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The Appellate Division of the Supreme Court (SC) has turned down the revenue board's review petition on retrospective VAT and SD claim worth Tk19.24billion against the listed company British American Tobacco Bangladesh Company (BATBC).
Consequently, there is no claim against the company in this matter, the BATBC said in a disclosure posted on the website of Dhaka Stock Exchange (DSE) on Thursday.
The company made the disclosure on the Appellate Division's decision on receipt of its certified copy.
"It was confirmed by the Appellate Division of the Supreme Court of Bangladesh that the retrospective VAT and SD demand of NBR being Tk19.24 billion against BATB was unlawful and unjustified," the BATBC said in the disclosure.
On February 2, 2022, the company received the certified copy of the Appellate Division's decision against the review petition.
Asked, whether the Supreme Court's decision will leave any additional positive impact on the company's operation or dividend, a senior official of the company said the claim was an unaccounted amount.
"The company's dividend policy is different and we can say our company has got relief from the payment of such unaccounted amount," the official said.
The company has informed that on November 23, 2013 Large Tax Unit (LTU) of the National Board of Revenue (NBR) served a retrospective VAT and SD demand, totaling Tk19.24 billion, against the BATBC by restating Bristol and Pilot brands in the mid segment rather than the low segment.
Later on April 12, 2016, the company filed an appeal against the High Court judgment of March 30, 2016 and obtained a stay order on it.
In July 2018, the Appellate Division completed hearing of the appeal, and on July 25, 2018, it handed down a verdict in BATBC's favour.
Later, on March 25, 2020, the NBR filed a review petition against the judgment passed by the Appellate Division.
The review petition was subsequently heard on December 9, 2021 and the Appellate Division was pleased to dismiss it.
The BATBC, presently an 'A' category company, was listed with the stock exchange in 1977.
The company's sponsor-directors hold 72.91 per cent shares, the government 0.64 per cent, institutes 11.94 per cent, foreigners 8.10 per cent and general public 6.41 per cent as on December 31, 2021.