020328

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020328

GOVERNMENT OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE (SALES TAX WING)
SALES TAX RULING/INSTRUCTION NO. 21/2002
C.No.2(77)/STP/95(Vol-II)
Islamabad, the 28^th March, 2002

To,
The Collector,
Sales Tax & Central Excise, Lahore.

Subject:

SALES TAX AUDIT OF M/S PEARL CONTINENTAL

I am directed to refer to your letter C.No. Audit-V/AMC/ST&CE/111/342, dated 26.01.2002 on the subject cited above and say that adjustment of input tax on vehicles is specifically barred by SRO 578(I)/98 dated 12.6.1998. Vehicles do not constitute stock-in-trade, either under the definition given by Board vide letter of even number dated 19.10.999 (copy enclosed) or under the Supreme Court’s judgement in Civil Appeal No. 929 of 1995 (M/s Attock Cement Co. Limited vs. Collector of Customs, Quetta and other (copy of relevant portion enclosed). The Board had ruled that goods and commodities which are purchased for sale or for conversion into finished products are stock-in-made and the Supreme Court added that plant and machinery are also stock-in-trade while accessories and spare parts are not.

2. In view of the above, the vehicles in question do not fall under wither of the categories, and therefore, do not constitute stock-in-trade.

Encl: (As above)

Sd/-
(DR. ASHFAQ AHMED TUNIO)
Secretary (ST-L&P)

GOVERNMENT OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE, (SALES TAX WING)
Islamabad, the 19^th October, 1999
No.2(77)STP/95(Notes)

The Collector of Sales Tax,
56-A, Shadman Market, Lahore.

SUBJECT:

LEGAL ANOMALIES/CLARIFICATION

I am directed to refer to your letter C.No.IV(2)ST/43/98/288, dated 29.06.1998, on the subject cited above and the reply to your suggestions/queries as under:-
A. With respect to situation pointed out in para (i) of your letter, section 8 of the Act has been suitably amended by adding sub-section (5) to cover such situations.

B. As for as the term "Stock in Trade" is concerned, the Board reiterates its meaning, as already conveyed, as under:-
"Stock in trade" shall mean goods and commodities which are purchased for sale or for conversion into finished products.

Sd/-
(MUHAMMAD TAHIR)
Secretary (STP)

Copy alongwith the copy of the letter to the Collector of Sales Tax Karachi (West)/(East) Hub (Baluchistan)/Hyderabad/Multan/Faisalabad/Gujranwala/Rawalpindi/Peshawar/Mirpur(AJ&K)

Sd/-
(MUHAMMAD TAHIR)
Secretary (STP)

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