Sales Tax Instructions

Sales Tax Instructions, 2009
4. It is clear from the above that a person adjudicated as a defaulter under
the Sales Tax Act, 1990 is likely a judgement-debtor liable to action, including arrest and
detention in prison. However, the powers of arrest and detention in prison are not
automatic and mere inability of the defaulter to pay the adjudicated amount is not enough
for his arrest. A recovery officer will have to satisfy himself and record evidence to show
that the defaulter was guilty of conduct contemplated by Clause (a) and (b) of Section 51
of the Code of Civil Procedure read with Section 48(2) of the Sales Tax Act, 1990, before
taking any action. In other words the creation of a charge does not by itself become a
specific decree for enforcement through arrest and detention to the exclusion of execution
through other methods permissible under the law.
5. The Collectors are requested to properly brief their recovery officers
regarding the correct position under the law for recovery of sales tax arrears.
[Issued by the CBR, Islamabad under the signature of Mr. Akhtar Ali, Secretary (STP),
addressed to all the Collectors.]
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C. NO.9(36)ST/65 DATED 31 ST JANUARY, 1994
SUBJECT:- CHARGEABILITY OF SALES TAX ON ELECTRIC
TRANSMISSION TOWERS, LATTICE MASTS AND SIMILAR
STRUCTURES/TUBES USED FOR TRANSMISSION OF
ELECTRIC POWER-FALLING UNDER CHAPTER 73 OF PCT.
I am directed to refer to your C. No.2 NT/ST/Electric Poles/94, dated 15 th
January, 1994 on the above subject and to say that the scope of fiscal concessions
contained in SRO 600(I)/90 does not include supply of electric transmission towers,
lattice masts and similar structures / tubes (chapter 73 of PCT) which do not include in
the definition of ―machinery or components parts of machinery‖ given in the SRO. It is
pertinent to note that ― machinery is defined in SRO. 600(I)/90 dated 7 th June, 1990; and
it should be strictly followed for the purpose of concessions under the aforesaid SRO.
2. I am further directed to say that chargeability or exemption are basically
questions of facts. Such issues can be decided more accurately by examining them,
noting their function and the conditions laid down in any circular. All such issues may,
therefore., be decided by the field formations. In case any taxpayer is not satisfied he may
file appeal against the order. This is a proper way of implementing sales tax law. The
advice of CBR is required on questions of law and policy and not on questions of facts.
[Issued by the CBR., Islamabad, under the signature of Mr. Javed Iqbal Mirza, Secretary
(Tariff), addressed to the Collector, Central Excise and Sales Tax, Karachi and the Collector of
Customs, Central Excise and Sales Tax, Rawalpindi, Multan, Peshawar, Quetta, Hyderabad.]
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