Services) Regulations, 1997

or 1997

[..N.lOO

CUSTOMS AND EXCISE TAX ACT, 1997

(ACT NO. XII OF 1997)

Customs and Excise Tax (Sale of Products and Provision or

Services) Regulations, 1997

IN exercise a fme powers conferred by section 75 of the Customs

and Excise Tax Act . 1997, hereinafter in these regulations referred to

IS "'the Act", the Minister of Finance and Conunerce has made the

following regular:ions:-

(1) These regulations may be cited as the Customs and Excise ac-. oM

Tax (Sale of Products and Provision of Services) Regulations . 1997. ...

(2) These regulations shall come into force on the 1st July,

Tenns used in these regularions shall, unless the contclIt 1_

«hcrwise requires, have the meaning assigned 10 them in the Act.

When a sale or provision is made through an inlenoediary W. ... ,M

who acts in the name and for the account of another person and to the Ito\'. _

ClUent that the Director is satisfied that the sale or provision is made as '

aforesaid. thai sale or provision shall be treated as a sale or provision

made by that OI:her person.

In a contract of exchange each of the parties shall be deemed E'

10 make a sale of any products and the provision of any services he

gives pursuanlto that contract.

S. 1be delivery of the possession of products pursuant 10 an Doli....,..,.

agreement for the sale of those products on deferred terms shall be dt:f<fTOd .......

treated as a sale of those products.

lift,........

6, 1be delivery of the possession of products pursuant to an

agreement for the hire of those products for a certain period which

expressly conlemplates that the ownership of those products will be

transferred at a time not later than the date on which an agreed price has

been paid in full shall be treated as a sale of those producQ.

7, The supply of water, fuel , electric curren! and gas shall be SowIJ'm"_.

=:-kil

treated as a supply of products.

lI-kunsinna taJ-pussess taO pnxlotti wara u sk.ood ftehim ghall- Hr. ".. .. ...

kiri ta' dawk il-pnxlotti ghal ceMu i.mien bil-hsiebespress Ii l-proprjelA

Ia' dawk il-prodolli Ighaddi ghal ghand I· tehor fW:Jq1 Ii majkunx iktar

tard mid-.dala mela jkun thallas il· prezz miftiehem kollu gh:lndha tilqies

bh3la bejgh Ia ' clawk. il-prodoui.

II-pro ...... i!la la' ilma, karbuf1)nli. kurrenl elettriku u gass

ghandha tilqies bhala pro ... viSllla· prodotli,

8, II-pro ...... ista la' prodOlli wars. u skond kuntrart Ia' xoghlijiet.

sew jekk il-malerjal ikun gie pro ... dul kollu kem m hu jew fparti minnu

mix·xenej sew jekk. Ie. ghandha litqies bhala pro ...... isla la' dawk il-

prodoni.

9, ( I) Meta jinbieghu prodolli Ii jaghmlu poni mill· atti ...

kummerejali ta' atti ... it1l.IM-nc:gozju mwellqa minn xi persuna pennezz

ta' bejgh bl· irkant fil-qoni wars. u skond kull protediment mibdi min

kreditur jew kn:dituri Ill' dik il-persuna, dtiJ: I·atti ... gl'l3 ndu jilqies Ii tie

pro ... dul mid-debilUr fil · kors jew a ...... anz ta ' dik I-attivitll tnn· negozju.

(2) Ir· RegiSlf1)lur tal-qoni Ii tal'll I·awton tll taghha jaqa'

!:lejgh Ii ghalih japplika I. paragrafu ( I) II' dan ir-~golamen1 ghandu

jhaJ las. warn Ii jinnofifika b'dan Iill·persuna jew penuni Ii jidhnJ Ii

jkollhom inlere$S fil -kwistjoni ,lid· Direttur mir-rib ... a! Ii jigi depoiitat

ril-qorti, bi preferenu fuq kull persuna ohf1) Ii majkoll hicx preCedenu

fuq iI-taiba tnd· Direllur . kif kemm pro ... dul O·artikolu 52 la' I-Art, il'

taua Ii jk ollhn lilhallas,jekk iku n hcmm. fuq il· pro ...... i5Ia Ii lilqieS Ii

tkun Sarti skond I-imscmmi paragrafu,

(3) J iSII ' jaghmel oppoiiujoni Ii jsir il·hlas irnsenuni fir·

regolamenr (2) ta ' dan ir-rcgolamenr kull min ikollu inreress fil ·kwisljoni

u dan bil-meUII' Citaujoni Ii ssir konrra d · Direllur fi imien sill ijiem

uu-xoghol mid-data lan·nOlifika msemmija fdak il-paragrnfu.

Ma ghandha ligi appro ... ala ebda offerla a"imo

(4)

competlSundl ghall -finijiet la' I-arlikolu 331 tal · KodiCi II '

Organi12.azzjoni u ProCedUf1) Ci ... ili kemm-il darba 1-11.'(.0 Ii iko11ha

lilhallas,jekk ikun hemm, fuq il-pro ...... isla Ii tilqies Ii Ikun satel skoad

il.paragrafu ( I) la' dan ir·regolamcnl rna Ikunx giel depoiilma fiI-qorti

u rnhallsa rn ir· RegislT8tu r skond il-paragrafu (2) II' dan ir. regolament.

10, It-Irasferimenl b 'ordn i Ii jsir m inn jew risem awtorilA

pubbli kajew wara u skond xi ligi. lal'proprjclA III ' prodotti bi hlas bliala

kumpcns ghandu jitqies bliala bcjgh ta' dawk il . prodotti .

11 . ( I) Bla hsara ghru'-regolamenl 131a' dawn ir.regolame nu ,

it-lrasferime nt jew lnehhija la ' atti ... li jaghmel parti mill· alliv II' atri ... ilA

tan -ne gozju la' pcrsu na rcgislrala. bi jew bis-sahha tad-dircllivi ta] -

persuna Ii Ikun qeghda Iwenaq dik l-a11i vi ttl,scw jekkjithallas jew ikollu

jithallas xi kumpens jew Ie. u inklui it-trasrcriment jew tnehhija ta' dak

I-aniv minn dik il-persuna lilha nnifisha , ghandhomjitqiesu bhala bejgh

la' dak l-attiv1i jsir b' kumpens bhala parti mill-atti vi ta' tan-negozju

taghha.

I1-paragrafu ( I) ta ' dan ir-regolarnent rna japplilw ghal -

(2)

(a) rigal ta' prodotli maghm ul fil -kors jew avvanz la' dik 1-

anivittl tan -negozju, minbarra meta dak ikunjaghmel sehern rninn

ghadd la' ri gali Ii jsiru lill-istess pers una, meta n-nefqa Ii d-donatur

jaghmel rna tkunx ta' iktar minn ghoxrin lira;

(b) ri galli jkun kampjun industrijali rghamla Ii I-pubbliku

generali rna jkunll jista' nonnalmcnt isi bu ghall hejgh .

12, Bla hsara ghar-regolament 13 ta' dawn ir-regolamenti, meta Uh pri ....

xi prodooi Ii jaghmlu sehem mill-alliv ta' xi allivilll tan-negozju ta '

persuna regiSlrata jinlU1.8W minn dik il-persuna nnifisha jew minn lIi

persuna ohraghal lIi ghan Ii rnajkunll I-ghan ta' dik I-ani vitA tan-negozju,

sew jekk jithaJ\as jew ikoJ\ u jithallas lIi kumpens jew le, dik il-persuna

regislrala ghandha titqies bha la Ii lk un ghamlel bejgh la' pnxiolli

b' kurnpens bhaJa parti mill-atlivitA tan -negozju taghha,

13, Meta rna jilhallaslI jew rna jkollull jithallas kurnpen s ghal S ........ joppIibw

ir . ~

trasferirnenl, tnehhijajew uiu la' prodolli msemmija fir-regolament II 11 .12.

jew 12 taO dawn ir-regolamenti, dak il-lfasferimenl, tnehhija jew ui u

rna ghandhomx jitqiesu bhala atlivila tan-ncgozju mag hmu la min n

persuna registfala kemm -il darba dik il-persuna rna kellhiex jedd ghan-

hlas lura skond is-s ubanikolu (5) ta' I-anikolu 12jew is-subanik olu (2)

taO I-anikolu 56 ta ' I-An,dwar it-ta.ua shihajew pani mit-tuJL:8 mhallsa

rninnha rna' l·akkwiSI jew I-impon.azzjoni ta ' dawk il-prodotli jew ta '

kull haga Ii tista' tkun in kl uia fihom.

14, (I) Meta persuna rna tibqax suggena Ii t!.:un registrata kull GIarIIIq .

atti ... li jkun jagbmel pani mi ll-au ivitA tan· negozju taghha ghandu jilqies -.-",.

Ii jku n gie provdul b' ku rnpens lilha nnifisha qabel rna kienel hekk

suggclIlI Ii rna libqax registrata, u d-dispoiizzjonijiet tal-paragrafu ( I)

tar-regolarnent II, kif suggelli ghad-dispoiizzjonijiel lar-regolamenl

13 la' dawn ir· regolamenti ghandborn jappllkaw skond hekk.

(2) II -paragrafu (I) la' dan ir-rcgolarnent rna ghandu x

jappJika rnela I-allivittl tan -ncgozj u ligi trasferi la bhala negozju vijabbl i

u dak it-Irasfe rim enl jilqies, skond ir. regolamen t 15 la' dawn ir-

regolamcnti , 13 bhula bejgh tn' prodo(ti u IUllq as bhala provviSI3 la '

servI U •.

The delivery of products pursuant to a contract of works,

whether or not the material s have been provided in full or in part by the

customer, shall be treated as a sale of those products.

(I)

Where any products fonni ng part of the business assets

of a business activity carried on by a person are sold by judicial auction

pursuant to any proceedings ex.erci sed by a creditor or by creditors of

that person, those assets shall be deemed to have been supplied by the

debtor as a business sale.

(2) The Registrar of the court under the authority of which

a sale to which paragraph ( I) of this regulation appl ies shall , after

notifying the person or persons appearing to be interested therein, remit

to the Director fro m the proceeds lodged in court , with preference over

any other person not having a prior claim to that of the Director as

provided for in section 52 of the Act, the tax chargeable , if any , on the

supply deemed to have been made in terms of the said paragraph.

(3)

Any interested person may oppose the remittance

referred to in paragraph (2) of this regulation by means of a writ of

summons filed against the Director within six working days from the

date of the notification referred to in the said paragraph.

(4) No bid animo compensandi shall be approved for the

purposes of section 331 of the Code of Organisation and Civil Procedure

unless the tax chargeable, if any, on the supply deemed to have been

made in terms of paragraph (I) of this regulation has been lodged in

court and remitted by the Registrar in accordance with paragraph (2) of

this regulation.

The transfer by order made by or in the narne of a public

authority or in pursuance of the law, of the ownership of products against

payment of compensation shall be treated as a sale of those products.

(1)

Subject to the prov isions of regulation 13 of these

regulations, the transfer or disposal of assets fonning part of the assets

ofthe business activity of a registered person by or under the direction

of the person carrying on that acti vity, whether or not a consideration is

paid or payable, and including the transfer or disposal of such assets by

that person to himself, shall be treated as a sale of those assets made for

a consideration as part of the business activity of that person.

(2)

Paragraph ( I) of thi s regulation shall not a;>ply-

(a)

to a gift of products made in the course of that business

activity, otherwise than as fonning part of a series of gifts made to

the same person . where the cost to the donor is not more than

twenty liri;

(b) to a gift of an industrial sample in a fonn not ordinarily

available for sale to the general public.

Subject to regulation 13 of these regulations. when products Private lISe.

fanning part of the assets of a business activity of a registered person

are used by that person himself or by any other person for any purpose

other than for the purpose of that business activity, whether or not a

consideration is paid or payable, that registered person shall be treated

as having made a sale of products for a consideration as part of his

business activity .

Where no consideration is paid or payable for a transfer, Umitationof

disposal or use of products referred to in regulation 11 or 12 of these :~::!ryOf

regulations. that transfer,disposal or use shall not be treated as a business II and 12.

sale made by a registered person unless that person was entitled to a

refund in tenns of subsection (5) of section 12 or subsection (2) of

section 56 of the Act, in respect of the whole or part of the excise tax

paid by him on the acquisition or importation of the said products or

anything comprised in them.

(I) When a person ceases to be liable to be registered , any c .. ,..;ooor

assets fonning part of his business activity shan be treated as having business.

been supplied for a consideration to himself before he had ceased to be

liable to be so registered and the provisions of paragraph (I) of regulation

II, as subjectto the provisions of regulation 13 shall apply accordingly.

(2)

Paragraph (I) of this regulation shall not apply where

the business activity is transferred as a going concern and the said transfer

is, in tenns of regulation 15 of these regulations, treated as neither a

sale of products nor a provision of services.

The transfer by a registered person of assets of his business Transferor

activity shall be treated as neither a sale of products nor a provision of going concern.

services if -

(a)

the assets are sold to a registered person to whom he

transfers his business activity, or part of that activity which is

capable of separate operation, as a going concern , and

(b)

the said assets are to be used by the transferee in carrying

on the same kind of business activity, whether or not as part of an

existing activity, as that carried on by the transferor, and

(c) the said transfer is recorded in the records of the

transferor, indicating the registration number of the transferee.

Subject to the provisions of the Act, an assignment of any

rights over property or of any intangible property whether or not it is

the subject of a document establishing title is a provision of services.

An obligation to refrain from an act or to tolerate an act or

Obligation to

refrain from Il'I

situation is a provision of services.

ad {I( 10 tolerate

~"'.

JppubbIikaI mid.Dipartimcnt ta' \.!nrormazzjoni - 3, Pjwa KastiJja _ PublisMJ by the Deparrmtm if J~ _ 3, castille PIoct

Mitbugh n-Istamperija tal-Gvem - Printed at the GOvtrMlt ,!1 Printing Prns