JMC Jayasekara Management Centre (Pvt) Limited vs Commissioner General of Inland Revenue – SC/APPEAL/05/2021-2025

The case between Commissioner General of Inland Revenue, Department of Inland Revenue and JMC Jayasekara Management Centre (Pvt) Limited addressed the issue of whether the District Court possessed jurisdiction to recover tax in default as a fine under section 43(1) of the VAT Act or whether jurisdiction was exclusively vested in the Magistrate’s Court. The analysis examined statutory provisions, notably sections 42(6) and 43(1) of the VAT Act, alongside established case law and principles of statutory construction. It was determined that the District Court’s imposition of a fine under section 43(1) was ultra vires, with the recovery of tax in default required to proceed through seizure and sale in accordance with section 42(6). The findings reaffirmed the statutory allocation of powers and