Mombasa, KENYA: The Kenya Revenue Authority on Tuesday moved to the court of appeal to challenge a decision rendered by the high court allowing an importing company to store 800,000 bags of brown sugar in a private warehouse.
Justice Erick Ogollah on 8th January directed Darasa Investment Limited to store 400,000 tonnes of sugar in J.B Maina warehouse located six kilometres from the Kenya Ports Authority.
But KRA has appealed the decision citing that the court has no power to declare where goods are supposd to be stored.
KRA lawyer Kennedy Ogotto said that it will require over 1500 tractors to transport the sugar from Port to the private warehouse.
Mr.Ogotto further said that the safety of sugar is not guaranteed at the private warehouse.
“My lordship and ladies we have suitable and safe warehouse at Kenya Ports Authority where all importers store goods and it is not clear why the judge disregarded the evidence by KRA,” said Ogotta.
But Darasa Investment Limited lawyer Fred Ngatia said that his client had identified a warehouse J.B Maina under customs control.
He further told the appellant court that his client chose J.B Maina warehouse for security reasons and insisted that KRA will still be in control of the sugar.
KRA has urged the Court not to allow the sugar which is still at sea, to be offloaded at a private warehouse.
Mr. Ogetto said that if the court of appeal allows imported sugar to be stored st s private warehouse, KRA is likely to loose sh. 2.5 billion worth of tax.
Darasa Investiment limited moved to court seeking court to bar KRA from imposing import tax of Ksh.2.5 billion on the sugar they imported from Brazil.
The government had bared tax for the importation of Sugar.
Court will rule on storage of Sugar imported on 1st February 2018.