Sales Tax Instructions

Sales Tax Instructions, 2009
2. The question has been examined in the Law, Justice and Human Rights Division. This
Division is of the view that as the Constitution has been held in abeyance vide Paragraph 2(a) of
the Proclamation of Emergency dated the 14 th October, 1999, the provisions of the Constitution
concerning the repeal of Ordinance after the expiry of the specified periods, shall not affect the
continuance and operation of the Ordinances. The Ordinances shall, therefore, continue in force
so long as the Constitution remains in abeyance. However, any such Ordinance can be withdrawn
or amended by the President or the Governor.
(Ch. Irshad Ahmad),
Secretary.
All Ministers / Division etc. of the federal Government, Islamabad/Rawalpindi.
[Copy to all Chief Secretariats of the Provincial Government, Major General Anis Ahmed Bajwa,
Vice Chief of General Staff, G. H. Q., Rawalpindi.]
(Ghulam Rasul)
Joint Secretary
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C. NO.1(229)STT/98 DATED 4 TH NOVEMBER, 1999
SUBJECT:
WRIT PETITION NOS. 1713/98, 2187/98 FILED BY M/S.
NORTHERN BOTTLING CO. (PVT.)LTD.
I am directed to refer to your letter C. No.IV-ST(Law-59 98/200 dated
27.10.1999 on the above subject and to say that an appeal leave for appeal, against the
judgment dated 06.10.99 passed by the Honourable Peshawar High Court in W. P.
No.1713/98, may be filed URGENTLY in the appeal it may be emphasized that:-
(i)
(ii)
(iii)
retail price as defined in section 2(27) of the Sales Tax Act, 1990 does
not include (and rather specifically excluded) the element of sales tax.
Unlike central excise duty, sales tax is always levied over and above the
retail price. The retail price plus the sales tax constitutes the consumer‘s
price;
it is not correct to assume, as in paragraph 6 of the judgment that ‗at the
end of sub-section (1A), it is expressly provided that one percent is a not
addition to rate specified in sub-section (1)‘. Liability of further tax on
goods (at manufacturing stage) liable to sales tax on retail price basis is
not diminished by the proviso number 1 of section 3(1-A); and
the amendment made in sub-section (1-A) through the Finance Act,
1999, is aimed to remove doubts, disputes and ambiguities, if any, in this
regard. The Legislation‘s interest was to levy the further tax under
section 3(1-A) on all persons (except the ones specified in the proviso
thereof) other than a registered person w.e.f. the implementation of the
Finance Act, 1998.