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In what is understood to be the first appeal under s.57 of the Construction Industry Council Ordinance (Cap 587) (“

”), the Chief District Judge, HH Judge Ko, handed down judgment on 30 November 2023 in

Kone Elevator (HK) Ltd v Construction Industry Council

Under Part 5 of the CICO, construction contractors throughout Hong Kong are required to pay a levy in respect of “construction operations carried out in Hong Kong”, which is known as “the Construction Industry Levy” (s.32 of the CICO).

The Appellant, a key player in the lift and escalator industry, sought to challenge a levy imposed by the Respondent, the Construction Industry Council (“

”), based on a certificate issued by the MTR Corporation Limited in relation to certain lift maintenance works. The levy was affirmed by the Objections Board established under the CICO. The Appellant then appealed to the District Court pursuant to s.57 of the CICO.

The Appellant initially pursued 11 grounds of appeal (which were pared down to three broad complaints by the time of the appeal hearing), including allegations of bias and procedural unfairness against the Objections Board, a challenge to the constitutionality of Objection Board’s proceedings, and claims that the levy as assessed by the CIC / Objections Board was 

In dismissing the appeal, the Chief District Judge made several notable findings on matters including:

(1) The nature and effect of an appeal “

(2) The power of the CIC to make “estimated assessments”, and what constitutes “completion” of works, for the purposes of s.40(1) of the CICO.

(3) Whether electrical and mechanical works such as lifts or escalators are, after installation, part of the buildings, structures or lands to which they relate, such that work done in servicing and maintaining such works are to be counted as “construction operations” for the purposes of levies under the CICO.

 instructed by Deacons, acted for the Construction Industry Council.

”), the Chief District Judge, HH Judge Ko, handed down judgment on 30 November 2023 in 

Kone Elevator (HK) Ltd v Construction Industry Council 

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