PHARMACEUTICAL MANUFACTURING (K) CO LTD, KUMAR SHAH, UTAMCHAND G. SHAH, CHRISTINE D' SOUZA V. COMMISSIONER GENERAL OF KENYA REVENUE AUTHORITY, ATTORNEY GENERAL & COMMISSIONER OF CUSTOMS SERVICES

JUDGMENT OF THE COURT

On 3^rd March, 2017 we rendered our decision in this appeal and reserved the reasons to today, the 10^th March, 2017. These are therefore our reasons for dismissing this appeal with costs.

The 1^st appellant is a limited liability company engaged in pharmaceutical manufacturing business. The 2^nd, 3^rd and 4^th appellants are, respectively its shareholder, Managing Director, and Administrative Manager.

Following a demand notice from the Commissioner of Customs Services (the 3^rd respondent) requiring the 1^st appellant to pay to it Kshs.121,660,538/= in unpaid import Value Added Tax (VAT) for the period between January, 2008 and November, 2013, the appellants petitioned the High Court for protection claiming that the 1^st and 2^nd Schedules to Sections 2 and 7 (2) of the VAT Act, 2013 (Chapter 476 of Laws of Kenya) contravened Article 201 of the Constitution on the principles and framework of public finance; that to the extent that the aforesaid Section 7 (2) imposes on the 1…