CELEX: C1999/204/17
Language: en
Date: 1999-07-17 00:00:00
Title: Judgment of the Court (Second Chamber) of 29 April 1999 in Case C-136/97 (reference for a preliminary ruling by the VAT and Duties Tribunal, Manchester Tribunal Centre): Norbury Developments Ltd v Commissioners of Customs & Excise (VAT - Sixth Directive - Transitional provisions - Maintenance of exemptions - Supply of building land)

17.7.1999                EN                     Official Journal of the European Communities                                            C 204/9
                  JUDGMENT OF THE COURT                                                      JUDGMENT OF THE COURT
                          (Sixth Chamber)                                                          (Second Chamber)
                          of 29 April 1999                                                          of 29 April 1999
in Case C-342/96 Kingdom of Spain v Commission of the                      in Case C-136/97 (reference for a preliminary ruling
                    European Communities (1)                               by the VAT and Duties Tribunal, Manchester Tribunal
                                                                           Centre): Norbury Developments Ltd v Commissioners of
                                                                                                  Customs & Excise (1)
(State aid — Application of the statutory interest rate to
agreements for the repayment of wages and the payment of
        debts in respect of social security contributions)                 (VAT — Sixth Directive — Transitional provisions —
                                                                              Maintenance of exemptions — Supply of building land)
                           (1999/C 204/16)
                                                                                                     (1999/C 204/17)
                    (Language of the case: Spanish)
                                                                                               (Language of the case: English)
(Provisional translation; the definitive translation will be published
                    in the European Court Reports)
                                                                           In Case C-136/97: reference to the Court under Article 177 of
In Case C-342/96: Kingdom of Spain (Agent: Paloma Plaza                    the EC Treaty by the VAT and Duties Tribunal, Manchester
Garcia) v Commission of the European Communities (Agents:                  Tribunal Centre (United Kingdom), for a preliminary ruling in
Paul F. Nemitz and Fernando Castillo de la Torre) — application            the proceedings pending before that court between Norbury
under Article 173 of the EC Treaty for annulment of Com-                   Developments Ltd and Commissioners of Customs & Excise,
mission Decision 97/21/ECSC, EC of 30 July 1996 on State                   on the interpretation of Article 28(3)(b) of the Sixth Council
aid granted in favour of Compañı́a Española de Tubos por                 Directive (77/388/EEC) of 17 May 1977 on the harmonisation
Extrusión SA, located in Llodio, Alava (OJ 1997 L 8, p. 14)               of the laws of the Member States relating to turnover taxes —
— the Court (Sixth Chamber), composed of: G. Hirsch                        Common system of value added tax: uniform basis of assess-
(Rapporteur), President of the Second Chamber, acting for                  ment (OJ 1977 L 145, p. 1), read in conjunction with point
the President of the Sixth Chamber, G.F. Mancini and R.                    16 of Annex F thereto — the Court (Second Chamber),
Ragnemalm, Judges; Advocate General: A. La Pergola, Regis-                 composed of G. Hirsch (Rapporteur), President of the Chamber,
trar: H.A. Rühl, Principal Administrator, has given a judgment             G.F. Mancini and R. Schintgen, Judges; N. Fennelly, Advocate
on 29 April 1999, in which it:                                             General; D. Louterman-Hubeau, Principal Administrator, for
                                                                           the Registrar, has given a judgment on 29 April 1999, in
                                                                           which it has ruled:
1. Annuls Commission Decision 97/21/ECSC, EC of 30 July
     1996 on State aid granted in favour of Compañia Española de
     Tubos por Extrusión SA in so far as it declares incompatible
     with Article 92 of the EC Treaty the measures adopted by the          In relation to the supply of building land, a Member State is entitled
     Kingdom of Spain in favour of Compañia Española de Tubos            to exempt that supply under Article 28(3)(b) of the Sixth Council
     por Extrusión SA inasmuch as the interest rate of 9 % charged        Directive (77/388/EEC) of 17 May 1977 on the harmonisation of
     on the sums owed by the latter to the Fondo de Garantı́a Salarial     the laws of the Member States relating to turnover taxes — Common
    and to the Social Security Fund is lower than the prevailing           system of value added tax: uniform basis of assessment, read in
    market rates;                                                          conjunction with point 16 of Annex F thereto, notwithstanding the
                                                                           fact that, on the one hand, it has since the adoption of that directive
                                                                           introduced an election to waive the exemption from value added tax
2. Dismisses the remainder of the application;                             in respect of such supplies and, on the other hand, it has reduced the
                                                                           material scope of the exemption applicable to such supplies so that
                                                                           some previously exempt supplies are now subject to value added tax.
3. Orders each party to bear its own costs.
(1) OJ C 388 of 21.12.1996.                                                (1) OJ C 166 of 31.5.1997.