ROHAS-EUCO INDUSTRIES BHD v KETUA PENGARAH JABATAN KASTAM DIRAJA MALAYSIA

w-01a-802-11-2022 Court of Appeal (Mahkamah Rayuan) 27 July 2025 • W-01(A)-802-11/2022 • 29 min read
17 cases cited (0 SG, 17 foreign)

Catchwords

This appeal concerns a claim for a refund of input tax credits (ITC) under the GST Act. The key issues were whether s.8 of the GST Repeal Act extinguished the right to refund due to late submission and whether such delay justifies forfeiture. The court held that s.8 only applied to the August 2018 claim, while earlier claims (May–July) remained valid. The Respondent may withhold refunds pending audit but not forfeit them. The Appellant's delay was not unreasonable. The forfeiture was thus illegal, and the High Court's decision was erroneous.

Practice Areas

This appeal concerns a claim for a refund of input tax credits (ITC) under the GST Act. The key issues were whether s.8 of the GST Repeal Act extinguished the right to refund due to late submission and whether such delay justifies forfeiture. The court held that s.8 only applied to the August 2018 claim, while earlier claims (May–July) remained valid. The Respondent may withhold refunds pending audit but not forfeit them. The Appellant's delay was not unreasonable. The forfeiture was thus illegal, and the High Court's decision was erroneous.

Judges (3)

Ahmad Kamal bin Md. Shahid Coram Lim Chong Fong Delivered S. Nantha Balan a/l E.s. Moorthy Coram

Parties (2)

KETUA PENGARAH JABATAN KASTAM DIRAJA MALAYSIA Respondent Rohas-euco Industries Bhd Appellant

Case Significance

ROHAS-EUCO INDUSTRIES BHD v KETUA PENGARAH JABATAN KASTAM DIRAJA MALAYSIA is a Court of Appeal (Mahkamah Rayuan) decision dated July 27, 2025 (citation: w-01a-802-11-2022). <p>Rohas-Euco Industries appealed against the forfeiture of RM836,454 in GST input tax credits for late filing of returns for the May-August 2018 taxable periods. The Court of Appeal allowed the appeal, finding the forfeiture was illegal and the Respondent could withhold refunds pending audit but not forfeit them.</p> The panel comprised Ahmad Kamal bin Md. Shahid, Lim Chong Fong and S. Nantha Balan a/l E.s. Moorthy, with Lim Chong Fong delivering the judgment.

Summary

Rohas-Euco Industries appealed against the forfeiture of RM836,454 in GST input tax credits for late filing of returns for the May-August 2018 taxable periods. The Court of Appeal allowed the appeal, finding the forfeiture was illegal and the Respondent could withhold refunds pending audit but not forfeit them.

What was the outcome of ROHAS-EUCO INDUSTRIES BHD v KETUA PENGARAH JABATAN KASTAM DIRAJA MALAYSIA?

<p>Rohas-Euco Industries appealed against the forfeiture of RM836,454 in GST input tax credits for late filing of returns for the May-August 2018 taxa...

Statutes Cited

Federal Constitution
Art 96
GST Act
s 38(3) s 38(5) s 41(6)
GST Repeal Act in essence means that notwithstanding the repeal of the GST Act
s 4(1)(b)
Repeal Act
s 8 s 8(1)
Rules of Court 2012

Cases Cited (17)

UK (9)
[1921] 1 KB 64 [1937] AC 473 [1942] AC 130 [1945] 2 All ER 499 [1946] AC 119 [1966] 1 QB 273 [1971] AC 739 [1978] AC 297 [1979] 2 All ER 22
MY (8)
[1965] 1 MLJ 228 [1970] 2 MLJ 35 [1981] 2 MLJ 150 [1994] 1 MLJ 99 [1994] 3 CLJ 541 [2004] 2 CLJ 265 [2015] 5 CLJ 923 [2018] 1 MLJ 376