Sales Tax Instructions

Sales Tax Instructions, 2009
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Sales Tax General Order No.3/1991 DATED 28 TH DECEMBER, 1991
SUBJECT:- CHARGEABILITY OF SALES TAX ON SECOND HAND
BAILING HOOPS.
A question has arisen about the taxability or otherwise of the second hand baling
hoops. The issue has been examined in the Board after receipt of representation from
various quarters. It has been found that bailing hoops classifiable under PCT heading No.
73.26 are manufactured in the re-rolling mills and are mostly purchased by the ginning
factories for fastening the cotton bales. Sales Tax is livable at the manufacturing stage in
the re-rolling mills. Their cutting or unfastening during opening of the bales at the textile
mills does not render them liable to sales tax as opening and cutting out of hoops for the
purpose of re-use does not attract the definition of manufacture. As regards the
classification of the item in question, it is clarified that it does not fall within the
definition of waste and scrap as the explanatory notes to heading No. 72.04 of the
harmonized system exclude articles, which with or without repair or renovation can be reused
for their former purpose.
[Redundant vide C.No. 3(1)STP/98 dated 16.07.1998]
[Issued by the CBR, Islamabad under the Signature of Mr. Rozi Khan Burki, Second
Secretary (Sales Tax) addressed to all the Collectors.]
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SALES TAX CIRCULAR NO.1/1994.
C.No. 1(34) GST-1/92 DATED 18 TH JANUARY, 1994
SUBJECT:- RECOVERY OF ARREARS UNDER SECTION 48(2) OF THE
SALES TAX ACT, 1990 READ WITH SALES TAX RECOVERY
RULES, 1992.
A question has arisen whether a defaulter of sales tax can be arrested and
detained in prison under Section 48(2) of the Sales Tax Act, 1990 read with Sales Tax
Recovery Rules, 1992. It is generally argued that as there are no specific provisions of
arrest under Section 33 or under any other section of the Sales Tax Act, such defaulters
cannot be arrested.
2. The issue has been examined in detail in the Central Board of Revenue.
It appears that the scope of Section 48(2) of the Sales Tax Act, 1990 has not been