Sales Tax Instructions

Sales Tax Instructions, 2009
National Bank of Pakistan
[Issued by the CBR, Islamabad under the signature of Mr. Mumtaz Haider Rizvi, Chief.]
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C. NO.4/57-STB/97 DATED 16 TH SEPTEMBER, 1999
SUBJECT:-
REFUND OF EXCISE DUTY OR WAIVER OF SALES TAX ON
STOCKS OF DUTY-PAID SUGAR HELD IN SUGAR MILLS ON
01.04.1998.
I am directed to say that certain manufacturers of sugar have approached the
CBR stating that before 01.04.1998, they paid excise duty @ Rs.2100/- PMT after
preparation of proper AR-I, prescribed under Central Excise Rules but could not remove
their goods from the factory before 01.04.1998. As sugar was supplied after 01.04.1998,
it had become liable to sales tax also, under the sales tax law, irrespective of its having
paid excise duty at old full rate prior to 01.04.1998. This resulted into payment of CE
duty at old rates and charging of sales tax too, which was not warranted under the law.
Therefore, a request for refund of CE duty or waiver of sales tax on stocks of duty paid
sugar as on 01.04.1998 has been made by such manufacturers.
2. The Federal Government has been pleased to decide in this regard that
sales tax @ Rs.1650/- PMT may not be charged from the sugar manufacturers on such
quantity of un-cleared stocks (as of 01.04.1998) of sugar in respect of which CED had
already been paid @ Rs.2100/- PMT against AR-I prior to 01.04.1998 subject to the
following conditions:-
where sales tax already been charged/recovered on such stocks of 01.04.1998, no
cash refund of sales tax will be given, however, the manufacturers will be
allowed to apply for adjusting the sales tax paid, if any, against their future
liabilities. Collector of sales tax shall allow adjustment only in genuine and
bonafide cases after due verifications.
The quantity of sugar which has been supplied to registered taxpayers (where
possibility of claiming adjustment as input tax exists) will remain liable to sales
tax. In such cases the central excise duty in excess of Rs.400/- per tone will be
refunded by the Collector of Central Excise after the verification.
3. A copy of the Note, duly approved by the Finance Minister, is enclosed
for reference purposes only. The Collectors are advised to please process all such cases
accordingly.
[Issued by the CBR, Islamabad, under the signature of Mr. Abdul Razzaq, Secretary
(STP), addressed to the Collector of Sales Tax, Hyderabad/Multan/ Faisalabad/Lahore/
Gujranwala/Peshawar, the Collector of Custom, Lahore and the Collector of Cus & CE,
Peshawar/Gujranwala/Faisalabad/Multan/ Hyderabad, with their letter C. No.4/5 -STB/97, dated
23 rd August, 1999.] Copy of Note is reproduced below:-
NOTE FOR THE FINANCE MINISTER
C. NO.4/57-STB/97 DATED 23 RD AUGUST, 1999
SUBJECT.:
REFUND OF EXCISE DUTY OR WAIVER OF SALES TAX ON STOCKS
OF DUTY-PAID SUGAR HELD IN SUGAR MILLS ON 01.04.1998