Sales Tax Instructions

Sales Tax Instructions, 2009
490(I)/2003 is now requesting for
inclusion of polyester staple fiber in
his DTRE approval through
amendments.
7. Prior to SRO 490(I) 2003 dated
07.06.2003 the utilization period
under the rule 298 of DTRE Rules
was one year from the date of
approval and penalties started
accruing after completion of this
period. After the amendments vide
SRO 490(I)/2003, the utilization
period has been extended up to 18
months. Now the exporter who were
granted DTRE approval prior to the
amendment vide SRO 490(I)/2006 are
also claiming the same benefits of
utilization period. It is intimated that
in some of these cases, the utilization
period as per DTRE rules prior to
SRO 490(I)/2003 has already been
completed and penalties have started
accruing.
8. Rule 297(1) states that ―exporter
whose performance corresponds to the
performance criterion as per sub-rule
(4) shall be required to give
description and value of the goods in
application form set out in appendix-
I‖. However rule 297(4) states that the
exporter ―shall be entitled to request
approval for importation and domestic
sourcing free of all duties and taxes of
a quantity of inputs equivalent to
maximum export production
requirements in any consecutive six
months period in previous 24 months
―in addition appendix-I (C), annexure
-5,6,7 mentions quantities of input and
not only values. The problem arises
when exporters insist that they are
supposed to provide only description
and value of the goods under rule
297(I) while it is necessary for the
department to require maximum
export production of the applicant in
The Collectorates may examine each
of such hardship cases and send their
specific recommendation to CBR for
final decision as a special case.
Rule 297(I) binds the DTRE
applicants to provide description,
quantity and value of the input goods.
However, the exporter whose
performance correspondence to the
performance corresponds to the
performance criteria as per sub-rule
(4) of rule 297 are required to give
only description and value of goods
in the DTRE application form. This
non-mentioning of quantity is creating
enormous difficulties in monitoring
input and outputs. It is, therefore,
advisable that in addition to
description and value, information
about quantity may also be obtained
under the said sub-rule (4). However
in case of any subsequent changes,
amendments may be allowed in the
DTRE approval after ascertaining the
genuineness of the required
amendment.