & Central Excise, Lahore.]
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SALES TAX RULING/INSTRUCTION No.22/2002
C. No. 1(8)STT/2002. DATED 29 TH MARCH, 2002