C.No.l/72-STT/96, Dated 19th February, 2000.

I am directed to refer to your letter C.No.PTA-105/99/1867, dated 20.11.1999 on the above subject addressed to Federal Minister for Commerce, Industry and Production, Islamabad and to say that the matter regarding levy of sales tax on raw hide and skins was examined in depth and it is held that "Hides & Skins" (of PCT chapter 41) are not covered by Sl.No.2 of the Sixth Schedule to the Sales Tax Act, 1990, as "Agricultural produce of Pakistan, not subjected to any further process of manufacture". Being not otherwise exempt under any of the provisions of section 13 of the Sales Tax Act, 1990 or under any of the entries in the Sixth Schedule thereof, the supply of "Hide & Skins" are liable to sales tax. The viewpoint of the Central Board of Revenue was also confirmed by Law & Justice Division. 2. Regarding withdrawal of Show Cause Notices issued to some member of Pakistan Tanners Association as referred to in para 5 of the record note (issued by the Ministry of Commerce) of meeting held on 19.8.1999 under the chairman-ship of Additional Secretary Commerce with Pakistan Tanners Association, it is stated that since the matter relates to Customs Notification No.SRO 1319(I)/96 dated…