Exempt Additional Tax Under Section 34 and Penalties Under Section 33 Of Said Act, Payable On Princi

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE AND ECONOMIC AFFAIRS Islamabad, the 12th June, 1998. NOTIFICATION (SALES TAX) S.R.O.575 (I)/98.- In exercise of the powers conferred by clause (a) of sub- section (2) of section 13 of the Sales Tax Act, 1990, the Federal Government is pleased to exempt additional tax under section 34 and penalties under section 33 of the said Act, payable on the principal amount of tax due if the said principal amount (as accrued on or before the 31st May, 1998) is paid, during the period from the date of this notification up to the 30th June, 1998, by the following classes of registered persons, namely:- (i) persons falling under various fixed sales tax schemes including old fixed sales tax cases of steel sector; (ii) importers registered on and after 1st January, 1998; (iii) steel melters and steel re-rollers who did not pay sales tax as per the minimum benchmark of consumption of electricity units fixed vide Central Board of Revenue letters C.Nos.4/85-STB/97, dated the 18th September, 1997, dated the 21st October, 1997, and dated the 25th October, 1997, C. No. 4/93-STB/97, dated the 21st October, 1997 and C.No.4/20-STB/98 dated the 19th May, 1998; (iv) distributors, wholesalers and retailers of mild steel products whose supplies became taxable with effect from the 1st July, 1997, in terms of S.No.33(iii) of the then Sixth Schedule to the Sales Tax Act, 1990;

(v) manufacturers and producers who incorrectly claimed input tax under Notification No. S.R.O. 1307(I)/97, dated the 20th December, 1997; (vi) persons who made incorrect and inadmissible input tax adjustments or have claimed or received incorrect and inadmissible refunds; (vii) manufacturers and suppliers of knitted or woven fabrics, garments and made ups and other taxable goods who failed to pay the tax due; and (vii) persons against whom arrears of tax are outstanding in terms of an audit report, demand notice, assessment order or adjudication order. 2. This notification shall also apply to cases pending in appeal under sections 45 and 46 of the Act. However, if the dues are held to be not payable in view of the appellate order, the amount so paid in terms of this notification shall be refunded immediately. 3. If the whole of the dues of principal amount of tax is paid by a registered person to the satisfaction of the Collector in terms of this notification, he shall not be prosecuted under section 37A and 37C of the Act and the offence shall be compounded under sub-section (4) of section 37A. 4. This notification shall not entitle any registered person to claim refund of any tax, additional tax or penalty already paid. C.No.3(16)STP/98