Commissioner General of Inland Revenue v. Rhino Roofing Products Limited – CA TAX/07/2019-2021

In the case between the Commissioner General of Inland Revenue, Department of Inland Revenue, Sri Lanka (Appellant) and Rhino Roofing Products Limited (Respondent), the court considered whether the Tax Appeals Commission (TAC) had erred in its interpretation of ‘value of supply of goods or services’ under Section 5(1) of the Value Added Tax (VAT) Act No. 14 of 2002, the concept of ‘open market value’ under Section 83 of the VAT Act, and the ‘adjustment of tax by credit or debit notes’ as stipulated in Section 25 of the VAT Act. The central issue revolved around whether post-sale quantity discounts processed through credit notes could properly reduce the taxable value for VAT purposes. It was held that such discounts may validly be accommodated in the value of supply for VAT computation, pr