Sales Tax Instructions

Sales Tax Instructions, 2009
addressed to all the Collectors of Sales Tax.]
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C.No. 18(17)ST/82 DATED 3 RD OCTOBER, 2003
SUBJECT:-
EXEMPTION ON HYDROGEN GAS.
I am directed to refer to the above cited subject and to state that M/s Pakistan
Vanaspati Manufacturer‘s Association (PVMA) have made a representation to exempt
consumption of such hydrogen gas generated within a manufacturing premises and used
in-house, for the manufacture of vegetable ghee from edible oil as the final product i.e.
vegetable ghee remains taxable.
2. The issue has been examined in the Board, Briefly. Hydrogen gas is used
to convert refined & bleached edible oil into vegetable ghee in the presence of Nickle
Catalyst. Ghee manufacturing units have ―Gas Cracking‖ units which manufacture
Hydrogen Gas either from natural gas or electrolysis of water. In the budget, FY 2003-04,
the wording of Sr.No. 43 of the Sixth Schedule of the Sales Tax Act, 1990 was amended
to read as under:
―Raw materials and intermediary goods or services if used by the sale tax
registered manufacturer, himself in the manufacture of goods subject to sales
tax.‖
Considering the aforesaid provision of law, it is apparent that if a manufacturer of
vegetable ghee is producing Hydrogen Gas within his premises for use in the
manufacture of final product i.e. vegetable ghee, its consumption within the same
premises is exempt from the levy of sales tax.
3. However, this exemption will not apply to such hydrogen gas which is
not manufactured within his own premises or is either purchased/supplied by the
manufacturer of vegetable ghee.
4. This clarification shall be effective prospectively and shall not apply to
cases sub-judice before different adjudicating fora.
[Issued by CBR, under the signature of Dr. Fareed Iqbal Qureshi, Secretary (STT), addressed to
all the Collectors and copy endorsed to Dr. Ghulam M. Samdani, Secretary, Pakistan Vanaspati
Manufacturer‘s Association, Islamabad..]
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C.NO. 3(2)STP/99 (Pt) DATED 9TH OCTOBER, 2003
SUBJECT:-
AMENDMENT IN REGISTRATION RULES
I am directed to refer to your letter C.No.54-ST/Textile/C&E-II/03/550, dated
11.07.2003 on the subject cited above and to say that amendment made in the Sales Tax
Act, 1990 and the Registration Rules, 1996 regarding registration of sales tax are