It was found that the company had received support under the Lithuanian Rural Development Programme 2014–2020 measure aimed at starting economic activities in rural areas. In implementing the project, the company acquired various metal processing and polyurethane spraying equipment, created jobs, and carried out activities. The NMA, after conducting an on-site inspection, found that part of the acquired polyurethane spraying equipment was not used during the project implementation period, and therefore decided not to pay the remaining €7,520 of the support and to recover €18,178 of the support already paid.
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The LVAT panel of judges noted that the applicant did not fully fulfill the commitments set out in the business plan related to the acquired equipment, and therefore the requirements of the support implementation rules were not properly observed. However, the court also found that the NMA incorrectly qualified the applicant’s actions in the contested decision.
The panel of judges also pointed out that when imposing a financial sanction, the NMA did not assess whether the applicant’s actions caused financial damage to the European Union’s general budget or the State budget of the Republic of Lithuania. The LVAT emphasized that such circumstances are necessary when deciding on the justification and proportionality of the sanction. Since these necessary conditions were not properly established and justified, the court ruled that the sanction imposed on the applicant was unjustified.
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The LVAT annulled the decision of the Regional Administrative Court and made a new decision – it upheld the company’s complaint, annulled the NMA decision of June 15, 2022, “On the repayment of the incurred debt,” the subsequent NMA response to the complaint, and the decision of the Lithuanian Administrative Disputes Commission.
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