Judgment of the Court (Third Chamber) of  6 October 2005  in Case C-243/03: Commission of the European Communities v French Republic (VAT — Deduction of input tax paid — Capital goods financed by subsidies)
Date: 2005-11-26
Institutions: Court of Justice
Subjects: European Commission, France, VAT, action for failure to fulfil an obligation, capital goods, tax harmonisation, tax relief

C 296/2

EN

Official Journal of the European Union

26.11.2005

1. Declares that, by failing to adopt:

— in the case of the Flemish Region, within the time-limit set by
the reasoned opinion of 23 November 1998, the measures
needed for the full and correct implementation of Article 4 of
Council Directive 91/676/EEC of 12 December 1991
concerning the protection of waters against pollution caused by
nitrates from agricultural sources and, within the time-limit
set by the reasoned opinion of 9 November 1999,
the
measures needed for the full and correct implementation of
Articles 3(1) and (2), 5 and 10 thereof, and

— in the case of the Walloon Region, within the time-limit set
by the reasoned opinion of 9 November 1999, the measures
needed for the full and correct implementation of Articles 3(1)
and (2) and 5 of that directive,

the Kingdom of Belgium has failed to fulfil its obligations under
that directive;

2. Declares that,

to the extent

the
Commission puts forward charges other than those set out in the
reasoned opinions, its action is inadmissible;

in its complaints,

to which,

3. Declares that the part of the complaint alleging infringement of
Article 5 of Directive 91/676,
in conjunction with Annex III
thereto, to the effect that the Flemish Region action programme is
only partly applicable in that region, in particular as regards the
maximum quantities of
livestock effluents that may be applied
each year in vulnerable zones, is unfounded;

4. Orders the Kingdom of Belgium to pay the costs.

(1) OJ C 171, 19.07.2003.

Republic (Agents: G. de Bergues and C.
Jurgensen-Mercier),
supported by: Kingdom of Spain (Agent: N. Díaz Abad) —
action under Article 226 EC for failure to fulfil obligations,
(Third Chamber),
brought on 6 June 2003 — the Court
composed of A. Rosas, President of the Chamber, J.-P. Puisso-
chet, S. von Bahr (Rapporteur), J. Malenovský and U. Lõhmus,
Judges; M. Poiares Maduro, Advocate General; R. Grass, Regis-
trar, gave a judgment on 6 October 2005, in which it:

1. Declares that, by introducing a special rule limiting the deduct-
ibility of value added tax on the purchase of capital goods where
they were financed by subsidies, the French Republic has failed to
fulfil its obligations under Community law,
in particular under
Articles 17 and 19 of Sixth Council Directive 77/388/EEC of
17 May 1977 on the harmonisation of the laws of the Member
States relating to turnover taxes — Common system of value
added tax: uniform basis of assessment, as amended by Council
Directive 95/7/EC of 10 April 1995;

2. Orders the Republic of France to pay the costs;

3. Orders the Kingdom of Spain to pay its own costs.

(1) OJ C 171, of 19.07.2003.

JUDGMENT OF THE COURT

(Third Chamber)

of 29 September 2005

JUDGMENT OF THE COURT

(Third Chamber)

of 6 October 2005

in Case C-243/03: Commission of the European Commu-
nities v French Republic (1)

(VAT — Deduction of input tax paid — Capital goods
financed by subsidies)

(2005/C 296/03)

(Language of the case: French)

In Case C-243/03: Commission of the European Communities
(Agent: E. Traversa, assisted by N. Coutrelis, avocat) v French

in Case C-251/03: Commission of the European Commu-
nities v Portuguese Republic (1)

(Failure of a Member State to fulfil obligations — Failure to
satisfy the requirements of Annex I to Directive 80/778/EEC
— Article 7(6) — Water intended for human consumption)

(2005/C 296/04)

(Language of the case: Portuguese)

In Case C-251/03: Commission of the European Communities
(Agents: A. Caeiros and G. Valero Jordana) v Portuguese
Republic (Agents: L. Fernandes and M. Lois) — action brought
on 11 June 2003 under Article 226 EC for failure to fulfil
Treaty obligations — the Court (Third Chamber), composed of
A. Rosas, President of the Chamber, A. La Pergola, J.-P. Puisso-
chet (Rapporteur), U. Lõhmus and A. Ó Caoimh, Judges; C.
Stix-Hackl, Advocate General; R. Grass, Registrar, gave a judg-
ment on 29 September 2005, in which it: