CUSTOMS HOUSE, MULTAN

C.NO.IV-D(8)CONST/ST/280/92/5272    DATED 6th JUNE, 1994.

To

The Chief (Sales Tax)

Central Board of Revenue,

Islamabad.

SUB:              LEVY OF SALES TAX ON MANGO PULP.

Kindly refer to the above noted subject.

2.         It is submitted that in this Collectorate, various units are producing/manufacturing mango pulp from the fresh mangoes by the processes of cutting, peeling, shelling and packing etc. and supplying the same packed in drums to the various juice manufacturing factories. They were asked to pay the sales tax on mango pulp produced by them consideration that it falls under P.C.T. Heading 20.07 but these units have refused to deposit the sales tax on this item stating that mango pulp is classifiable under P.C.T. Heading 0804.5020 instead of 20.07 and is exempt from payment of sales tax. The management of the units referred a copy of page 55 and 151 of Explanatory Notes to the HS commodity & Coding System showing that the fruits and nuts classifiable in Chapter 8 may be whole, sliced, chopped, shredded, stoned, pulped, grated, peeled or shelled. As against this jams, jellies and marmalades etc. cooked preparations, whether or not containing added sugar or other sweetening matter fall under Heading 20.07. According to them, plain mango pulp is, therefore, classifiable under Chapter 8.

3. The opinion of the officers & staff of this Collectorate differs from each other. Some of them shares the opinion of the manufacturer as mentioned above but others are of the view that Chapter 8 only deals with fruits as they are but if fruits undergo any process such as peeling, cutting, diluting adding of preservatives and packing, then they are classifiable under Heading 20.07.

4. In the light of the above divided opinion, the Board is therefore, requested to guide this Collectorate about the correct classification.

(M. Anwar Ali)

Collector

abcdabcdabcdabcdabc