The purport of Article 20(1) and (4) of the Special Consumption Tax Act and whether an application for input tax deduction exceeding the reporting period is filed (affirmative)

In light of the purport of Article 20(1) and (4) of the Special Consumption Tax Act, where a business operator fails to file a return of tax base or where the tax authority examines or corrects the tax base and tax amount due to an error or omission in the return of tax base, the business operator may file an application for the input tax deduction by preparing documents proving the relevant fact, regardless of the reporting period under the same Article, if the business operator fails to submit a return of tax base or makes an application for the input tax deduction in the special consumption tax, and the purport of recognizing the input tax amount in the special consumption tax is to avoid duplicate taxation on the taxable goods and

Articles 20(1) and 20(4) of the Special Consumption Tax Act

Sambu Co., Ltd. (Attorney Kim Jae-chul et al., Counsel for defendant-appellee)

Head of the tax office

Seoul High Court Decision 87Gu217 decided Feb. 9, 1988

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

We examine the grounds of appeal.

1. According to Article 20(1) and (4) of the Special Consumption Tax Act, a person who intends to obtain the deduction of the tax amount imposed on the purchased goods where the special consumption tax is imposed on the goods that are taxable goods by taking them out or selling them out, etc. using them directly for the manufacturing of other taxable goods shall submit the application form therefor to the head of the competent tax office within six months from the date on which the relevant cause occurs, along with a tax base return. In light of the fact that the provisions for convenience in tax administration and the purport of recognizing the input tax amount in the special consumption tax is to avoid double taxation on the taxable goods in the special consumption tax, and that the purpose of recognizing the input tax amount in the special consumption tax is to ensure the general tax balance, if the business operator fails to file the tax base return, or the competent tax office examines the tax base and tax amount in the case of the erroneous or incomplete return, notwithstanding the reporting period for the six-month period, the business operator may obtain the deduction of the input tax amount of the special consumption tax if he applies for the deduction to the competent tax office with the relevant documents proving under Article 34

2. In the same purport, the court below was just in holding that the defendant's disposition of imposition of the special consumption tax and the defense tax excluded by the plaintiff on April 7, 1986 was unlawful, after recognizing that the plaintiff applied for deduction of the special consumption tax already paid to the defendant on the goods brought in for manufacturing, etc. on April 12, 1986, although the defendant applied for deduction of the special consumption tax for six months from the date on which the special consumption tax and the defense tax were determined and notified to the plaintiff on June 16, 1986, and that the defendant's disposition of imposition of the special consumption tax and the defense tax excluded by the above deduction was not unlawful. It did not err in the misapprehension of legal principles as to the amount of special consumption tax. The argument is without merit.

3. Therefore, the appeal is dismissed, and all costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Kim Young-ju (Presiding Justice)