I am directed to refer to your letter No.nil dated 02.09.1998 on the above subject and to say that such "Reeds" falling under chapter 84 of Pakistan Customs Tariff as are essential components/parts of machinery, and are also identifiable for use with the machinery are covered by sub-para (e) of SRO 582(I)/98, dated 12th June, 1998. 

2. Accordingly, when supplied to registered person for use in manufacturing of sales taxable goods, these "reeds" shall qualify for exemption under S.No.44 of the Sixth Schedule to the Sales Tax Act, 1990, read with SRO 582(I)/98 dated 12.06.1998. However, when supplied to persons not registered under the Sales Tax Act, 1990, or to any person for purposes other than use in the manufacture of sales taxable goods, these reeds shall be liable to the sales tax due. 

3. Commercial import of "reeds" shall be liable to sales tax at import stage and the ruling in the aforesaid paragraphs shall apply to local supply of "reeds" by such commercial importers. [Issued by the CBR, Islamabad under the signature of Mr. Nisar Muhammad, Secretary (STT) addressed to M/s Abid Industries, Karachi. Copy endorsed to all the Collectors of Sales Tax, Collectors of Customs, Collectors of Central Excise and S(ST Ed.) CBR. ]