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Sui Southern Gas Company (SSGC) has clarified that the SSGC has already discharged its legal obligations under Sales Tax Law as per directives of Sindh High Court and the amount not deposited by CNG stations in violation of Sindh High Court's directives shall be collected by Federal Board of Revenue (FBR) directly from the CNG stations.
According to a clarification issued by the SSGC here on Friday, Sales Tax Law was amended vide Sales Tax (Amendment) Ordinance 2014, thereby requiring that in case of supply of natural gas to CNG stations, Gas Transmission and Distribution Company ie SSGC shall charge Sales Tax from CNG Stations at the rate of 17 percent of value of supply as notified by the Board. FBR vide SRO 236(I)/2014 dated March 31, 2014 notified that value of supply shall be the 'Total Value Added Cost' of CNG as notified by OGRA ie retail price to be charged by CNG stations from its customers.
Accordingly SSGC charged Sales Tax @ 17 percent of value of supply notified by OGRA from time to time, from the billing month of April 2014. However, CNG stations used to approach Sindh High Court each month and Sindh High Court issued the following directions:
"SSGC shall revise its Gas Bill and charge Sales Tax as per past practice ie OGRA's notified tariff for the CNG stations instead of CNG station's retail sales price." The differential amount of Sales Tax between Revised and Old Gas Bill had to be deposited by the petitioner ie CNG stations with Nazir of Sindh High Court, as per interim orders passed by the Court.
In adherence to the above directions/Court Order, SSGC issued revised bills by charging Sales Tax as per past practice. This Sales Tax amount was regularly deposited through Sales Tax returns in Government's treasury in the manner prescribed under Sales Tax Act. After the dismissal of 43 petitions by Sindh High Court on October 6, 2015, FBR informed SSGC that the amount deposited by CNG stations with Nazir is just a fraction of the amount which was required to be deposited by CNG stations.
Now, FBR is insisting SSGC to collect the Sales Tax amount not deposited by CNG stations with Nazir and deposit the same in FBR. However, since SSGC has already discharged its legal obligations under Sales Tax Law as per directives of Sindh High Court, therefore the amount not deposited by CNG stations in violation of Sindh High Court's directives shall be collected by FBR directly from the CNG stations.
It is pertinent to mention here that the disputed / remaining amount being claimed by LTU was never deposited with SSGC but it was deposited with Nazir of Sindh High Court as per High Court's specific interim order. In light of the above submission, it is evident that SSGC is not liable to collect the disputed amount after the Judgement passed by the Court, dismissing 43 petitions on the subject, SSGC added.-PR

Copyright Business Recorder, 2015

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