Law: Sales Tax Act, 1990

Section: 3, 13 ,Sixth Schedule, Serial No.32

Sales Tax Act (VII of 1990)--- ----Ss. 3, 13 & Sixth Schedule, Serial No.32---Supplies of goods---Manufacturing of printing services---Sales tax and withholding sales tax, liability of---Scope--Whether the manufacturing of printing services used in the supplies of goods which are exempt in terms of Sixth Schedule to the Sales Tax Act, 1990, are liable to sales tax and withholding sales tax---Held: Record transpires that during the assessment proceedings, the appellant /registered person had conceded the allegation of nonpayment of sales tax amount, however, based the reason of non-payment on the dispute between the KP Revenue Authority and FBR for non-payment of the sales tax---The supplies of books to the KPTBB are exempt from sales tax in terms of S. 13 of the Sales Tax Act, 1990, read with serial No.32 of the Sixth Schedule to the Sales Tax Act, 1990---It is also evident that KPTTB shall make payment to the appellant without withholding sales tax---It is also clear that printing of the books falls within manufacturing as provided in the Sales Tax Act, 1990, therefore, the same does not fall within the scope of Sales Tax Act, 1990---Since the supplies of books are exempt from sales tax and the printing of books falls within manufacturing and the same does not fall within the scope of the Sales Tax Act, 1990, hence, the appellant /registered person was not liable to pay sales tax on the same---Appellate Tribunal Inland Revenue vacated the sales tax demand upon the appellant/registered person for the relevant months, resulting into vacation of the orders passed by the two forums below---Appeal, filed by the registered person was allowed accordingly. Messrs Spinzer Enterprises (Pvt.) Ltd.'s case Writ Petition No.4254-P of 2015 and GST Reference No.11-P of 2013 ref. ORDER DR. SHAH KHAN, ACCOUNTANT MEMBER.---The above titled appeal has been filed by the appellant registered person against the appellate Order, in-Appeal No.259/2018, dated 23.04.2018 passed by Learned Commissioner Inland Revenue (Appeals) Peshawar, whereby appeal was partially accepted. Briefly stated facts of the case are that during the scrutiny of monthly withholding sales tax statement…