CELEX: C1996/133/14
Language: en
Date: 1996-05-04 00:00:00
Title: JUDGMENT OF THE COURT of 29 February 1996 in Case C-122/94: Commission of the European Community v. Council of the European Union (Common agricultural policy - State aid)

4 . 5 . 96             EN                   Official Journal of the European Communities                                No C 133 /7
Northern Ireland ( Agent: John D. Colahan, assisted by                 turnover taxes — Common system of value added tax :
Eleanor Sharpston, Barrister ), applications for the                   uniform basis of assessment ( OJ No L 145 , 1977, p . 1 ) — the
annulment of Commission Regulation ( EEC ) No 685/93 of                Court ( Fifth Chamber ), composed of D. A. O. Edward,
24 March 1993 amending Regulation ( EEC ) No 859/89                    President of the Chamber, J. -P. Puissochet, J. C. Moitinho
laying down detailed rules for the application of general and          de Almeida , C. Gulmann ( Rapporteur ), and L. Sevon,
special intervention measures in the beef and veal sector ( OJ         Judges; C. O. Lenz, Advocate-General ; D. Louterman­
No L 73 , 1993 , p . 9 ) — the Court ( Fifth Chamber ),                Hubeau, Principal Administrator, for the Registrar, has
composed of D. A. O. Edward , President of the Chamber,                given a judgment on 29 February 1996 , in which it
J. -P. Puissochet, J. C. Moitinho de Almeida ( Rapporteur ),           rules :
C. Gulmann and L. Sevôn, Judges; C. O. Lenz,
Advocate-General ; D. Louterman-Hubeau , Principal
Administrator, for the Registrar, gave a judgment on                   Article 4 of the Sixth Council Directive 77/388/EEC of
29 February 1996 , in which it:                                        17 May 1977 on the harmonization of the laws of the
                                                                       Member States relating to turnover taxes — Common
                                                                       system of value added tax : uniform basis ofassessment must
1 , dismisses the applications;                                        be interpreted as meaning that where the tax authority has
                                                                       accepted that a company which has declared an intention to
                                                                       commence an economic activity giving rise to taxable
2 , order the French Republic and Ireland to pay the costs,            transactions has the status of a taxable person for the
      including those of the interim proceedings;                      purposes of VAT, the commissioning ofa profitability study
                                                                       in respect of the envisaged activity may be regarded as an
                                                                       economic activity within the meaning of that Article, even if
3 , orders the United Kingdom of Great Britain and                     the purpose of that study is to investigate to what degree the
      Northern Ireland to bear its own costs .                         activity envisaged is profitable, and that except in cases of
                                                                       fraud or abuse, the status of taxable person for the purpose
                                                                       of VAT may not be withdrawn from that company
(') OJ No C 184 , 7 . 7 . 1993 .
     OJ No C 203 , 27 . 7 . 1993 .                                     retroactively where, in view ofthe results ofthat study, it has
                                                                       been decided not to move to the operational phase, but to
                                                                       put the company into liquidation with the result that the
                                                                       economic activity envisaged has not given rise to taxable
                                                                       transactions .
                                                                       C ) OJ No C 132 , 14 . 5 . 1994 .
                JUDGMENT OF THE COURT
                         ( Fifth Chamber )
                      of 29 February 1996
in Case C-l 10/94 ( reference for a preliminary ruling
from the Rechtbank van Eerste Aanleg, Bruges ):                                       JUDGMENT OF THE COURT
Intercommunale voor Zeewaterontzilting ( INZO ) v.                                         of 29 February 1996
                          Belgian State (')
                                                                            in Case C-122/94: Commission of the European
( VAT — Concept of economic activity — Status of taxable                    Community v. Council of the European Union ( 1 )
person — Activity confined to a profitability study for a
    project, followed by the abandonment of the project)                        (Common agricultural policy — State aid)
                           ( 96/C 133/ 13 )                                                      ( 96/C 133/ 14 )
                                                                                       (Language of the case: French)
                 (Language of the case: Dutch)
                                                                       (Provisional translation; the definitive translation will be
(Provisional translation; the definitive translation will be                    published in the European Court Reports)
           published in the European Court Reports)
                                                                       In Case C-122/94 : Commission of the European
In Case C- 1 10/94 : reference to the Court under Article 177          Communities ( Agents : Xenophon Yataganas and Ben
of the EC Treaty from the Rechtbank van Eerste Aanleg                  Smulders ) v . Council of the European Union ( Agents :
( Court of First Instance ), Bruges ( Belgium ), for a                 Ramon Torrent and Diego Canga Fano ) supported by
preliminary ruling in the proceedings pending before that              French Republic ( Agents : Catherine de Salins and
court between Intercommunale voor Zeewaterontzilting                   Jean-Louis Falconi ) and by the Italian Republic ( Agent:
( INZO ), in liquidation, and Belgian State — on the                   Professor Luigi Ferrari Bravo ) — application for annulment
interpretation of Article 4(1 ) and ( 2 ) of the Sixth Council         of two Council Decisions of 21 February 1994 under the
Directive 77/388/EEC of 17 May 1977 on the                             third subparagraph of Article 93 ( 2 ) of the EC Treaty
harmonization of the laws of the Member States relating to             relating to the grant of special aid for the distillation of
 ---pagebreak--- No C 133/8             EN                  Official Journal of the European Communities                                           4 . 5 . 96
certain wines in Italy and France, the Court, composed of                 Treaty precludes the driving of a motor vehicle by a
President, E. C. Rodriguez Iglesias, C. N. Kakouris and                   person who could have obtained a licence from the host
D. A. O. Edward ( Presidents of Chambers ) G. F. Mancini ,                State in exchange for the licence issued by another
F. A. Schockweiler, P. J. G. Kapteyn ( Rapporteur ),                      Member State but who did not make that exchange
C. Gulmann, J. L. Murray, P. Jann, H. Ragnemalm and                       within the prescribed period from being treated as
L. Sévon, Judges; Advocate-General : G. Cosmas, Registrar:                driving without a licence and thus rendered punishable
L. Hewlett, Administrator, has given a judgment on                        by imprisonment or a fine.
29 February 1996 , in which it:
                                                                      (') OJ No C 233 , 20 . 8 . 1994 .
 1 , dismisses the application;
2 , orders the Commission to pay the costs.
C ) OJ No C 174 , 25 . 6 . 1994 .
                                                                                    JUDGMENT OF THE COURT
                                                                                              ( Fifth Chamber)
                                                                                          of 29 February 1996
                                                                      in Case C-215/94 ( Reference for a preliminary ruling from
               JUDGMENT OF THE COURT                                  the Bundesfinanzhof): Jürgen Mohr v. Finanzamt Bad
                      of 29 February 1996                                                         Segeberg ( 1 )
in Case C-193/94 ( reference for a preliminary ruling made            (VAT — Definition of suppply of services — Definitive
by the Amtsgericht Tiergarten ): Criminal proceedings                 discontinuation of milk production — Compensation
             against Sofia Skanavi and Konstantin                            received under Regulation (EEC) No 1336/86)
                    Chryssanthakopoulos ( 1 )                                                   (9 6/C 133/16 )
(Freedom of movement for persons — Driving licences —
          Obligation to exchange them — Penalties)                                   (Language of the case: German)
                          ( 96/C 133/15 )
                                                                      (Provisional translation; the definitive translation will be
                (Language of the case: German)                                 published in the European Court Reports)
(Provisional translation; the definitive translation will be         In Case C-215/94 : Reference to the Court under Article 177
          published in the European Court Reports)                   of the EC Treaty by the Bundesfinanzhof for a preliminary
                                                                     ruling in the proceedings pending before that court between
In Case C-193/94 : reference to the Court under Article 177          Jürgen Mohr and Finanzamt Bad Segeberg — on the
of the EC Treaty by the Amtsgericht ( Local Court)                   interpretation of Articles 6(1 ) and 1 1 (A) ( 1 ) ( a ) of the Sixth
Tiergarten, Berlin, for a preliminary ruling in the criminal          Council Directive ( 77/388/EEC ) of 17 May 1977 on the
proceedings before that court against Sofia Skanavi and              harmonization of the laws of the Member States relating to
Konstantin Chryssanthakopoulos — on the interpretation               turnover taxes — Common system of value added tax:
of Articles 6 , 8a and 52 of the EC Treaty — the Court,              uniform basis of assessment ( OJ No L 145 , 1977, p . 1 ) the
composed of G. C. Rodriguez Iglesias, President, C. N.               Court ( Fifth Chamber ), composed of D. A . O. Edward,
Kakouris and G. Hirsch, ( Presidents of Chambers ), G. F.            President of the Chamber, J. -P. Puissochet, J. C. Moitinho
Mancini ( Rapporteur), F. A. Schockweiler, J. C. Moitinho            de Almeida, C. Gulmann ( Rapporteur ) and L. Sevón,
de Almeida, C. Gulmann, J. L. Murray, P. Jann,                       Judges; F. G. Jacobs, Advocate-General; H. A. Rühl,
H. Ragnemalm and L. Sevón, Judges; P. Léger,                         Principal Administrator, gave a judgment on 29 February
Advocate-General; D. Louterman-Hubeau, Principal                      1 996 , the operative part of which is as follows :
Administrator, for the Registrar, has given a judgment on
29 February 1996 , the operative part of which is as                 Articles 6 (1 ) and 11 (A) (1 ) (a) of the Sixth Council
follows :                                                            Directive (77/388/EEC) of 17 May 1977, on the
                                                                     harmonization of the laws of the Member States relating to
I . As Community law stands at present and priòr to the              turnover taxes — Common system of value added tax:
     implementation of Council Directive 91 /439/EEC of29            uniform basis of assessment, is to be interpreted as meaning
     July 1991 on driving licences, Article 52 of the EC             that an undertaking to discontinue milk production given by
     Treaty does not preclude a Member State from requiring          a farmer under Regulation (EEC) No 1336/86 of 6 May
     the holder ofa driving licence issued by another Member          1986 fixing compensation for the definitive discontinuation
     State to exchange that licence for a licence of the host        of milk production does not constitute a supply of services.
     Member State within one year of taking up normal                Consequently, any compensation received for that purpose
     residence in that State in order to remain entitled to drive    is not subject to turnover tax.
     a motor vehicle there.
                                                                     0 ) OJ No C 275 , 1 . 10 . 1994 .
2 . In view of the resultant consequences, such as may arise
     in the national legal system in question, Article 52 of the