ISLAMABAD, March 7: The Central Board of Revenue (CBR) on Thursday notified new sub rules for ginning industry by amending the special procedure for ginning industry rules 1996.

Under the new rules, the collector of sales tax may issue an order directing all ginners not to deliver or supply ginned cotton to such spinning unit or exporter without receiving prior payment of sales tax from the buyer.

While this action will be taken in case the spinning unit or the exporter fails to furnish bank draft for the amount of sales tax payable on the ginned cotton purchased by him from a ginner by the due date specified in sub-rule (1) or claims adjustment or refund of input tax in contravention of sub-rule(3), besides any other action, which may be taken against him.

And those ginners will be liable to pay sales tax, additional tax and penalty in case after receipt of such order makes delivery or supply of ginned cotton to such spinning unit or exporter without prior payment of the amount of sales tax involved, besides any other action take against them.

Under the rules, a person aggrieved by an order of a collector under sub-rule(5) may file a representation to CBR.

Cases involving non-payment or short payment of sales tax by a ginner, a spinning unit or an exporter on supplies of ginned cotton made under the provisions of these rules shall be adjudicated by the officer having jurisdiction in the area where the contravention case was made.