Kenya Cuttings Limited v Commissioner of Domestic Taxes [2024] KETAT 149 (KLR)

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 This is a matter that should have been withdrawn by the Appellant or both parties would have had the wisdom and grace to withdraw it.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