A. The Defendant, by misapprehending the legal doctrine, illegally used approximately KRW 1,800 liters of duty-free oil supplied from January 20, 2017 to July 16, 2018, on the Defendant’s vehicle. The remaining approximately KRW 2,900 liters were oiled to F and used for actual fishing.

On the other hand, the Defendant was not engaged in fishery for at least 60 days during one year, and the annual sales of fishery products through Defendant’s fishery management did not amount to at least 1.2 million won, but the Defendant’s act of catching fishery by fishing was engaged in coastal complex fisheries. As such, the Defendant is eligible to receive tax-free petroleum as a fisherman.

Therefore, the crime of fraud is not established with respect to the tax-free oil 2,90 litress used by the defendant as a fisherman for the fishery business after being oiling to F as above.

Nevertheless, the lower court determined that fraud was established against all the 4,700 liters supplied by the Defendant. Therefore, the lower court erred by misapprehending the legal doctrine, thereby adversely affecting the conclusion of the judgment.

B. The sentence imposed by the lower court (one year of imprisonment, one year of suspended execution, one year of probation, and 80 hours of community service order) is too unreasonable.

2. Determination

A. Article 106-2(1)1 of the Restriction of Special Taxation Act and Article 106-2(1)1 of the same Act concerning the application of zero-rate tax rates and exemption for value-added tax on machinery, equipment, and petroleum for agriculture, livestock, forestry, and fisheries, which were enacted accordingly, provide that a person engaged in the business of managing fish and fishery products, or the business of operating fish sleeps and fish sleeps can be supplied with tax-free oil if he/she intends to use them in coastal sea and coastal area fishing vessels. Article 20(2) of the same Act provides that a cooperative under the Fisheries Cooperatives Act, which is a tax-free petroleum management agency, may continue to engage in fisheries