Flintec Transducers (Pvt) Ltd v. Commissioner General of Inland Revenue – CA TAX/0003/2018-2022

In the case between Flintec Transducers (Pvt) Ltd. and the Commissioner General of Inland Revenue, the court addressed whether reimbursements from a sister company and an insurance claim received by the appellant constituted “consideration for a taxable supply” subject to Value Added Tax (VAT) under the Sri Lankan VAT Act. The court held that reimbursements for payments made on behalf of an affiliated company did not amount to consideration for a taxable supply, but insurance proceeds relating to business assets did fall within the charge to VAT, reaffirming the principle that statutory interpretation of “in the course of carrying on, or carrying out, of a taxable activity” may encompass both continuous and isolated acts. This decision relied on the interpretation of the VAT Act and distin