A surprise spot check on a nougat stall during last year's carnival celebrations left the vendor with a bitter taste when he was slapped with a fine after he was found guilty of issuing a fraudulent fiscal receipt.

Justin Caruana, 34, from Marsascala, was allegedly selling nougat from a stall registered in the name of a third party during carnival festivities in Valletta on February 7, 2016.

A surprise visit by a VAT inspector showed that the accused had issued a receipt which indicated that the nougat was VAT exempt when according to law this product was subject to an 18% tax.

The court, presided by magistrate Doreen Clarke, observed that the facts of the case were not disputed in court and declared that the sale of nougat was not VAT exempt.

Consequently, the court found the accused guilty and ordered him to pay a fine of €800.

The defence gave notice of appeal, arguing that according to the VAT Act, sweets that were manufactured and sold pre-wrapped were exempt from tax.

Inspector Colin Sheldon prosecuted. Legal Procurator Peter Paul Zammit was defence counsel.