DATED 10TH OCTOBER,1994

SUBJECT:- REMOVAL OF HARDSHIP—LEVY, COLLECTION AND ADJUSTMENT OF SALES TAX ON IRON.

The Board, cognizant of the problems being faced by manufacturers of iron and steel welded pipes (whether galvanized or not) in claiming credit of input tax for want of clearance documents, hereby prescribes the following procedure for facilitation of manufacturers:--

(i) Input tax paid on the purchase of raw materials at earlier stages can be refunded/adjusted against tax liability at the finished stage on production or evidence to the effect that input tax was actually paid on raw materials at earlier stages.

(ii) As regards the manufacturers who cannot produce Bill of Entry relating to import of zinc or clearance document issued by Pakistan Steel they are allowed to seek credit for input tax on the basis of the price of the raw materials as notified by Pakistan Steel during the relevant period.

(iii) In case of zinc, the input tax may be worked out on the basis of the import trade price (ITP) of zinc as notified by the Controller of Customs valuation during the relevant period.

(iv) The manufacturers shall keep prescribed record of the purchased products indicating the name and address of the seller, date of purchase, quantity and value of raw materials.

(v) The value declared by the manufacturers should ordinarily be accepted unless there is evidentiary proof to the contrary.

(vi) The manufacturer may clear the goods at any time of the day and night.

(vii) Copies of prescribed clearance documents be sent to concerned Circle Office within a week.