Craft Claim

Sept 18, 2009 (LBO) - Sri Lanka's Colombo Dockyard said it rejected claims it faced a five billion rupee claim over unpaid taxes and customs duties on sale of vessels it built and that it was challenging a court petition by customs.







The shipyard said in a stock exchange filing that it had settled all taxes, duties and levies payable on 21 craft to the government revenue department.

It said a media report it avoided paying 525 million rupees on the vessels and faced a potential claim of five billion was false.

The craft were built for Sri Lanka's navy and Sri Lanka Ports Authority during 1997 and 2001.

The court of appeal had upheld Colombo Dockyard's position that continuation of a customs inquiry into the payment of levies on the craft was 'ultra vires' or beyond its powers, Colombo Dockyard's statement said.

It said the customs had sought special leave to appeal the appeal court judgment and that the yard would be objecting in the Supreme Court.