20000305

Jewellery exporter granted ST exemption

SOHAIL SARFRAZ

ISLAMABAD: The Central Board of Revenue (CBR) has allowed a jewellery export firm to take delivery of imported goods without the payment of sales tax, it was learnt on Saturday.

Nau Rattan Exports, of Karachi, has been given permission to import raw material against the export of gold jewellery without the payment of sales tax.

In this case, the CBR has used the powers conferred upon it under Section 60 of the Sales Tax Act 1990.

The exemption has been given subject to the following conditions.

"The importer is registered under the Sales Tax Act, 1990; the goods shall be cleared only through the Collectorate of Customs (Appraisement) Karachi; the goods are otherwise (for the purpose of exemption of customs duty) covered under notification SRO No. 592 (I)/97 issued on August 7, 1997.

"The use and consumption of the goods for the purpose of export shall be duly accounted for in terms of Export Promotion Bureau's (EPB) notification SRO (KE)/96 of November 22, 1996.

"The importer shall at the time of clearance of goods, furnish an undertaking to the satisfaction of the Collector of Customs (Appraisement), Karachi for the accountal of the goods in terms of EBP's mentioned notification, and forthwith payment of sales tax in case of any violation or default.

"Any breach or violation of this order shall attract the penal provisions of the Sales Tax Act, 1990.

"All details of the clearance of the goods and the subsequent actions shall be intimated to the Collector of Sales Tax in whose jurisdiction the importer is registered."

Section 60 of the Sales Tax Act 1990 reads as follows: "Powers to deliver certain goods without payment of tax: Subject to the conditions, limitations or restrictions as it thinks fit to impose, the federal government may authorize the import of goods or a class of goods, without payment of the whole or any part of the tax payable thereon to the following persons namely, registered importers importing goods temporarily with a view to subsequent exportation and registered manufacturer-cum-exporters who import raw material and intermediary product for further manufacture of goods meant for export."

The CBR has allowed Nau Rattan Exports, Karachi, to take delivery of goods imported under IGM No 96/2000 of January 19, 2000, Index No 171 and B/L No 34005-569055 and B/E Machine No 66109 of January 26, 2000 without payment of sales tax.