1. The subject of the dispute is the recognition of the invalidity of supply agreements between JSC “DPSCU” and LLC “Agrostrong Company” on the grounds that these agreements, according to the tax authority, contradict the interests of the state.
2. The Supreme Court, granting the cassation appeal of the tax authority, emphasized that in tax legal relations, the controlling body performs authoritative management functions and is a subject of power. When applying to the court with a claim for recognition of transactions as invalid, the tax authority acts as a subject of power, implementing public-power management functions to ensure the fulfillment of the constitutional duty of the taxpayer. The court emphasized that such disputes are related to the implementation by the STS bodies of competence regarding the implementation of tax control and, therefore, are public-legal. The court referred to the ruling of the Grand Chamber of the Supreme Court of May 08, 2025, where it was concluded that cases on claims of the controlling body for recognition of transactions as invalid are subject to consideration by administrative courts. The court also noted that the consideration of such disputes within the framework of economic jurisdiction leads to the fact that the tax authority must prove the violation of its rights and interests, although the disputed transactions do not affect any rights and interests of the STS bodies, since in these legal relations they implement exclusively authoritative management functions.
3. The Supreme Court overturned the ruling of the appellate court and sent the case for continued consideration to the court of appeal.
