Medhufushi case dismissed, citing ruling ordering MVR 2.8M payment to MIRA can’t be appealed

High Court has dismissed an appeal filed by Medhufushi Investment Private Limited, declaring that a Civil Court judgment ordering the company to pay MVR 50,950 and more than USD 2.8 million in GST and related fines to the Maldives Inland Revenue Authority (MIRA) cannot be appealed.

MIRA initially filed the case to recover outstanding GST payments and late-payment penalties owed by Medhufushi Investment. The Civil Court ruled in favor of MIRA and ordered the company to pay a total of MVR 50,950 and USD 2,819,181.56.

Medhufushi Investment appealed the Civil Court’s ruling to the High Court, arguing that the lower court had applied the law in a manner that contravened established procedural principles.

In response, MIRA raised a procedural objection under Section 49(k) of the Tax Administration Act. The provision states that court decisions issued under the relevant article concerning the recovery of tax-related payments are final, legally enforceable, and not subject to appeal before a higher court.

MIRA therefore requested that the High Court dismiss the appeal on the grounds that it lacked jurisdiction to hear the case.

The High Court agreed with MIRA, concluding that because the Tax Administration Act expressly bars appeals in such cases, the existence of procedural issues does not confer appellate jurisdiction on the High Court.

Accordingly, the three-judge bench unanimously upheld MIRA’s procedural objection and dismissed Medhufushi Investment’s appeal.

The High Court bench hearing the case comprised of Judge Hassan Shafeeu, Judge Hussain Mazeed, and Judge Fatimath Farheeza.