Wintercorn Malaysia Sdn Bhd v Ketua Pengarah Kastam & Anor

Appellant(s): Wintercorn Malaysia Sdn Bhd

Respondent(s):

• Ketua Pengarah Jabatan Kastam Diraja Malaysia
• Jabatan Kastam Diraja Malaysia (KDRM)

• YAA Dato' Abu Bakar Bin Jais
• YA Dato' Zabariah Binti Mohd Yusof
• YA Tan Sri Harmindar Singh Dhaliwal
• YA Datuk Abdul Karim Bin Abdul Jalil
• YA Datuk Hanipah Binti Farikullah

• The appellant, a trading company exporting edible oil, purchased packaging materials for repackaging by a third-party packer before export.
• The appellant applied for sales tax exemption on these packaging materials under Item 57, Schedule A of the Sales Tax (Persons Exempted From Payment of Tax) Order 2018 (P.U.(A) 210).
• The respondent disallowed the exemption for packaging materials, issued a Bill of Demand, which the High Court quashed, but the Court of Appeal reversed, leading to this appeal.

• Whether Item 57, Schedule A of P.U.(A) 210, which exempts "all locally manufactured goods for export," extends to packaging materials used by a trader for repackaging.
• Whether the respondent could impose additional conditions, such as disallowing exemptions for "value-added or processing activity," not explicitly stipulated in the exemption order.
• Whether the Court of Appeal erred by considering Item 53, Schedule A of P.U.(A) 210, a specific exemption for packaging materials for certain goods, which was not raised at earlier stages.

• The Court adopted a strict and purposive interpretation of tax exemption provisions, holding that the onus is on the taxpayer to clearly establish eligibility.
• The Court found that Item 57, Schedule A of P.U.(A) 210 did not include packaging materials for a trader's repackaging, especially given the existence of other specific provisions for packaging exemptions (like Item 53, Schedule A) and manufacturers' exemptions.
• The Court affirmed that the "value-added process" inherent in the appellant's repackaging was a statutory feature distinguishing tax treatments for traders and manufacturers, and not an arbitrary internal policy. The appeal was dismissed.