THE Caribbean Court of Justice this week heard submissions from Guyana and attorney representing SM JALEEL & Company Limited- the company that had filed a law suit claiming millions of dollars in compensation for what it said was the wrongful levy of an Environmental Tax on it by Guyana between 2006 and 2015.In a release the Attorney General Chambers said the matter was heard by the Full Bench of the CCJ headed by Chief Justice Dr Dennis Byron. The Government of Guyana team included Dr. Claude Denbow S.C, Ms Donna Denbow Attorney-at-Law, Ms Judy Stuart-Adonis from the Attorney General’s Chambers and Basil Williams S.C M.P Attorney General and Minister of Legal Affairs. Attorney-at-law, Hans Lim-A-Po of Suriname represented S.M. Jaleel.
According to the AG chambers the Court entertained submissions from both sides for nearly three hours and adjourned the matter. It said notices will be sent in relation to when the Court is ready to render its decision. SM JALEEL & Company Limited and its locally-based subsidiary Guyana Beverages Inc. in April last year moved to the court seeking redress.
Williams had told a news conference then that the companies were seeking special leave to file an “originating application,” claiming relief and reimbursement against Guyana for an alleged breach by the South American country of the principles of trade liberalisation and free movement of goods envisioned by the Revised Treaty of Chaguaramas – the treaty which established the Caribbean Community (CARICOM) and the CARICOM Single Market and Economy (CSME).
The applicants are claiming a refund of the environmental tax imposed on the companies during the period January 1, 2006, to the date of repeal of the Act in August, 2015. The AG explained that they were relying on the judgement in the RUDISA Beverages’ matter in which a similar claim was made.
Rudisa Beverages had taken Guyana to court over a “discriminatory” environmental tax a few years ago. The company had argued that there was an imposition of $10 on every disposable container imported into Guyana. They eventually won the case, by arguing that a similar tax was not imposed on local distributors such as Banks DIH and Demerara Distillers limited.
The Caribbean Court of Justice (CCJ) subsequently granted the Government of Guyana time to repay US$6M – which the two parties agreed to – by January 31, 2016. However, Williams had explained that what is noteworthy is the fact that in the RUDISA matter, the Government of Guyana did not lead evidence to show that the tax was transferred. As such, he had noted that it was the Government’s intention to lead such evidence in the S.M Jaleel case.
SM Jaleel & Company Limited, also known as SMJ, is the largest manufacturer of non-alcoholic beverages in the English-speaking Caribbean. Since the inception in 1924 their portfolio of beverages has been distributed to over 60 countries worldwide. SMJ’s products include a wide array of soft drinks, fruit juices, purified and flavoured water, energy drinks, and other fruit-flavoured beverages.
The company’s headquarters is based in Trinidad and Tobago with subsidiary offices in Jamaica, Barbados, Suriname, Guyana, St. Lucia, South Africa and some parts of Asia.