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

The 1st 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.

The dispute culminating in the suit giving rise to this appeal was triggered by a demand from the 3^rd respondent requiring the 1^st appellant to pay to it Kshs.121,660,538/- in unpaid import VAT for the period between January, 2008 and November, 2013. This amount was subsequently corrected and reduced to Kshs. 43,579,769/-. 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 contravened the principles and framework of public finance under Article 201 of the Constitution; that, to the extent that the aforesaid Section 7 (2) imposes on the 1st appellant import VAT on raw and packaging materials imported for the purpose of manufacturing medicine, it is null and void; that …