NGWANE MILLS APPEALS E40 MILLION JUDGMENT

 MBABANE – It seems Ngwane Mills (Pty) Ltd will not go down without a fight. This is so because the company has noted an appeal where it is challenging the judgment of High Court Judge Cyril Maphanga, who ordered it to pay a sum of E40 million.

It should be noted that in our jurisdiction the noting of an appeal automatically stays the execution of a judgment of the subordinate court.
The full reasons outlining how Ngwane Mills feels the High Court judge allegedly erred both in law and in fact in his finding are contained in the grounds of appeal.   

Judge Maphanga last week dismissed an application where the company was seeking an order to review and set aside the decision of the SRA general commissioner in terms of which he determined that it was liable to pay Valued Added Tax (VAT) together with additional penalties levied thereon  amounting to the sum of E40 109 557.26.

In his judgment, Judge Maphanga stated there was no question that in terms of Section four of the VAT Act the applicant (Ngwane Mills) also had an obligation or at the very least also became liable to pay VAT on the non- declared wheat imports.

Active

The court held that the applicant had an active interest in the goods throughout the process of procurement and as such had a beneficial interest in the merchandise to qualify it as an importer and as such also became liable for the payment of VAT.
Judge Maphanga said the applicant also failed to show that the SRA commission general exceeded his powers in making the determination.

“Ultimately I am persuaded that the wheat imports in question were subject to the regulatory provisions requiring due entry to be made upon importation on account of the goods being a restricted product for which no permit exempting such imports from mandatory statutory requirements for declaration,” said Judge Maphanga.

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