Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO. 2(65)STP/95, DATED 26 TH JULY, 2001
SUBJECT:- CLARIFICATION REGARDING DISTRIBUTION OF COSME-
TICS MANUFACTURED IN MINGORA
I am directed to refer to your letter C.No.8-ST/Audit&Rec/Forvil/2001/611,
dated 02.07.2001 on the subject cited above and to request you to furnish replies to the
following questions immediately.
(xvii) From your reply to the Federal Tax Ombudsman, it appears that the
Collectorate has already lodged an FIR in the case. The Collectorate may
please intimate the circumstances whereunder such action was taken
without awaiting Board‘s response although a reference had already been
made to the Board;
(xviii) whether the Lahore office of M/s. Forvil Cosmetic was involved in any
axable activities i.e. whether any taxable supplies were actually being
made from that office or it was merely being used as a liaison office for
their manufacturing business in non- tariff area as claimed by the
complainant;
(xix) there are two requirements to prove that supply was made, i.e. delivery
of goods and receipt of payment. Whether the Collectorate has any
evidence to the effect that goods were being delivered from the Lahore
office and that payments were being received therein;
(xx) whether there is any documentary proof that goods were supplied from
the manufacturing unit in Mingora to the Lahore office, and sales were
being made from the Lahore.
(xxi) whether the Lahore office was used for making purchases of raw
(xxii)
material on behalf of the Mingora Unit.
what are the reasons for not following the same course of action against
offices of other manufacturers of Mingora located in Lahore, although
the Collectorate‘s staff also visited such offices (e.g. M/s. Envoy, M/s.
Gypsy).
(xxiii) whether names of the actual directors/owners were ascertained before
lodging FIR, or the FIR was lodged against any unconcerned persons;
(xxiv) whether the Collectorate made any extra efforts to get show cause notice
issued by Collector (Adjudication) out of turn, although as alleged by the
complainant, show cause notices have yet to be issued in case made
several months ago.
2. Since the Federal Tax Ombudsman has ordered that the matter be
decided by the Board within 30 days, the Collectorate is advised to re-examine the matter
and immediately send a comprehensive report to the Board replying to each of the above
queries, supported by evidence, if any, regarding making of taxable supplies by the office
of M/s. Forvil Cosmetics in Lahore. Photocopy of the relevant case file (both notesheet
side and correspondence side) may please be sent to the Board. It may also be noted that