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021104

GOVERNMENT OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE
SALES TAX RULING INSTRUCTION NO. 66/2002.
(SALES TAX WING)
C. No. 1(98) STT/2000
Islamabad, the 4th November, 2002.

1. The Collector,
Collectorate of Sales Tax & Central Excise,
Peshawar/Rawalpindi/Lahore.

2. The Collector,
Collectorate of Customs, Sales Tax & Central Excise,
Gujranwala/Multan/Hyderabad/Quetta.

3. The Collector,
Collectorate of Sales Tax & Central Excise (East/West),
Karachi.

4. The Collector,
Collectorate of Sales Tax,
Faisalabad.

5. The Collector,
Collectorate of Customs (Appraisement/Preventive)
Customs House,
Karachi.

6. The Collector,
Collectorate of Customs,
Peshawar/ Rawalpindi/Lahore.

SUBJECT:

SALES TAX ON COMPUTER PRINTING RIBBIONS – CLARIFICATION REGARDING.

I am directed to refer to CBR’s letter C. No. 1(98) STT/2000, dated 31-01-2002 and to say that a question has been raised whether computer printer ribbions are exempted from sales tax. In the said letter CBR had earlier given affirmative opinion. However, on the receipt of new arguments from the local manufacturers of such ribbons, CBR has re-examined the issue of chargeability of sales tax on computer printer ribbions. In this regard, CBR has been pleased to observe as follows: -

(i) GST exemption available under S. No. 45 of the Sixth Schedule to the Sales Tax Act, 1990 is restricted to “ computer hardware including lap tops, note books, PCs, main frame and their peripheral units and parts thereof.

(ii) Computer hardware is classified under PCT heading 84.71. Printers useable with computers are also classifiable under this heading. Parts suitable for use solely or principally with machines of PCT heading 84.71 are classified under PCT heading 84.73.

(iii) The word “accessory” has not been used in S. No. 45 of the said Schedule, nor any PCT heading has been mentioned against this entry,. Rather the words “respective headings” have been used.

(iv) Typewriter ribbions and similar other ribbions are classifiable under PCT heading 96.12. Computer printer ribbions are also classifiable in this heading. Under, clause (q) of Note 1 of Section XVI of H. S. Code, typewriters or similar ribbions have been excluded. Under Note 2 of the said Section, ribbons have also been excluded from the category of parts falling under PCT heading 84.73. Thus, ribbons, even if they are exclusively useable with computer printers, are not parts of computer printers.

(V) Sixth Schedule is a substantive part of the statute. Hence the PCT heading mentioned in column (3) of the Schedule also carry statutory value. The words “respective headings” are, therefore, to be interpreted strictly in accordance with the classification principles of H.S. Code. The expression “parts” used in S.No. 45 of the Sixth Schedule is to be interpreted with reference to Note 2 Section XVI of Pakistan Customs Tariff and ribbons are not parts of the printers useable with computers because such ribbons are not classified under PCT heading 84.73.

2. In the view of the above observations, the Central Board of Revenue is pleased to revise its earlier opinion and direct that any ruling/clarification issued in respect of ribbons even if useable with computer printers stands modified to the extent that computer printer ribbons are not entitled to sales tax exemption under S.No. 45 of the 6th Schedule to the Sales Tax Act, 1990.

3. This ruling carries immediate effect.

(Iftikhar Qutab)
Chief (Sales Tax-III)

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