Nairobi, Sept. 10 -- The Tax Appeals Tribunal has faulted the Kenya Revenue Authority (KRA) for classifying a cake-making additive imported by a local company, Palsgaard Kenya Ltd, without laboratory testing.

The Tribunal overturned KRA's tariff decision, saying the authority could not sustain a different classification after acknowledging that its laboratory could not accurately analyse the product.

While allowing the company's appeal, the Tribunal said KRA relied on the product's use as an emulsifier and stabiliser in cake production to classify it as a food preparation, without producing contrary chemical or technical evidence.

The dispute concerned two consignments of the cake-making additive the company imported. KRA partially ver...