Sales Tax Instructions

Sales Tax Instructions, 2009
(b)
The spiral cheese is costlier and stronger than the non-spiral cheese.
4. The Collectors are requested to obtain the samples of both spiral and
non-spiral cheese from the concerned industrial units and inform the Deputy Supt. and
Supt. etc. about the difference. No spiral cheese shall be allowed clearance without being
charged sales tax on ad val. rate.
5. The rates shall be applicable from 1 st November 1993. A notification on
the subject is being issued.
[Issued by the C.B.R. Islamabad, under the Signature of Mr. S.A Alam, Secretary (Sales
Tax), addressed to the Collector, Central Excise & Sales Tax, Lahore/ Karachi; and the
Collector, Customs, Central Excise & Sales Tax, Hyderabad/ Multan / Peshawar/ Quetta/
Rawalpindi/ and to Director General, Dte. Of Intelligence & Investigations of Customs, Central
Excise & Sales Tax, Islamabad].
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C. NO.1(4)GST-I/93 DATED 1 ST NOVEMBER, 1993
Under Notification No SRO 111(I)/90, dated 1 st November 1990, certain goods
were specified in respect of which claim of input tax was disallowed. The said SRO has
now been replaced by a new SRO, a copy of which is enclosed. Under this Notification
input tax credit will not be allowed in respect of all goods which are acquired otherwise
than as stock in trade by a registered person. The term ―stock in trade‖ shall mean goods
and commodities, which are purchased for sale or for conversion into finished products.
2. It is also clarified that adjustment against output tax on plant and
machinery in sixty equal monthly installments is permissible under second proviso to
Section 10 of the Sales Tax Act, 1990. This ―adjustment‖ is not ―input tax credit‖ as
allowed under Section 7 of the said Act. Adjustment on plant and machinery, therefore,
has nothing to do with input tax credit. Since maintenance spares of machinery are
distinct from plant and machinery, they are not covered under section 10 of the Act. As
already intimated by CBR Sales Tax paid on spares parts on machinery cannot be
allowed as adjustment under Section 10.
3. As Section 10 specially deals with adjustment on Sales Tax on plant and
machinery, input tax credit cannot be claimed under Section 7 for Sales Tax paid on spare
parts of machinery because in this case the provision of Section 10, which is more
specific, are attracted to the exclusion of provisions of Section 7, which covers every type
of goods. This finding gets support from a well-established principle that general
provision does not rule out specific provisions.
[Issued by the C.B.R. Islamabad, under the Signature of Mr. Akhtar Ali, Secretary
(STP),addressed to the Collector, Central Excise & Sales Tax, Lahore/ Karachi; and the