A FUEL distributor based at Shannon Airport was exempt from paying rates because it was acting on behalf of the Minister for Transport in attracting and retaining airport customers, the Supreme Court held yesterday.
The court set aside a High Court decision that Tedcastles Aviation Fuels Limited was liable to rates because it had the immediate use and enjoyment of property comprising a fuel depot, tanks, offices, stores and yard at the airport in Co Clare.
The High Court action arose out of the conclusion by the Valuation Tribunal in December, 1988, which resulted from an appeal by Tedcastles against the commissioners' valuation of the aviation facility.
The tribunal had concluded that the facilities remained in the occupation of the State and that Tedcastles, which has been operating the facility since December, 1983, was exempt from rating because the facilities were used for public services.
The opinion of the High Court had been sought by Aer Rianta as to whether the tribunal was correct in law in reaching its finding. The judgment of the High Court was delivered by Mr Justice Lavan in July, 1992.
The Supreme Court yesterday found that it was clear that Tedcastles were performing a task on behalf of the Minister.
The right of the company to go on and use the aviation facility was no more than that of an employee or independent contractor.
It was the court's view that the Minister never withdrew from possession of the aviation facility.