Sales Tax Instructions

Sales Tax Instructions, 2009
pending contravention cases regarding non-achievement of export targets as well as value
addition (Annex-A). However, SRO 455(I)/2004 did not invoke section 13 of the Sales
Tax Act, 1990, although in spirit the scheme envisaged under the said SRO was floated
for discharge of all liabilities arising out of SRO 27(I)/98, SRO 369(I)/2000 and SRO
439(I)/2001. Therefore, sales tax liabilities arisen under SRO 27(I)/98 dated 17.01.1998
still hold ground. This omission was mainly on account of flawed appreciation of sales
tax exemption regime as by that time plant and machinery were already exempt / zerorated
for sales tax purpose under various SROs mentioned in para-2 above.
6. To rectify the present anomalous situation and to give the desired effect
to the amnesty scheme envisaged under SRO 455(I)/2004 dated 12.06.2004, the Central
Board of Revenue is of the opinion that a notification has to be issued under section 13 of
the Sales Tax Act, 1990 exempting the sales tax liabilities on plant, machinery and
equipment imported under notification SRO 27(I)/1998 dated 17.01.1998 for the
importers-cum-manufacturers who have discharged their liabilities of customs duty by
availing the option to pay concessionary rate of duty under SRO 455(I)/2004 dated
12.06.2004 amended vide SRO 734(I)/2004 dated 28.8.2004. Draft Notification enclosed
as (Annex-B).
7. After the issuance of the aforesaid Notification, the cases referred to in
para-4 above instituted against the importers-cum-manufacturers will need to be
withdrawn through an administrative order. Resultantly, the amounts of sales tax
deposited in respect of the liabilities adjudicated in some of the cases would become
refundable in the opinion of the Central Board of Revenue.
8. Law, Justice and Human Rights Division is requested to examine the
legal propriety of the remedial measures proposed at paras-6 & 7 above and give its
opinion enabling the Central Board of Revenue to proceed further in the matter.
[Issued by the CBR, Islamabad, under the signature of Mr. Wajid Ali, Secretary (ST&FE-
Budget, addressed to the Secretary, Law, Justice and Human Rights Division, Islamabad.
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C. No. 3/13-STB/99 DATED 27 TH DECEMBER, 2005
SUBJECT:
REVIVAL OF SHIP BREAKING INDUSTRY
I am directed to refer to your letter dated 22.12.2005 on the subject cited above
and to clarify that under Rule 81 of the Sales Tax Special Procedure Rules, 2005 payment
of sales tax on the basis of minimum value addition of 5% over and above the sales tax
paid @ 15% leviable on the deemed import value shall be treated as full and final
discharge of liability for local supply of scrap obtained from ship breaking. However in