JUDGMENT OF THE COURT
1. This is an appeal against the decision of the High Court (Ransley J.,) who upheld PAN AFRICAN PAPER MILLS (E.A) LIMITED, (the respondent’s) contention that an amendment to the Finance Act, 2000 (Act No. 9 of 2000) which was made five (5) years after the importation of the capital goods in question, was applicable in entitling the respondent to obtain a refund. The effect of this decision was that the COMMISSIONER OF INCOME TAX, (the appellant) was to refund to the respondent sums in excess of Kshs 260 million.
2. The genesis of this appeal as can be gleaned from the record is that in 1995 the respondent commenced a project for the expansion of its paper plant situated in Webuye in Western Kenya; that the respondent utilized over United States Dollars US$67,000,000 for purposes of capitalization of the project; that as a result of this investment, an amount of Kshs.267,608, 271/= was paid as import duty to the appellant; that prior to the year 1995, there was no …