Wakilii

M s Rabo Enterprises (U) Ltd and Another v Commissioner General Uganda Revenue Authority (Civil Appeal No 55 of 2003)

Court of Appeal · [2004] UGCA 54 · 2004 Appeal Allowed ✦ AI-generated summary ↓ Download
Jurisdiction
Uganda
Case Type
Civil appeal from a High Court decision declining jurisdiction and dismissing the suit
Decision
Appeal allowed, dismissal order set aside, and matter remitted to the High Court for determination on merit

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Holding

The Court of Appeal held that the High Court has unlimited original jurisdiction in all matters under article 139(1) of the Constitution and section 16(1) of the Judicature Act, and that an ordinary Act of Parliament cannot oust this jurisdiction except by constitutional amendment. Section 14(1) of the Tax Appeals Tribunal Act did not deprive the High Court of original jurisdiction; a party aggrieved by a tax decision may choose either the Tribunal or the High Court. The dispute concerned a seizure of goods, an ordinary tort, not a taxation decision. The earlier Ebrahim Kassam decision was held to have been made per incuriam. The appeal was allowed and the suit remitted to the High Court for determination on merit.

Facts

In September 2001 the first appellant imported 1,000 metric tonnes of cement from Kenya, transported by the second appellant's trucks under entry No 15375. All taxes on the import were paid, a fact conceded by the respondent. The first batch of 503 tonnes was taken to store. On 1 October 2001, when agents returned to collect the balance of 497 tonnes, the respondent impounded the goods and trucks, on the ground that the first appellant had not paid taxes worth Ug. Shs. 723,397,000 on an earlier cement import under a different entry, which the first appellant denied making. The respondent threatened to sell the goods and trucks by public auction to recover the alleged tax. The appellants filed Civil Suit No 517 of 2001 in the High Court seeking recovery of the goods and trucks with costs. The respondent contended the High Court lacked original jurisdiction because the dispute was a tax matter for the Tax Appeals Tribunal. The trial judge upheld that contention and dismissed the suit.

Issues

  1. Whether the trial judge was right to hold that the High Court had no original jurisdiction in the matter.
  2. Whether the seizure of goods and trucks to enforce a taxation decision is a tax matter falling within the exclusive purview of the Tax Appeals Tribunal.
  3. Whether section 14(1) of the Tax Appeals Tribunal Act ousts the original jurisdiction of the High Court conferred by article 139(1) of the Constitution.

Orders

  • Appeal allowed with costs in favour of the appellants.
  • Dismissal order of the trial court set aside.
  • Case remitted to the High Court for determination on merit.
  • Costs in the High Court to abide the outcome of the decision on merit.

Key headnotes

Jurisdiction — Unlimited Original Jurisdiction of the High Court — Article 139(1)
The High Court has unlimited original jurisdiction in all matters under article 139(1) of the Constitution and section 16(1) of the Judicature Act, and this jurisdiction can only be altered by amending the Constitution.
Ouster Clauses — Act of Parliament Cannot Oust Constitutional Jurisdiction
An ordinary Act of Parliament cannot repeal, alter or reverse a provision of the Constitution, and so cannot oust the original jurisdiction conferred on the High Court by article 139(1) except by constitutional amendment.
Tax Appeals Tribunal — Concurrent Jurisdiction with the High Court
Section 14(1) of the Tax Appeals Tribunal Act does not oust the High Court's original jurisdiction over tax disputes; a party aggrieved by a tax authority's decision may elect either to apply to the Tribunal for review or to file a suit in the High Court.
Taxation Decision — Definition — Seizure of Goods Not a Taxation Decision
A seizure of goods is not a 'taxation decision' within the meaning of section 1(k) of the Tax Appeals Tribunal Act, which is confined to an assessment, determination, decision or notice; a claim for recovery of seized goods is an ordinary tort triable by the High Court.
Precedent — Decision Made Per Incuriam
A decision implying that an Act of Parliament ousts the High Court's original jurisdiction under article 139(1) is made per incuriam and need not be followed.

Legislation cited (12)

  • Constitution of Uganda art.139(1)
  • Constitution of Uganda art.139(2)
  • Constitution of Uganda art.2(2)
  • Constitution of Uganda art.152(3)
  • Judicature Act Cap 13 s.14
  • Judicature Act Cap 13 s.16(1)
  • Tax Appeals Tribunal Act Cap 345 s.14(1)
  • Tax Appeals Tribunal Act Cap 345 s.27
  • Tax Appeals Tribunal Act Cap 345 s.1(k)
  • Expropriated Properties Act 1982 s.14(1)
  • Customs and Excise Management Act s.114(2)
  • Customs and Excise Management Act s.114(3)

Cases cited (3)

  • David Kayondo v Cooperative Bank (U) Ltd (Civil Appeal No. 1091 of 1992)
  • Non Performing Asset Recovery Trust v Kagadu Enterprises (Civil Appeal No. 26 of 1998)
  • Ebrahim Alarakhia Kassam and 2 Others v Salik (U) Ltd and 3 Others (Civil Appeal No. 4 of 1997)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.