Lietuviškai
                                      Case No. 4/96

                   THE CONSTITUTIONAL COURT OF                   
                    THE REPUBLIC OF LITHUANIA                    

                         D E C I S I O N                         

          On the request of Klaipėda District Court to           
            investigate if Item 2 of the 10 June 1993            
       Government of the Republic of Lithuania Resolution        
        No. 410 "On the charges imposed by Klaipėda State        
            Seaport" which was supplemented by the 14            
       September 1993 Resolution No. 700 is in compliance        
            with the Constitution of the Republic of             
        Lithuania, Part 4 of Article 3 of the Law of the         
       Republic of Lithuania on Taxes on Profits of Legal        
       Persons and item 2 of Article 21 of the Law on the        
             Government of the Republic of Lithuania             

                    28 November 1996, Vilnius                    
  
     The  Constitutional  Court  of  the  Republic  of Lithuania,
composed  of  the  justices  of the Constitutional Court Egidijus
Jarašiūnas,   Kęstutis  Lapinskas,  Zigmas  Levickis,  Augustinas
Normantas,  Vladas  Pavilonis,  Jonas Prapiestis, Pranas Vytautas
Rasimavičius, Teodora Staugaitienė, and Juozas Žilys,
     the secretary of the hearing - Daiva Pitrėnaitė,
     in   its   procedural   sitting  discussed  the  request  of
Klaipėda  District  Court  to  investigate  if the provision "the
charges   as  approved  by  this  Resolution  are  non-realisable
allowances  against  tax  which  shall  be  used  to  pay for the
maintenance    expenses    of    the   port   and   develop   its
infra-structure"  of  Item  2  of  the 10 June 1993 Government of
the  Republic  of  Lithuania  Resolution  No. 410 "On the charges
imposed  by  Klaipėda  State  Seaport"  which was supplemented by
the  14  September  1993 Resolution No. 700 "On supplementing the
10  June  1993 Government of the Republic of Lithuania Resolution
No.  410"  is in compliance with item 15 of Article 67, item 2 of
Article   94,   and   Parts  2  and  3  of  Article  127  of  the
Constitution  of  the Republic of Lithuania, as well as Part 4 of
Article  3  of  the  Law of the Republic of Lithuania on Taxes on
Profits  of  Legal Persons and item 2 of Article 21 of the Law on
the Government of the Republic of Lithuania.

     The Constitutional Court
                        has established:                         
  
     The  petitioner  -  Klaipėda District Court - investigated a
civil  case  subsequent  to  the  action  of  the plaintiff - the
Klaipėda  Division  of  the Republic of Lithuania State Control -
against  the  respondents  -  the  Board of Directors of Klaipėda
State  Seaport  and Klaipėda sea cargo company "KLASCO" regarding
exaction  of  not paid taxes on profits of legal persons into the
state  budget  from  the  Board  of  Directors  of Klaipėda State
Seaport   (8,089,975.2   Lt)   and  Klaipėda  sea  cargo  company
"KLASCO"   (3,542,317.2  Lt).  The  Court  by  its  interlocutory
ruling   suspended   the  investigation  of  the  said  case  and
appealed  to  the  Constitutional  Court  with  the  petition  to
investigate  if  the  provision  "the charges as approved by this
Resolution   are  non-realisable  allowances  against  tax  which
shall  be  used  to  pay for the maintenance expenses of the port
and  develop  its  infra-structure" of Item 2 of the 10 June 1993
Government  of  the  Republic of Lithuania Resolution No. 410 "On
the   charges  imposed  by  Klaipėda  State  Seaport"  which  was
supplemented  by  the  14  September  1993 Resolution No. 700 "On
supplementing  the  10  June  1993  Government of the Republic of
Lithuania  Resolution  No.  410" is in compliance with item 15 of
Article  67,  item  2 of Article 94, and Parts 2 and 3 of Article
127  of  the  Constitution  of the Republic of Lithuania, as well
as  Part  4  of Article 3 of the Law of the Republic of Lithuania
on  Taxes  on  Profits  of Legal Persons and item 2 of Article 21
of the Law on the Government of the Republic of Lithuania.

     The Constitutional Court
                           holds that:                           
  
     The  Seimas  of  the Republic of Lithuania passed the Law on
the   Republic  of  Lithuania  State  Seaport  (Official  Gazette
"Valstybės  žinios",  No.  53-1245, 1996) in Part 2 of Article 32
whereof  it  was  established that "the charges of the port [...]
shall be the income not subject to realisation and taxation".
     The  Government  by  Items  3  and  4 of its 31 October 1996
Resolution  No.  1270  "On  recognition of certain Resolutions of
the  Government  of  the  Republic  of  Lithuania  on  particular
issues  regarding  the  activities  of  Klaipėda State Seaport as
being   voided"   (Official   Gazette   "Valstybės   žinios"  No.
107-2456)  recognised  Item  2  of the 10 June 1993 Government of
the  Republic  of  Lithuania  Resolution  No. 410 "On the charges
imposed  by  Klaipėda  State  Seaport"  and the 14 September 1993
Resolution   No.   700   "On   supplementing  the  10  June  1993
Government  of  the  Republic of Lithuania Resolution No. 410" as
being  voided.  According  to  Part 4 of Article 69 of the Law on
the  Constitutional  Court,  the  annulment of a disputable legal
act   shall   be   grounds   to   dismiss   the  initiated  legal
proceedings.

     Conforming  to  item  3, Part 2 of Article 28, and Part 4 of
Article  69  of  the  Law  of  the  Republic  of Lithuania on the
Constitutional  Court,  the  Constitutional Court has adopted the
following
                            decision:                            
  
     To dismiss the initiated legal proceedings in the case.
  
Justices of the Constitutional Court:
  
Egidijus Jarašiūnas 
Kęstutis Lapinskas 
Zigmas Levickis
Augustinas Normantas 
Vladas Pavilonis 
Jonas Prapiestis
Pranas  Vytautas  Rasimavičius  
Teodora  Staugaitienė 
Juozas Žilys