[2024] KETAT 149 (KLR)
The Tribunal found that the respondent had unequivocally admitted liability for the VAT refund claimed by the appellant for March 2021, both in writing and during the hearing. There was no longer any substantive dispute for the Tribunal to resolve. The Tribunal held that the respondent's prior rejection of the...
Source-derived case information.
- Citation
- [2024] KETAT 149 (KLR)
- Parties
- Appellant: Kenya Cuttings Limited; Respondent: Commissioner Of Domestic Taxes
- Court
- Tax Appeal Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tax Appeal 1000 of 2022
- Procedural Posture
- Tax Appeal / Judgment
- Outcome
- appeal allowed
- Judges
- Grace Mukuha, E Komolo, Jephthah Njagi, T Vikiru, G Ogaga
- Legal Topics
- Vat Refunds, Tax Administration, Tax Appeals
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Cuttings Limited
Appellant
Commissioner Of Domestic Taxes
Respondent
Procedural Posture
Tax Appeal / Judgment
Legal Issues
- 1 Whether the appellant is entitled to a VAT refund for March 2021 as claimed in the appeal.
- 2 Whether the respondent's rejection of the refund claim was valid in light of its subsequent admission of liability.
Ratio Decidendi
The Tribunal found that the respondent had unequivocally admitted liability for the VAT refund claimed by the appellant for March 2021, both in writing and during the hearing. There was no longer any substantive dispute for the Tribunal to resolve. The Tribunal held that the respondent's prior rejection of the refund claim was invalid in light of its subsequent admission, and therefore the appeal was allowed. The orders rejecting the refund claim were set aside, and each party was ordered to bear its own costs.
Court Disposition
appeal allowed
Orders
- The appeal is allowed as per the respondent's admission letter dated 15th February 2023.
- The orders of rejection of refund claim issued on 31st July 2022 are set aside.
Full Case Text
Judgment text and source record
22 paragraphs
Kenya Cuttings Limited v Commissioner of Domestic Taxes (Tax Appeal 1000 of 2022) [2024] KETAT 149 (KLR) (9 February 2024) (Judgment)
Neutral citation: [2024] KETAT 149 (KLR)
Republic of Kenya
In the Tax Appeal Tribunal
Tax Appeal 1000 of 2022
Grace Mukuha, Chair, E Komolo, Jephthah Njagi, T Vikiru & G Ogaga, Members
February 9, 2024
Between
Kenya Cuttings Limited
Appellant
and
Commissioner Of Domestic Taxes
Respondent
Judgment
Background 1. The Appellant is a limited liability company duly incorporated in Kenya. The Appellant’s principal business activity is to produce ornamental plant cuttings for export to the Netherlands.
2. The Respondent is a principal officer appointed under and in accordance with Section 13 of the Kenya Revenue Authority Act, and the Kenya Revenue Authority is charged with the responsibility of among others, assessment, collection, accounting and the general administration of tax revenue on behalf of the Government of Kenya.
3. This is a matter that should have been withdrawn by the Appellant or both parties would have had the wisdom and grace to withdraw it. The Respondent admitted in its letter dated 15th February 2023 that the amount being claimed in the Appeal was refundable, and at the hearing of 6th September 2023 the Respondent confirmed that there was nothing left in the matter for the Tribunal to determine.
4. The Appellant has clearly stated in its Supplementary Statement of Facts in Paragraph 12 that part of the refund claims allowed by the Respondent in the aforesaid letter related to VAT refund claims made between January 2021 and June 2021 which are part of the subject matter of this Appeal whose sole claim was the refund claim for VAT for March 2021.
5. It is incredulous to note that the Respondent even had the audacity and time to do submissions in the matter denying liability for the claim.
Final Decision 6. The upshot of the above is that the Tribunal holds that:a.The Appeal be and is hereby allowed as per the Respondent’s admission letter dated 15th February 2023. b.The orders of rejection of refund claim issued on 31st July 2022, are hereby set aside.c.Each party to bear its own costs.
7. It is so ordered.
DATED AND DELIVERED AT NAIROBI THIS 9TH DAY OF FEBRUARY, 2024GRACE MUKUHA -CHAIRPERSONDR. ERICK KOMOLO -MEMBERJEPHTHAH NJAGI - MEMBERTIMOTHY VIKIRU - MEMBERGLORIA OGAGA - MEMBER