GOVERNMENT OF PAKISTAN
MINISTRY OF FINANCE, ECONOMIC AFFAIRS,
STATISTICS & REVENUE
REVENUE DIVISION
*****

Islamabad, the 6th  March, 2002. 

NOTIFICATION
(SALES TAX) 

            S. R. O. 134 (I)/2002. In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, read with sub-section (3A) of section 3 thereof, the Federal Government is pleased to direct that the following further amendments shall be made in the Special Procedure for Ginning Industry Rules, 1996, namely:-

In the aforesaid Rules,

(i)        in the preamble, after the figure “3”  the words and figure “and the first and second provisos to section 45” shall be inserted; and

(ii)         in rule 6, after sub-rule (4), the following new sub-rules shall be added, namely: -

“(5) If the spinning unit or the exporter fails to furnish bank draft for the amount of sales tax payable on the ginned cotton purchased by him from a ginner by the due date specified in sub-rule (1), or claims adjustment or refund of input tax in contravention of sub-rule (3), besides any other action which may be taken against him, the Collector of Sales Tax may issue an order directing all ginners not to deliver or supply ginned cotton to such spinning unit or exporter without receiving prior payment of sales tax from the buyer. If a ginning unit, after receipt of such order makes delivery or supply of ginned cotton to such spinning unit or exporter without prior payment of the amount of sales tax involved, besides any other action which may be taken against him, such ginner shall be liable to pay sales tax, additional tax and penalty thereof, if any, on such supply. 

(6) A person aggrieved by an order of a Collector under sub-rule (5) may file a representation to the Central Board of Revenue. 

(7) Cases involving non-payment or short payment of sales tax by a ginner, a spinning unit or an exporter on supplies of ginned cotton made under the provisions of these rules shall be adjudicated by the officer having jurisdiction in the area where the contravention case is made.” 

[C. No. 3(13)STP/96-Pt.I]

 ( Falak Sher )

Additional Secretary