Airkenya Express Limited v Commissioner of Customs & Border Control (Tax Appeal 170 of 2020) [2021] KETAT 1 (KLR) (16 July 2021) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 1
- Citation
- [2021] KETAT 1 (KLR)
- Decided
- 16 July 2021
The Tribunal found that the Respondent did not err in demanding IDF fees from the Appellant, as the exemption from entry of aircraft parts in the Import Declaration Form did not imply exemption from payment of Import Declaration fees.
Facts
The Appellant, Airkenya Express Limited, was assessed Kshs. 14,330,770 for import declaration fees (IDF) for the period January 2015 to December 2019. The Appellant appealed the assessment, arguing that they were exempt from the import declaration process due to the exemption in Regulation 38(A)(3) of the Customs and Excise Regulations.
Issues
- Whether the Respondent erred in demanding IDF fees for the period preceding 20th September 2016
- Whether the Respondent erred in its computation of IDF payable by the Appellant
- Whether the Respondent erred in assessing penalties for unpaid IDF fees from the Appellant
Reasoning
The Tribunal ruled that the exemption from entry of aircraft parts in the Import Declaration Form was a procedural exemption and not a payment exemption. The Tribunal also held that the provisions of Regulation 38A of the Customs and Excise Act continued to be in force until the coming into force of the Miscellaneous Fees and Levies Act 2016.
Outcome
The Appeal is hereby dismissed.
Orders
- The Respondent’s objection decision dated 24th March 2020 is hereby upheld.
- Each party to bears its costs.
Authorities cited
Legislation (3)
- Customs and Excise Act Cap 472
- Miscellaneous Fees and Levies Act 2016
- Constitution of Kenya, 2010
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