Law: Sales Tax Act, 1990

Section: 3

NOTIFICATION NO. SRO 324(I)/94 DATED 19.04.1994--Needles had not been declared as "Drug" in SRO 324(I)/94 dated 19.04.1994, hence the same were not exempt from sales tax.--See Sixth Schedule--Sr. No. 13 of the Sales Tax Act, 1990. SALES TAX ACT, 1990--Section 3B---Sales Tax was paid on Disposable Syringes inadvertently, when these were exempted. Increase in prices of Disposable Syringes were taken place from 18.09.1999 (after the withdrawal of exemption). Data provided did not prove that the incidence of sales tax was passed on to the consumers. The Department has failed to prove that the incidence of tax was passed on to the consumers. Hence refund allowed.--- Sales tax refund claim of the appellant was for the period of March 99 to 15.08.99 when exemption from sales tax was available to Disposable Syringes under item No. 13 of the Sixth Schedule to the Sales Tax Act, 1990 read with SRO 1199(I)/96, dated 22.10.1996 and further read with SRO 324(I)/94 dated 19.04.1994. Vide SRO 922(I)/99 dated 16.08.1999 Syringes in question were classifiable under Heading 90.18 of the First Schedule to the Customs Act, 1969 and thus these were no more exempt from payment of sales tax w.e.f. 16.08.1999. The appellants have claimed refund of sales tax inadvertently paid on Disposable Syringes during the period of March'99 to 15.08.1999, when these were exempt from payment of sales tax in the terms of Sr. No. 13 of Sixth Schedule to the Sales Tax Act, 1990. Report dated 30.01.2003 of Collector Sales Tax, Lahore as reproduced by the adjudicating officer at para-5 of the impugned order revealed that increase in prices from 8% to 11% on Disposable Syringes of different capacities took place from 16.08.1999 (after withdrawal of sales tax exemption vide SRO 922(I)/99 dated 16.08.1999). This was perfectly in order but the issue relates to the period prior to 16.08.1999 and the aforementioned data did not prove that incidence of sales tax was passed on to the consumers between the period from March 99 to 15.08.1999. Hence order of the adjudicating officer ordering rejection of refund claim (amounting to Rs. 12,648,651/- (Rs. 15,701,390/- (-) Rs. 3052,739/-)) is set aside and Collector…

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