•The company claims KRA officers wrongfully closed down their manufacturing plant
•Judge won't order re-opening until investigations on alleged importation of hazardous ethanol are concluded
Image: FILE
The High Court has declined to order Kenya Revenue Authority (KRA) to re-open a Ruai-based alcohol manufacturing company it ordered closed on February 23 over tax evasion.
Judge Weldon Korir in his Thursday ruling dismissed the orders sought by Platinum Distillers to have its premises reopened for lack of merit.
Korir said the distillery was closed for allegedly importing hazardous ethanol and until investigations are complete, he cannot order the plant's reopening.
“KRA holds a serious allegation of the company importing hazardous ethanol. The court will, therefore, give them 30 days to finalise their investigations before allowing the reopening of the manufacturing premises,” he said.
The company was started in 2013 to produce and distribute alcoholic beverages.
In a petition filed through lawyer Kabugu Muguku, the company claims KRA officers wrongfully closed the plant on claims they had received a consignment containing unaccustomed ethanol.
Kabugu said Platinum Distillers and a neighbour shared a godown. Some 4,000 litres of glycol propylene had been delivered to the neighbour in two trucks. The chemical was from an Indian company.
ILLEGAL COMMODITY
The lawyer said in a confounding twist of events, KRA officers simultaneously laid siege on Platinum Distillers on the mistaken belief that the product belonged to them.
“KRA agents were following a lead on unaccustomed ethanol believing it belonged to them without conducting investigations. The company shares a building with two other companies,” he noted.
“Platinum Distillers has complied with all taxes and duties and obtained all relevant licences and meeting all safety and quality standards,” Muguku submitted.
But KRA lawyers Nelly Ngovi and George Ochieng objected to the re-opening plea and accused the company of dealing with an illegal commodity and evading tax.
The premises were closed during an operation led by the former Inspector General of Police Joseph Boinnet and the DCI boss George Kinoti
Two of company's directors have since been charged with failing to pay Sh41 million tax. Their case will be heard on March 23, 2019.