SALES TAX GENERAL ORDER NO. 2
OF 1999,DATED 16TH FEBRUARY, 1999
[Reported as PTCL 1999 St. 911
SUBJECT:--FORMAT OF BANK GUARANTEE IN CASES WHERE RECOVERY IS ORDERED TO BE STAYED AGAINST BANK GUARANTEE TO THE SATISFACTION OF THE RESPONDENT DEPARTMENT (COLLECTOR OR BELOW AND CBR).
It has been observed by the Board that various formats of Bank Guarantees are tendered and accepted by the Collectorates in cases where, in litigation cases, recovery of sales tax is ordered to be stayed against Bank Guarantees to the satisfaction of the respondent department viz. the Federal Government, Central Board of Revenue, Collector concerned or any subordinate officer.
2. With a view to standardize the format of such guarantees, a draft of the Bank Guarantee is enclosed herewith. The officers of Sales Tax may, in cases where recovery of sales tax is stayed in litigation cases against Bank Guarantees to the satisfaction of the respondent officer/ department, require the petitioners to submit the Guarantee in the enclosed format, with such modifications/alterations as are considered necessary and appropriate by the said respondent officer/department for his satisfaction.
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DRAFT FORMAT
OF
BANK GUARANTEE
(Annex to the Sales Tax General Order No._____________________ /99)
The Collector of Sales Tax,
________________________
We (Bank)____________________________________ do hereby bind ourselves on this________________ day of _____________________, 1999 on behalf of M/s________________________________, (the petitioner in W.P No. ________________), to pay to the Government of Pakistan through the Collector of Sales Tax, ______________________an amount of Rs. ________
(Rupees (in words) ___________________________only) being sales tax involved in Writ Petition No. _______________________ filed by M/s.____________________________, in the Honourable __________________________ High Court, ___________________________________ Bench, in terms of its ad- interim order dated __________________________________ passed in C.M. Application No.________________________ relating to the said Writ Petition.2. This unconditional Guarantee shall be binding on us till its discharge in terms of the decision of the case in W.P. No.___________________and we agree and undertake to make payment of the above sum of Sales Tax amounting to Rs.______________________ (Rupees (in words) ____________________________________ ), to the Government of Pakistan within seven days of the receipt of demand from the Collector of Sales Tax or his Sales Tax Officer______________________, duly authorized by him in this behalf, without delay and default, on the happening of any of the following events, whichever is earlier:--
(i) Honourable ____________________ High Court's Order, if any, altering its interim order dated ___________________ in a manner that the amount becomes payable to the Government; or
(ii) Afflux of time on expiry of the prescribed period in terms of clause (4-A) of Article 199 of the Constitution of Pakistan; or
(iii) Honourable _____________________ High Court's judgement in W.P. No._______________________ as and when passed, holding that the sales tax involved in the bank guarantee was payable by the petitioner M/s._________________________
Authorised signature of the Bank
Authorised signature of the Bank
with Official bank Seal.
[Issued by the C.B.R.. Islamabad, under the signature of Mr. Zulfiqar A.Kazmi, Secretary (STP), vide File C. No. 1(18)S(STJ)/99.]