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Sales Tax Ruling /
Instruction No. 20 / 2003
GOVERNMENT OF PAKISTAN
REVENUE DIVISION
CENTRAL BOARD OF REVENUE
(SALES TAX WING)
Islamabad, the 15th August, 2003.
- C.
No. 16(4)ST/82-Pt
1. The Collector,
Collectorate of Sales Tax & Central Excise,
(East / West) Karachi/ Rawalpindi/Peshawar/Gujranwala/Lahore.
2. The Collector,
Collectorate of Customs, Sales Tax and Central Excise, Quetta/Hyderabad/Multan.
3. The Collector,
Collectorate of Sales Tax,
Faisalabad
4. The Collector,
Large Tax payer Unit,
Karachi.
SUBJECT:- CHARGEABILITY OF SALES TAX ON MURABBAJAAT
I am directed to say that a question has been raised as to whether sales tax is leviable on “Murabbajaat” sold in packed / bottled form in retail sale or it is an unani medicine classifiable under PCT heading 30.03 of the Ist Schedule to the Customs Act, 1969, and, therefore, exempt from payment of sales tax.
2. The matter has been examined in the Board in consultation with Collector of Sales Tax & Central Excise, Lahore. “Murabbajaat” in question are actually fruits preserved with additives like sugar etc. They are usually first boiled and then preserved with the help of sugar. They are meant for human consumption as energizers. Specimens obtained from the market show that the containers of “Murabbajaat” indicate the word “preserved” including fruit, sugar and preservatives as ingredients. They are available for sale without prescription in bakeries, general stores etc for use as a part of food. The contention that they are classifiable under PCT heading 30.03 of the
1st Schedule to the Customs Act, 1969, is not tenable as the said heading includes medicaments consisting of two or more constituents which have been mixed together for
threpeutic or prophylaetic uses, not put up in measured doses or in form or packing for retail sale. “Murabbajaat” under reference are manufactured for retail sale and, therefore, do not qualify to be classified under heading 30.03 of the
1st Schedule to the Customs Act, 1969. It is, therefore, ruled that “Murabbajaat” sold in packed / bottled form in retail sale / bulk packing are classifiable under chapter 20 of the
1st Schedule to the Customs Act, 1969, and, therefore, chargeable to sales tax.
(Manzoor Hussain Memon)
Secretary (STT)
Tel: 9204043
Copy to:-
Mr. Khawaja Akhtar Masud, Chief Executive, Khawaja & Co., H/1381, Akbari
Mandi, Lahore.
(Manzoor Hussain Memon)
Secretary (STT)
