Sales Tax Instructions

Sales Tax Instructions, 2009
SUBJECT:
REFUND CLAIM OF CARRY FORWARD FILED BY M/S.
KAPCO
I am directed to refer to the Collectorate‘s letter C.No.22-IV/ForwardA-
IV/KAPCO/05/82590 dated 07.12.2005 on the subject cited above and to say that the
Board in an identical case of M/s Ibrahim Energy Ltd., Faisalabad, on the
recommendation of ADRC has issued orders allowing adjustment / refund of input tax
paid on purchase of POL products used in power generation, which was subsequently
used for the manufacture of taxable supplies. Copy of Board‘s said order is enclosed for
the ease of reference.
2. It is accordingly advised that refund of input tax amounting to Rs. 24.722
million paid by IV/KAPCO on the purchase of diesel may be allowed subject to
Collector‘s satisfaction that the same has been used in power generation, which was
subsequently used for manufacture of taxable goods.
3. It is further advised that all the appeals in identical cases pending
adjudication / appellate fora or in the courts of law may also be withdrawn in order to
maintain uniformity, besides being in line the with Board‘s policy to avoid unnecessary
litigation.
[Issued by the Government of Pakistan, Revenue Division, C. B. R. (Sales Tax & Federal
Excise Wing), Islamabad, under the signature of Mr.Ahmad Raza Khan, Secretary (ST&FE-L&P),
addressed to Mr.Abdul Wadood Khan, Collector (Enforcement), Large Taxpayers‘ Unit, Lahore.]
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C. No. 5/8-STB/2005 DATED 21 ST DECEMBER, 2005
SUBJECT:
CLARIFICATION REGARDING EXEMPTION OF SALES TAX
UNDER SRO 527(I)/2005 DATED 06.06.2005 ON RAW
MATERIAL FOR MANUFACTURING OF TRACTOR PARTS.
I am directed to refer to your letter C. No. MDP/IMP/188/05/5940 dated
27.10.2005 on the subject cited above and to clarify that zero-rating of parts is allowed
under SRO 527(I)/2005 for the manufacturers of plant and machinery. Since
manufacturing of tractor parts does not fall in the ambit of manufacturing of plant and
machinery, therefore, raw materials, imported for manufacturing of tractor parts are not
zero-rated in terms of SRO 527(I)/2005 dated 06.06.2005.
[Issued by the CBR, Islamabad, under the signature of Mr. Wajid Ali, Secretary (ST&FE-
Budget, addressed to the Collector, Collectorate of Customs, Sales Tax & Federal Excise, Multan.
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CBR‘s U.O. No. 1/5-STT/2005 DATED 26 TH DECEMBER, 2005