Introduction:
The newly issued Sales Tax General Order No. 144 of 2018 dated July 12, 2018 has suppressed the sales tax General Order No. 119 of 2017 dated August 02, 2017 in terms of sub rule (2C) of Rule 58H of the Sales Tax Special Procedures Rules, 2007.
Brief Commentary
The above mentioned Order describes the procedure to be followed for adjustment of sales tax paid at import stage on the specified categories of remeltable iron and steel scrap. This Oder is applicable ONLY for Steel Mills which are not operated by sugar mills or other persons using self-generated electricity under rule 58H of the said Rules and steel melting and rerolling units which have opted to pay sales tax on ad valorem basis
under rule 58Ma ibid.
Applicability and Admissibility
Said order is explained as under:
Quote “The adjustment procedure under sub-rule (2C) of rule 58H of the Sales Tax Special Procedure Rules, 2007 shall be applicable only to such steel melting units (hereinafter referred to as “entitled steel melters”) which are paying sales tax through their electricity bills in the manner prescribed in sub-rule (2) of rule 58H ibid. Steel mills operated by sugar mills or other persons using self-generated electricity under rule 58H of the said Rules and steel melting and rerolling units which have opted to pay sales tax on ad valorem basis under rule 58Ma ibid shall not be entitled to this adjustment procedure. Adjustment shall be admissible allowed only on import of re-meltable iron and steel scrap under PCT Headings 7204.3000,7204.4100 and 7204.4990 (hereinafter referred to as “specified scrap categories”). The adjustment shall be allowed only to the extent of sales tax, paid at import stage on the specified scrap categories allowing 5% wastage” Unquote
Please click below to read the original Order:
20187131073548369STGO144of2018
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