Acting Chief Justice Roxane George-Wiltshire SC has ordered the Guyana Revenue Authority (GRA) and the Guyana Energy Agency (GEA) to release to Atlantic Fuels Inc (AFI) the 635,353 litres of diesel fuel it had seized and detained.
This is according to a press release from AFI’s attorney Siand Dhurjon who said the judge noted that the Revenue Authority and the Energy Agency acted illegally in prohibiting clearance for the importation of the fuel.
AFI had taken the GRA and GEA to court over the seizure and detention of the fuel it had imported on November 1st, last year, which Dhurjon said is worth over $80,000,000 in resale value.
In her ruling on Wednesday, Dhurjon said the Chief Justice also ordered that the storage fees which AFI has since accumulated and owes to the Falls Gas Station are to be paid by the GRA and GEA (the respondents).
According to the attorney, when the action was filed back in December, AFI had owed Falls about $4,528,678 in storage costs. He, however, surmises that what is currently owed and payable by the respondent would have increased greatly to some $15,000,000.
The lawyer said that the Chief Justice noted that with $20,000,000 in taxes and fees having already been paid to the GRA and GEA to facilitate the marking and release of the fuel, “it was difficult to see how revenue owed to the state could be lost,” as the respondents sought to contend.
Dhurjon said that the Court agreed with his submissions that the respondents had no power under the law to hinder or impede the importation of the fuel.
When AFI attempted to import the fuel, the GEA in a letter dated 3rd, December, 2020 indicated that investigations had revealed that the fuel was purchased from Staatsolie, a Surinamese Company, as opposed to Global Oil.
AFI said that GEA claimed to be in possession of an invoice from Staatsolie, which it said was materially different from the invoice submitted by AFI in terms of the purchaser, and the quantity of oil purchased.
As a consequence, the shipment of fuel was detained, and AFI was served with a summons to attend the Georgetown Magistrate’s Court on January 4th on a charge of “causing to be made and subscribed a false declaration to the GRA” contrary to section 217(1) (a) of the Customs Act.
AFI had disputed making the alleged false declaration, while stating that even if a false declaration was made, that did not permit the detention of the fuel.
Consequently, AFI asked the High Court to grant several orders including that the respondents be compelled to release the fuel.
The Falls Gas Station storage facility is owned by China Zhonghao Inc. at Land of Canaan, East Bank Demerara.
AFI’s main director is former Chairman of Guyana Water Inc (GWI), Dr. Van West Charles.
GRA’s criminal charge against AFI is pending trial before the Georgetown Magistrate’s Court.
