Case T-29/07: Action brought on 9 February 2007 — Lactalis Gestion Lait and Lactalis Investissements v Council
Date: 2007-03-24
Institutions: Court of First Instance
Subjects: Council of the European Union, VAT, action for annulment (EU), intra-EU trade, tax harmonisation, tax on consumption

24.3.2007

EN

Official Journal of the European Union

C 69/27

In addition the contested decision contains an inadequate state-
ment of reasons and therefore infringes Article 253 EC.

Finally, the contested decision infringes the Community prin-
ciple of the protection of legitimate expectations.

— rule that contrary to the objective that it set, Council Direc-
tive 2006/112/EC of 28 November 2006 on the common
system of value added tax, by repealing First Directive
67/227/EEC, gives, with the exception of Article 2 defining
the characteristics of VAT, an incomplete and incorrect
image of the existing VAT legislation and jeopardises the
harmonisation of laws on turnover tax;

(1) Directive 2003/87/EC of

the
Council of 13 October 2003 establishing a scheme for greenhouse
gas emission allowance trading within the Community and amending
Council Directive 96/61/EC (OJ L 275, 2003, p. 32).

the European Parliament and of

Action brought on 9 February 2007 — Lactalis Gestion
Lait and Lactalis Investissements v Council

(Case T-29/07)

(2007/C 69/56)

Language of the case: French

Parties

Applicants: Lactalis Gestion Lait and Lactalis Investissements
(Laval, France) (represented by: A. Philippart, lawyer)

Defendant: Council of the European Union

Form of order sought

— rule that the first subparagraph of Article 1 of Council
Directive 67/227/EEC, read in the light of the fourth recital
in the preamble, requires the Member States to abolish and
replace cumulative multi-stage turnover taxes which distort
competition and hinder trade between Member States;

— rule

that

subparagraph 3 of Article 1 of Directive
in the
67/227/EEC, read in the light of the eighth recital
preamble, prohibits Member States (old or new) from main-
taining or introducing measure providing for flat-rate equali-
sation of turnover taxes on importation or exportation in
trade between Member States;

— rule that Article 1 of First Directive 67/227/EEC replaces
cumulative multi-stage taxes with the common system of
value added tax and that henceforward the maintenance or
introduction of cumulative multi-stage taxes which distort
competition and hinder trade must be prohibited;

— rule that by removing all references to the principle of prin-
ciple of the prohibition on cumulative multi-stage taxes and
thereby enabling the maintenance and reintroduction of
turnover taxes of such a kind as to distort competition and
hinder trade between Member States, the Council infringes
the objectives set by Articles 3 and 93 EC and directly and
individually affects the applicants' interests;

— annul Article 411/1 of Directive 2006/112/EC in so far as it
repeals recitals 4 and 8 and subparagraphs 1 and 3 of
Article 1 of Council Directive 67/227/EEC and clearly
infringes Articles 3 and 93 EC;

— order the Council to reimburse the irrecoverable expenses

incurred in these proceedings

Pleas in law and main arguments

By this action, the applicants seek annulment of Article 411/1
of Council Directive 2006/112/EC of 28 November 2006 on
the common system of value added tax (1) in so far as it repeals
subparagraphs 1 and 3 of Article 1 of First Council Directive
67/227/EEC of 11 April 1967 on the harmonisation of legisla-
tion of Member States concerning turnover taxes (2) providing
for the abolition and prohibiting the maintenance or introduc-
tion of cumulative multi-stage taxes.

The applicants claim that by adopting such a directive, the
Council infringes the objectives of the Treaty set out in Articles 3
and 93 EC which provide for the harmonisation of laws on
turnover taxes. The applicants also submit that the repeal of
Directive 67/227/EEC by Directive 2006/112/EC calls into ques-
tion the principle of the prohibition on cumulative multi-stage
taxes which the applicants argue are, by their very nature, of
such a kind as to distort the conditions of competition and
hinder trade between Member States.

(1) OJ L 347, 2006, p. 1.
(2) OJ L 71, 2006, p. 1301.