Wakilii

Alcohol Association of Uganda and Another v The Attorney General and Another (Miscellaneous Application No. 744 of 2019)

High Court · [2019] UGHCCD 319 · 2019 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for temporary injunction arising from miscellaneous cause seeking to restrain implementation of Tax Procedures Code (Tax Stamps) Regulations 2018
Decision
Application for temporary injunction dismissed with costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that a temporary injunction should not be granted to restrain a public body from implementing validly enacted regulations that have come into effect and not been declared unconstitutional. Courts should be slow to grant injunctions against government projects where public interest considerations outweigh private interests. The applicants failed to establish a prima facie case sufficient to justify restraining implementation of the Tax Procedures Code (Tax Stamps) Regulations 2018. Public interest in revenue collection and enforcement of tax laws prevailed over the private interests of individual taxpayers.

Outcome

Application for temporary injunction dismissed with costs

Facts

The Alcohol Association of Uganda and 39 other entities, including Nile Breweries Limited, applied for a temporary injunction to restrain the Attorney General and Uganda Revenue Authority from implementing the Tax Procedures Code (Tax Stamps) Regulations 2018. The regulations required digital tax stamps to be affixed to specified goods including beer, soda, spirits, wines, mineral water and tobacco products. The applicants objected to the cost implications of installing the Digital Tracking Solution (DTS) equipment at their factory premises, arguing that the regulations were ultra vires the parent Act and imposed penalties not envisaged under section 19A of the Tax Procedure Code Act. The Minister had made the regulations under section 75 of the Act. The Uganda Revenue Authority had issued public notice that the DTS would be implemented effective 1 November 2019. The applicants had previously filed a similar application before the Tax Appeals Tribunal which was dismissed. The regulations had come into effect prior to this application being heard.

Issues

  1. Whether the applicants demonstrated a prima facie case with probability of success sufficient to warrant a temporary injunction.
  2. Whether the applicants would suffer irreparable injury not adequately compensable by damages if the injunction were not granted.
  3. Whether the balance of convenience favoured granting the temporary injunction.
  4. Whether the court should restrain a public body from implementing regulations that have come into effect and not been declared unconstitutional or ultra vires.
  5. Whether public interest considerations justified refusing the temporary injunction.

Orders

  • Application for temporary injunction dismissed.
  • Costs awarded to the respondents.

Rules and key headnotes

Civil Procedure — Temporary Injunctions — Courts should be slow to grant injunctions against government projects in the public interest
Courts should be slow in granting injunctions against government projects which are meant for the interest of the public at large as against private proprietary interests of a few individuals. Public interest is one of the paramount and relevant considerations for granting or refusing to grant an interim injunction.
Administrative Law — Judicial Review — Courts should not restrain public bodies from exercising statutory powers unless acting unlawfully
Injunctions against public bodies can issue to prevent a public body from acting in a way that is unlawful or abusing its statutory powers or to compel performance of a duty created under statute. However, courts should be reluctant to restrain a public body from doing what the law allows it to do, as the grant of an injunction may perpetuate breach of the law which they are mandated to uphold.
Administrative Law — Subordinate Legislation — Courts cannot suspend operation of validly enacted regulations not declared unconstitutional
Courts cannot as a matter of law grant an injunction which will have the effect of suspending the operation of legislation. Where the Minister has made regulations which have come into effect, it is the duty of every citizen to comply with the law until the court declares it unconstitutional or invalid or ultra vires.
Civil Procedure — Temporary Injunctions — Balance of convenience and public interest considerations
Where conflicting interests arise between the public at large and a few individuals, the interest of the public at large should prevail over the interest of a few individuals. Public interest considerations would justify the refusal to grant a temporary injunction where public interest should prevail over private rights.

Legislation cited (9)

Cases cited (12)

  • Regent Oil Co Ltd v JT Leavesley (Lichfield) Ltd [1966] 1 WLR 1210
  • Equator International Distributors Ltd v Beiersdorf East Africa Ltd & Others (Miscellaneous Application No. 1127 of 2014)
  • Yahaya Kariisa v Attorney General & Another (SCCA No. 7 of 1994)
  • Titus Tayebwa v Fred Bogere and Eric Mukasa (Civil Appeal No. 3 of 2009)
  • Behangana Domaro and Another v Attorney General (Constitutional Application No. 73 of 2010)
  • Shiv Construction v Endesha Enterprises Ltd (Civil Appeal No. 34 of 1992)
  • Uganda National Bureau of Standards v Ren Publishers Ltd & Multiplex Limited (HCMA No. 635 of 2019)
  • R v Secretary of State for Transport ex p Factortame Ltd [1990] 2 AC 85
  • Shell Petroleum Development Company of Nigeria Limited & Another v The Governor of Lagos State & Others 5 ALL NTC- Lagos High Court
  • ACP Bakaleke Siraj v Attorney General (HCMA No. 551 of 2018)
  • Kennaway v Thompson [1981] QB 88
  • URA v Uganda Consolidated Properties Ltd (CACA No. 31 of 2000)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Alcohol Association of Uganda and Another v The Attorney General and Another (Miscellaneous Application No. 744 of 2019) [2019] UGHCCD 319 (5 November 2019)
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.