Re-payment or refund of Sales Tax of oil seeds paid on import stage to solvent extractors

Government of Pakistan (Revenue Division) Central Board of Revenue Sales Tax Wing ***** Islamabad, the 24th May, 2004. NOTIFICATION (SALES TAX) S.R.O 335 (I)/2004.- WHEREAS during the budget for the financial year 2003-04, imported oil seeds were subjected to sales tax @ 20%, the oil extracted therefrom was subjected to sales tax @ 15% on local supply, while the meal extracted from oil-seed remained exempt from payment of sales tax under the Sixth Schedule to the Sales Tax Act, 1990. Hence, in terms of section 7 and clause (a) of sub-section (1) of section 8 of the said Act, read with the Apportionment of Input Tax Rules, 1996, the refund or adjustment of input tax was admissible to the extent of taxable supplies (oil) only; AND whereas the solvent extractors thus raised the issue that owing to higher inputs and lesser outputs, they could not adjust the entire amount of sales tax paid by them at import stage. It was, therefore, decided that the Government would share the burden of sales tax on meal to the extent of half of the increased impact of sales tax on meal, which is worked out to be equivalent to 10.5% of the average amount of sales tax paid at import stage. This relief would be in addition to any sales tax refund or carry forward that may accrue due to 20% sales tax chargeable on imported oil-seeds and 15% on the local supply of oil extracted therefrom; NOW, THEREFORE, in exercise of the powers conferred by section 61 of the Sales Tax Act, 1990, the Central Board of Revenue is pleased to allow re-payment or refund of sales tax to the extent of 10.5% of the amount of tax per metric ton of oil seeds paid at the import stage to solvent extractors, subject to following conditions, namely: (1) The refund or relief under this notification shall only be extended to the imported oil-seeds, for which bill of entry has been filed on or after the 7th June, 2003; (2) the claimant shall file a refund claim with the concerned Collectorate where he is registered for sales tax purposes along with copy of sales tax return for the relevant tax period to which the claim is related; and (3) the claimant or importer should produce documentary evidence i.e., the bill of entry, duly verified from the concerned Customs station, in support of his claim. ___________________________________________________________________________________________________________ [ C. No. 4(57)STB/97 ] (Dr. Muhammad Zubair) Secretary (STR & C)