Law: Sales Tax Act, 1990

Section: 10

Sales Tax Act (VII of 1990)---S.10---C.B.R. Letter C. No.2(7) STP/99, dated 22-5-2001---Excise amount to be refunded---Variance in blend and description of account declared/claimed and test report---Rejection of refund being illegal and inadmissible---Validity---Sales Tax Department not being satisfied with the blend and description of count approached the customs for test report which showed variation---Description declared was 35x35 PC 80x20 PC whereas after the test the ascertained value was 40x36 and 62x38---Description declared in another shipping bill was 30x30 PC 80x20% PC whereas the ascertained value was 35x34 PC 63x67 PC---Central Board of Revenue clarified vide letter C.No.2(7)STP/99, dated 22-5-2001 variation up to 3% - + count variation was admissible, whereas count variation in this case was beyond the permissible limit---Rejection of refund to the extent of two shipping bills was justified but with respect to third shipping bill, the ascertained value was within the permissible range---Rejection of refund to that extent was unjustified and the appellant was entitled to the refund claimed pertaining to such shipping bill. JUDGMENT ABDUS SALAM KHAWAR, MEMBER (JUDICIAL)/CHAIRMAN.---This appeal is directed against Order-in-Appeal No.255 of 2004, dated 18-5-2004 (dispatched on 5-11-2004) passed by the respondent No.1 whereby the refund claim of Rs.4,60,244 pertaining to the month of October, 2000 due to the blend ratio. 2. Brief facts of the case relevant to this appeal are that on the scrutiny of the record by the Sales Tax Department revealed that the appellant had declared blend of poly/cotton as 80x20% in shipping bill whereas normally said blend is not produced by spinning mills. Consequently the sales tax department approached Customs Department for test report of the shipping bills furnished. The result of this test was as follows:--- S. No S/B No. & Date Description declared Ascertained 1. 5373-6-10-2000 35x35 PC 80:20% PC 40x36 PC 62:38% 2. 5713-13-10-2000 35x35 PC 80:20% PC 36x36 PC 68:32% 3. 6111-25-10-2000 30x30 PC 80:20% PC 35x34 PC 63.37% 3. Thus the result revealed that blend and description of account declared and claimed did not…

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