Law: Sales Tax Act, 1990

Section: 3,8,77

Kafeel Ahmed Abbasi, D.A.G. along with Hussain Bohra, Assistant Attorney General. Sales Tax Act (VII of 1990)---Ss. 77, 3 8-Sales Tax General Order No. 105/2019 dated 13.12.2019-Sales Tax Liability-Adjustment/refund of sales tax paid under special procedures-Scope-Petitioner, an importer of palm oil, sought input tax adjustment for period ending 30.06.2019 in respect of stocks available with it, after introduction of new sales tax regime on import of oil, effective from 01.07.2019-Held, that Sales Tax General Order No. 105/2019 dated 13.12.2019 provided clarity that after introduction of new regime, goods which had already been subject to sales tax under previous regime and were in stock till 30.09.2019 and were to be supplied after effective date of new regime, would be subjected to input tax adjustment under standard regime to save such goods from double / increased incidence of sales tax - High Court observed that several sectors had been accommodated by the Department but importers of edible oil were not given equal fair opportunity and directed that stud Spies Tax General Order was to be applied in true spirit in case of petitioner-Constitutional petition was disposed of, accordingly. ORDER: Through this petition, the petitioner sought input sales tax adjustment for the period ending 30.6.2019 in respect of the stocks available with them as the new standard regime of sales tax was introduced with effect from 01.7.2019. We have heard learned counsel and perused the record. Petitioner being an importer of palm oil was subjected to a special regime until 30.6.2019 as far as the liability of sales tax is concerned. The sales tax was paid at the time of import as final sales tax liability. Subsequent to this special regime, Finance Act, 2019 was introduced which brought various changes in the income tax and sales tax laws and one of the feature was sales tax in VAT mode on edible oil i.e. input tax is available for adjustment against output tax. Thus the two regimes could be reconciled if the sales tax adjustment is provided in respect of the stock which is already available as imported prior to 30.6.2019. The earlier regime was introduced in April 2006, which…

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