Brooky Diamond (Private) Limited v Commissioner General of Inland Revenue – CA TAX/11/2014-2022

In the case between Brooky Diamond (Private) Limited and the Commissioner General of Inland Revenue, the court addressed whether Brooky Diamond (Pvt) Ltd was entitled to apply a zero-rate of VAT under Section 7(1)(c) of the Value Added Tax Act for diamond sawing services allegedly rendered as agent of Colandiam (Pvt) Ltd, which were ultimately re-exported to Belgium. The court held that Brooky Diamond (Pvt) Ltd failed to establish an agency relationship or meet the statutory requirements for zero-rating, thereby upholding the imposition of VAT at the standard rate. Key legal principles reaffirmed include the strict construction of tax exemptions, the burden of proof on the taxpayer, and the procedural sufficiency of assessment notifications under Section 29 of the VAT Act. The holding conf