VIVO ENERGY GHANA LTD v. CORE CONSTRUCTION LTD & GHANA REVENUE AUTHORITY

This case involves a dispute between an oil marketing company (Plaintiff) and a road construction company (1st Defendant) over the payment of import duties and VAT on bitumen products. The Plaintiff sued for unpaid amounts, while the 1st Defendant counterclaimed, arguing for tax exemptions under the ECOWAS Trade Liberalization Scheme (ETLS). The Ghana Revenue Authority (2nd Defendant) was joined to the suit. The main issue was whether bitumen AC10 and AC20 were exempt from import duties and VAT under the ETLS. The court examined the classification of these products under the Harmonized System and Customs Tariff Schedules. It was determined that the bitumen supplied by the Plaintiff was classified under HS Code 27.13.20.00, which is subject to import duty of 10% and VAT of 12.5%. The court ruled that the Plaintiff was correct in charging these taxes to the 1st Defendant, as the products were not exempt. The Plaintiff's claim for GH¢1,221,831.54 plus interest was granted, while the 1st Defendant's counterclaim was dismissed. The court also awarded costs against the 1st Defendant in favor of both the Plaintiff and the 2nd Defendant. This judgment clarifies the tax status of certain bitumen products under Ghanaian law and the ETLS, emphasizing the importance of proper product classification in international trade and taxation.