R v Value Added Tax Tribunal Centre (Belfast)ex parte Commissioners of Customs and Excise
| Jurisdiction | Northern Ireland |
| Judgment Date | 24 May 1977 |
| Date | 24 May 1977 |
| Court | Court of Appeal (Northern Ireland) |
Court of Appeal (Northern Ireland).
Mr. P. Girvan (instructed by the Solicitor for Customs & Excise) for the Crown.
Mr. P. Smith for the Tribunal.
Mr. P. Gibson for the taxpayer.
Before: Lowry L.C.J.
Value added tax - Claim by taxpayer for relief in respect of purchase tax paid goods held in stock on 1 April 1973 - Claim made after 30 April 1973 - Refusal by Commissioners to sanction claim - Whether an appeal lay against such refusal - Whether Tribunal had jurisdiction to entertain such an appeal being an "appeal … with respect to … the amount of any input tax that may be deducted by a person" - section 40 subsec-or-para (1)Finance Act 1972, sec. 40(1)(d) (now section 40 subsec-or-para (1) section 4VATA 1983, sec. 40(1)(c) - Finance Act 1973, sec. 4).
This was an appeal by the Crown from the refusal by O'Donnell J. to grant an order of mandamus compelling the Belfast Value Added Tax Tribunal to strike out an appeal.
The taxpayer made a claim for rebate of purchase tax paid stock on 5 February 1976. The Commissioners refused to sanction the rebate on the grounds that, by virtue of the section 4Finance Act 1973, sec. 4, the claim was out of time. The taxpayer appealed to the Belfast VAT Tribunal against that refusal. The Commissioners issued a notice pursuant to r. 6(2) of the Value Added Tax Tribunal Rules 1972 for an order that the appeal be dismissed on the grounds that their refusal to sanction the belated claim of the taxpayer was not a matter which fell within the section 40 subsec-or-para (1)Finance Act 1972, sec. 40(1). On the same day they applied for an extension of time to serve their statement of case for a period of 21 days from the date of the giving of the direction by the Tribunal on their application under r. 6(2). The Tribunal refused the application for extension of time and ordered that a single hearing be arranged for both the substantive appeal and the Commissioners' application under r. 6(2). The appeal was heard before the Belfast Tribunal on 21 and 22 September 1976 and at the conclusion of the taxpayer's evidence the Commissioners submitted that the Tribunal had no jurisdiction to entertain the appeal. The Tribunal adjourned the hearing until 21 October 1976 to enable the Commissioners to attempt to reach an agreement with the taxpayer. On 13 October 1976 the Commissioners formally applied to the Tribunal to give a decision on the preliminary point on jurisdiction and further applied for a direction that all matters relating to the Tribunal's direction issued on 22 September be deferred until after a decision on jurisdiction had been given. By letter dated 18 October the Tribunal informed the Commissioners that in the absence of agreement between the parties as to the amount of purchase tax involved the case would be re-listed and the taxpayer would be required to prove his claim in the ordinary way. On 3 December the Commissioners applied to the High Court for leave to apply:
(a) for an order prohibiting the Tribunal from proceeding further with the hearing and determination of the appeal; and
(b) for an order of mandamus compelling the Tribunal to strike out the appeal.
O'Donnell J. granted leave but, on 31 March 1977 after hearing the parties, refused the order sought. The Commissioners appealed.
Held, allowing the Crown's appeal:
The Commissioners' refusal to sanction the taxpayer's belated claim had prevented any decision "with respect to … the amount of any input tax" from ever coming into existence and accordingly the matter could not fall within the section 40 subsec-or-para (1)Finance Act 1972, sec. 40(1)(d). No appeal, therefore, lay to a VAT Tribunal and the Crown was entitled to an order prohibiting the Tribunal from entertaining the appeal.
Lowry L.C.J.: The judgment which I am about to read is the judgment of the court.
The Commissioners of Customs and Excise appeal to this court from an order of O'Donnell J. refusing an application for an order of prohibition prohibiting the VAT Tribunal Centre (Belfast) from proceeding further with the hearing and determination of an appeal by William Watson, formerly trading as Castle Stores of 12-14 High Street, Carrickfergus, County Antrim, or alternatively for an order of mandamus compelling the Tribunal (a) to decide the question whether it has jurisdiction to determine the appeal or (b) to strike out the appeal.
Mr. Watson (whom we shall call "the taxpayer"), made a claim on 24 March 1975 for rebate on purchase tax paid on certain items. The claim was made on the wrong form and a fresh claim (which we shall call "the rebate claim") was made on the proper form on 5 February 1976. The Commissioners refused to sanction the rebate claim on the ground that it was too late, and, by letter addressed to the taxpayer's accountants, so informed him by letter dated 25 February 1976, at the same time indicating that they would have regarded the claim as too late, even if it had been made on the proper form in the first place. On 10 March 1976 the taxpayer gave notice of appeal to the Tribunal against the refusal of the Commissioners to sanction the rebate claim.
The relevant statutory appeal provisions of the Finance Act1972 are:
-
40(1) An appeal shall lie to a value added tax tribunal constituted in accordance with schedule 6Schedule 6 to this Act against the decision of the Commissioners with respect to any of the following matters: -
(a) the...
To continue reading
Request your trial
-
Royal College of Obstetricians and Gynaecologists
...Corp ELR[1988] 1 AC 395 In re McGreavy ELR[1950] 1 Ch 269 R v Value Added Tax Tribunal Centre (Belfast), ex parte C & E Commrs VAT(1977) 1 BVC 125 Roy v Kensington and Chelsea and Westminster Family Practitioner Committee ELR[1992] 1 AC 624 Secretary of State for Employment v Mann ICR[1996]......
-
Commissioners of Customs and Excise v C. & A. Modes
...the Commissioners by the Court of Appeal of Northern Ireland - seeTribunal Centre (Belfast) ex parte Customs and Excise CommissionersVAT(1977) 1 BVC 125. As the latter case would have strong persuasive effect on this court, I will consider first whether it does in fact support the submissio......
-
Commissioners of Customs and Excise v Corbitt (J. H.) (Numismatists) Ltd
...Court of Appeal in Northern Ireland in the case ofThe Queen v. Value Added Tax Tribunal Centre (Belfast), ex parte C. & E. Commrs. VAT(1977) 1 BVC 125 where the learned Lord Chief Justice of Northern Ireland, Lowry L.C.J. said at p. 129 that in his opinion the Tribunal's appellate powers di......
-
S.D. Taylor Ltd and Wilson Tupholme Ltd
...later approved by the Court of Appeal in Northern Ireland in R. v. Value Added Tax Tribunal (Belfast), ex parte C. & E. Commrs. VAT(1977) 1 BVC 125 (the Castle Stores appeal). Both these matters concerned the construction of what was then section 40 subsec-or-para (1)sec. 40(1)(d) of the Fi......