Case No. 4/96

Case No. 4/96 Case No. 4/96 THE CONSTITUTIONAL COURT OF THE REPUBLIC OF LITHUANIA D E C I S I O N On the request of Klaipëda District Court to investigate if Item 2 of the 10 June 1993 Government of the Republic of Lithuania Resolution No. 410 “On the charges imposed by Klaipëda State Seaport” which was supplemented by the 14 September 1993 Resolution No. 700 is in compliance with the Constitution of the Republic of Lithuania, Part 4 of Article 3 of the Law of the Republic of Lithuania on Taxes on Profits of Legal Persons and item 2 of Article 21 of the Law on the Government of the Republic of Lithuania 28 November 1996, Vilnius The Constitutional Court of the Republic of Lithuania, composed of the justices of the Constitutional Court Egidijus Jaraðiûnas, Kæstutis Lapinskas, Zigmas Levickis, Augustinas Normantas, Vladas Pavilonis, Jonas Prapiestis, Pranas Vytautas Rasimavièius, Teodora Staugaitienë, and Juozas Þilys, the secretary of the hearing - Daiva Pitrënaitë, in its procedural sitting discussed the request of Klaipëda District Court to investigate if the provision “the charges as approved by this Resolution are non-realisable allowances against tax which shall be used to pay for the maintenance expenses of the port and develop its infra-structure” of Item 2 of the 10 June 1993 Government of the Republic of Lithuania Resolution No. 410 “On the charges imposed by Klaipëda State Seaport” which was supplemented by the 14 September 1993 Resolution No. 700 “On supplementing the 10 June 1993 Government of the Republic of Lithuania Resolution No. 410” is in compliance with item 15 of Article 67, item 2 of Article 94, and Parts 2 and 3 of Article 127 of the Constitution of the Republic of Lithuania, as well as Part 4 of Article 3 of the Law of the Republic of Lithuania on Taxes on Profits of Legal Persons and item 2 of Article 21 of the Law on the Government of the Republic of Lithuania. The Constitutional Court has established: The petitioner - Klaipëda District Court - investigated a civil case subsequent to the action of the plaintiff - the Klaipëda Division of the Republic of Lithuania State Control - against the respondents - the Board of Directors of Klaipëda State Seaport and Klaipëda sea cargo company “KLASCO” regarding exaction of not paid taxes on profits of legal persons into the state budget from the Board of Directors of Klaipëda State Seaport (8,089,975.2 Lt) and Klaipëda sea cargo company “KLASCO” (3,542,317.2 Lt). The Court by its interlocutory ruling suspended the investigation of the said case and appealed to the Constitutional Court with the petition to investigate if the provision “the charges as approved by this Resolution are non-realisable allowances against tax which shall be used to pay for the maintenance expenses of the port and develop its infra-structure” of Item 2 of the 10 June 1993 Government of the Republic of Lithuania Resolution No. 410 “On the charges imposed by Klaipëda State Seaport” which was supplemented by the 14 September 1993 Resolution No. 700 “On supplementing the 10 June 1993 Government of the Republic of Lithuania Resolution No. 410” is in compliance with item 15 of Article 67, item 2 of Article 94, and Parts 2 and 3 of Article 127 of the Constitution of the Republic of Lithuania, as well as Part 4 of Article 3 of the Law of the Republic of Lithuania on Taxes on Profits of Legal Persons and item 2 of Article 21 of the Law on the Government of the Republic of Lithuania. The Constitutional Court holds that: The Seimas of the Republic of Lithuania passed the Law on the Republic of Lithuania State Seaport (Official Gazette “Valstybës þinios”, No. 53-1245, 1996) in Part 2 of Article 32 whereof it was established that “the charges of the port [...] shall be the income not subject to realisation and taxation”. The Government by Items 3 and 4 of its 31 October 1996 Resolution No. 1270 “On recognition of certain Resolutions of the Government of the Republic of Lithuania on particular issues regarding the activities of Klaipëda State Seaport as being voided” (Official Gazette “Valstybës þinios” No. 107-2456) recognised Item 2 of the 10 June 1993 Government of the Republic of Lithuania Resolution No. 410 “On the charges imposed by Klaipëda State Seaport” and the 14 September 1993 Resolution No. 700 “On supplementing the 10 June 1993 Government of the Republic of Lithuania Resolution No. 410” as being voided. According to Part 4 of Article 69 of the Law on the Constitutional Court, the annulment of a disputable legal act shall be grounds to dismiss the initiated legal proceedings. Conforming to item 3, Part 2 of Article 28, and Part 4 of Article 69 of the Law of the Republic of Lithuania on the Constitutional Court, the Constitutional Court has adopted the following decision: To dismiss the initiated legal proceedings in the case. Justices of the Constitutional Court: Egidijus Jaraðiûnas Kæstutis Lapinskas Zigmas Levickis Augustinas Normantas Vladas Pavilonis Jonas Prapiestis Pranas Vytautas Rasimavièius Teodora Staugaitienë Juozas Þilys