ITQ Lanka (Private) Limited v. Commissioner General of Inland Revenue – CA TAX/0001/2019-2022

In the case between ITQ Lanka (Private) Limited and the Commissioner General of Inland Revenue, the court addressed whether the Tax Appeals Commission’s (TAC) determination was time-barred, the legitimacy and characterization of VAT and penalty assessments, and the applicability of “zero-rated” status under Section 7(1)(c) or Section 7(1)(b)(vi) of the Value Added Tax Act, No. 14 of 2002 (as amended). It was held that the statutory time limit for TAC determinations is directory rather than mandatory, and that the services provided by ITQ Lanka did not fulfill the criteria for zero-rating. The findings established that the VAT and penalty assessments were not excessive, arbitrary, or unreasonable. The principle reaffirmed is that statutory deadlines for administrative decisions may be direc