COMMISSIONER GENERAL OF INLAND REVENUE

COMMISSIONER GENERAL OF INLAND REVENUE

Vs.

RANWELI HOLIDAY VILLAGE LTD

COURT OF APPEAL
DR. FERNANDO, J.
WIJERATNE, J.
CA/TAX/33/2019
TAC/VAT/14/2015
JULY 14, 2021

Tax Appeals Commission Act, No. 23 of 2011, section 11A-Case stated-Value Added Tax Act, No. 14 of 2002, section 8-Entitlement to VAT exemption for healthcare services-Ayurveda Act, No. 31 of 1961, sections 10(1), 55, 69(3) and 89

The respondent's Value Added Tax (VAT) return was rejected by the Assessor on the basis that the income derived from the Ayurvedic Centre that functioned in the respondent's hotel premises had not been declared by the respondent. The respondent claimed a VAT exemption on the same in terms of item (xii) of paragraph (b) of Part II of the First Schedule read with section 8 of the Value Added Tax Act, No. 14 of 2002, as amended. As the assessor was of the opinion that the respondent had not satisfied the conditions to avail itself of the exemption, the respondent appealed to the Commissioner General of Inland Revenue, who affirmed the decision of the assessor subject to a reduction of the amount payable. The respondent appealed to the

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