Exemption from Sales Tax on Goods As Are Manufactured by a Vendor or a Job Worker, with the Material

EXEMPTION FROM SALES TAX ON GOODS AS ARE MANUFACTURED BY A VENDOR OR A JOB WORKER, WITH THE MATERIALS SUPPLIED BY PRINCIPAL 31Notification No. S.R.O. 562(I)/89, dated 3rd June, 1989.---In exercise of the powers conferred by sub-section (1) and (2) of section 7 of the Sales Tax Act, 1951 (III of 1951), the Federal Government is pleased to exempt from the whole of the sales tax leviable thereon such goods as are manufactured by a manufacturer (hereinafter called the "Vendor or job worker"), with material supplied by another person (hereinafter called the Principal), provided that such goods are supplied to, and used, by the Principal for the manufacture or production goods meant for export out of Pakistan and subject to the conditions prescribed herein:-- The Principal shall inform the Collector having jurisdiction in writing of the description of materials that he intends to supply to, and the address of, the Vendor or Job Worker, the description of taxable goods to be manufactured therefrom by the Vendor or Job Worker and the goods in the manufacture or production of which the taxable goods obtained from the Vendor or Job Worker are to be used. After the Vendor or Job Worker has received the raw material and manufactured taxable goods therefrom. he shall enter such goods in the register of production account prescribed under rule 53 of the Central Excise Rules, 1944. The Collector may, after the Principal has executed a bond in the form prescribed under rule 96BBB of the Central Excise Rules, 1944, with such security, bank guarantee or insurance guarantee and on such conditions as the Collector may impose, allow the Principal to receive from the Vendor or Job Worker, without payment of sales tax goods for further processing or manufacture. The Principal shall, for every intended receipt f such taxable good sunder conditions (3), submit to the proper officer an application in the proper form and shall, upon receipt of such goods, make entries in the prescribed registers and books. The Principal receiving such taxable goods without payment of tax for further processing or manufacture in accordance with conditions (3), shall after further processing or manufacture, export them out of Pakistan in accordance with the provisions of rule 13 of the Central Excise Rules, 1944. Explanation I.--For the purpose of this notification, "Vendor" and "Job Worker" means the manufacturer who is engaged in processing or manufacturer of goods from the raw material or semi-finished goods supplied by the Principal to complete a part or whole of the process to enable them to be used in the taxable goods to be manufactured or produced by the Principal. Explanation II.-- For the purposes of this notification,-- "prescribed registers and books" means the registers and books prescribed under the Central Excise Rules, 1944; "proper form" means the form prescribed under the Central Excise Rules, 1944; and "proper officer" has the same meaning as in the Central Excise Rules, 1944. 31. Reported as PTCL 1989 St. 558