Sales Tax Instructions

Sales Tax Instructions, 2009
& Federal Excise, Hyderabad / Quetta/Multan, the Collector of Sales Tax and Federal Excise,
LTU, Karachi / Lahore.]
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C. NO.1/22-STB/2002 DATED 26 TH JULY, 2005
SUBJECT:
CAPPING OF INPUT TAX ON CHEMICAL.
I am direct to refer to the subject cited above and to state that for the sales tax
refund purpose, the Board is pleased to provisionally allow 1% of FOB value for
chemical as the maximum capping concerning refund on chemicals used in leather
finishing, w.e.f 06.06.2005. However, input of chemicals purchased prior to 06.06.2005
shall be refunded @ 4% FOB as determined by the IOCO.
[Issued by the CBR., Islamabad, under the signature of Dr. Iftikhar Ahmed, Secretary
(STT), addressed to the Collector, Customs, Sales Tax & Central Excise, Hyderabad /Quetta/
Multan, the Collector, Collectorate of Sales Tax & Central Excise, Lahore/ Faisalabad/
Gujranwala/ Rawalpindi/ Peshawar, the Collector (Enforcement) / (Hdqrs)/ (Audit), Sales Tax
House, Karachi, the Collector, Large taxpayer Unit (LTU), Karachi / Lahore.]
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C. NO.4(18)STM/2003 DATED 28 Th JULY, 2005
SUBJECT:
SALES TAX AMNESTY UNDER SRO 520(I)/2005 DATE
06.06.2005-M/S MEDORA OF LONDON & GENERAL
COSMETICS (PVT) LTD.
I am directed to refer to Collector Sales Tax & Central Excise, Lahore letter C.
No. Audit-V/ST&CE/342/03/823 dated 26.06.2005 on the subject cited above and to say
that the Board has examined the matter and observed that the present case involves both
factual and legal matters. Firstly, whether the collectorate has sufficient evidence to prove
that the resumption of record, on the premise of which the whole case in based, was made
correctly, speak of the legal infirmities and shortcoming to this effect. In case the short of
legal evidence before the Supreme Court as well, the whole exercise is likely to end in
vain.
2. Secondly, whether there is sufficient evidence that the action were
deliberate. Section 36(1) empower the department to issue a show cause notice within 5
years of recovery of an amount where it was not levied or erroneously refunded by reason
of some collision and deliberate act, while section 36(2) empower the department to issue
show cause notice within 3 years where the tax was not levied, short levied or
erroneously refunded due to inadvertence, error or misconstruction. The Collectorate has
not indicated that there was any collusion involved, neither pointed out the officials or
person with whom the taxpayers colluded to evade tax, whether it is deliberate act is a