Sales Tax Instructions

Sales Tax Instructions, 2009
UNDER COERCION ON ACCOUNT OF CHILLING CHARGES
I am directed to refer to the above cited above and to say that the beverage
manufacturers have approached the Board that the Collectorates have refused to entertain
the refund claims filed by them under section 66 of the Sales Tax Act, 1990 on the
grounds that the incidence of excise duty and sales tax paid by them on account of
chilling charges has been passed on to the consumers. Hence, refund is not admissible in
terms of section 3D of the Central Excises Act, 1944 read with section 3B of the Sales
Tax Act, 1990.
2. The issue has been examined in the Board. Since, all the beverage
manufacturers are corporate sector companies registered under the Sales Tax Act, 1990, it
is advised that the principal laid down by the appellate Tribunal and finally held up by the
Supreme Court in SCMR-1266 in case of sugar mills should be treated as the instrument
to determine whether or not the incidence of excise duty and sales tax has been passed on
to the consumers. According to the said principal, if the price of a product has remained
unchanged during the period of coercive charge of tax / duty as compared to the price
determined and received by the taxpayer prior to that period, it then stands proved that
incidence has not been passed on to the consumers.
3. Accordingly the refund claims filed by the beverage manufacturers on
account of chilling charges shall be processed by comparing the sales tax invoices of the
disputed product with their earlier invoices of the same item. If sales tax invoices of the
disputed goods are equal in terms of sale price as compared to the previous invoices,
refund shall be allowed.
[Issued by the Government of Pakistan, (Revenue Division), Central Board of Revenue,
[Sales Tax Wing], under the signature of Mr. Aamer Amin Bhatti, Secretary (ST-L&P), addressed
to the Collector, Collectorate of Customs, Sales Tax & Central Excise, Hyderabad/ Quetta/
Multan, the Collector, Collectorate of Sales Tax & Central Excise, Lahore/ Faisalabad/
Gujranwala/ Rawalpindi/ Peshawar, the Collector, Enforcement/ Headquarters/ Audit, Sales Tax
House, Karachi and the Collector, Large Taxpayers Unit, Karachi.. Copy to the Chief (Central
Excise), Central Board of Revenue, Islamabad for information, Mr. Muhammad Ali, M/s.
Commerce & Revenue Consultants, 510, ST.No.9, Sector F-10/2, Islamabad, with reference to his
letter No. Nil dated 20.10.2003 and the Joint Director, Computer for hosting of WEB.]
********
C. NO. 1(6)STR/2004 DATED 25 TH AUGUST, 2004
SUBJECT
IMPOSITION OF CED IN VAT MODE ON SHIPPING AGNETS
I am directed to refer to your letter / fax Ref. No.PSAA/157 dated 12.08.2004 on
the subject cited above and to clarify that if a Slot Carrier in not issuing ―House Bill of
Lading‖ or collecting freight, the provisions of amendment made vide SRO 621(I)/2004
dated 17 th July, 2004 should not apply and he is required to charge, collect and pay
central excise duty at the standard rate of 15% of the commission received by him.