Judgment — ECLI:EU:C:2008:429
Date: 2008-07-17
Language of the case: German
Court formation: Third Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Taxation
Concepts: Excise duties
Procedure: Reference for a preliminary ruling
Origin: Germany

Summary of the Judgment Tax provisions – Harmonisation of laws – Taxation of energy products and electricity – Directive 2003/96 (Council Directive 2003/96, Art. 14(1)(a)) Article 14(1)(a) of Directive 2003/96 restructuring the Community framework for the taxation of energy products and electricity, in so far as it provides for the exemption from taxation under that directive of energy products used to produce electricity, has direct effect in the sense that it may be relied upon by an individual before national courts – in relation to a period of time during which the Member State concerned was in default of its obligation to transpose that directive into its national law within the prescribed period – in a dispute between that individual and the customs authorities of that State, for the purpose of having national legislation which is incompatible with that provision disapplied and, consequently, obtaining a refund of tax which infringed that provision. The obligation to exempt from taxation under that directive energy products intended to produce electricity is expressed in terms sufficiently precise and unconditional to confer on individuals the right to rely on it in proceedings before national courts with a view to contesting national rules that are incompatible with it. The fact that the introductory wording of Article 14(1) affords Member States a degree of latitude with regard to the conditions for ensuring the correct and straightforward application of the exemption does not affect the unconditional character of that exemption obligation. The latter finding is not invalidated by the fact that Member States may, under the second sentence of Article 14(1)(a) of Directive 2003/96, impose taxation on the products in question for reasons of environmental policy, since that is merely a potential limitation to the exemption rule and since a Member State which has not exercised that option cannot rely on its own failure to do so in order to refuse a taxpayer the benefit of an exemption which he may legitimately claim under Directive 2003/96. (see paras 31-33, 39, operative part)