Horana Plantations PLC v. Commissioner General of Inland Revenue – CA TAX/0008/2017-2022

In the case between Horana Plantations PLC and the Commissioner General of Inland Revenue, the court addressed whether the supply of rubber trees in live form qualifies as “unprocessed agricultural products” under item XXIII of Part II (b) to the First Schedule of the Value Added Tax Act No. 14 of 2002 (as amended), and is thereby eligible for VAT exemption. It was determined that the sale of old rubber trees, uprooted through contract, does not constitute the supply of “unprocessed agricultural products” for the purposes of VAT exemption. The findings emphasized that neither the Sale of Goods Ordinance nor the VAT Act affords exempt status to such transactions, particularly given the intention of the legislature evidenced by statutory language and relevant precedent. The appeal was theref