The Commissioners for HM Revenue and Customs v European Brand Trading Limited
| Jurisdiction | UK Non-devolved |
| Judge | Mr Justice Morgan |
| Neutral Citation | [2014] UKUT 0226 (TCC) |
| Court | Upper Tribunal (Tax and Chancery Chamber) |
| Subject Matter | Tax,23 May 2014 |
| Date | 23 May 2014 |
| Published date | 01 December 2016 |
[2014] UKUT 0226 (TCC)
Appeal number FTC/31/2013
Excise Duty – order of magistrates’ court condemning goods as forfeited
– further goods deemed to be duly condemned as forfeited – application by
owner of goods for restoration of goods – decision not to restore goods – review
decision upholding original decision not to restore goods – review decision set
aside by First-tier Tribunal – directions as to further review – whether
directions appropriate – extent to which further review should investigate for
any purpose whether duty paid on goods which were condemned as forfeited
IN THE UPPER TRIBUNAL
(TAX AND CHANCERY CHAMBER)
ON APPEAL FROM THE FIRST-TIER TRIBUNAL
(TAX CHAMBER)
Between :
THE COMMISSIONERS FOR HER MAJESTY’S REVENUE AND CUSTOMS
Appellants
- AND -
EUROPEAN BRAND TRADING LIMITED Respondent
TRIBUNAL: MR JUSTICE MORGAN
Sitting in public at Royal Courts of Justice, Rolls Building, Fetter Lane, London, EC4A
1NL on 20 and 21 May 2014
Mr Jonathan Swift QC and Mr James Puzey (instructed by General Counsel and Solicitor
for HM Revenue and Customs) for the Appellants
Mr James Pickup QC (instructed by Hill Dickinson, solicitors) for the Respondent
© CROWN COPYRIGHT 2014
HMRC v European Brand Trading Ltd
Page 2
DECISION
RELEASE DATE: May 2014
Tribunal Judge: Mr Justice Morgan:
Introduction
1. This is an appeal by the Commissioners for Her Majesty’s Revenue and
Customs (“HMRC”) against part of an order made by the First-tier Tribunal
(“the FTT”) (Judge Demack and Mr Robertson) on 9 October 2012. On 12
December 2012, the FTT released its decision giving its reasons for making
that order. On 20 February 2013, Judge Demack granted permission to HMRC
to appeal against part of the order of 9 October 2012.
2. This appeal requires the Upper Tribunal to consider the effect of paragraphs 5
and 6 of schedule 3 to the Customs and Excise Management Act 1979 (“the
1979 Act”), following a seizure of goods under the 1979 Act. The appeal also
involves consideration of the provisions of the 1979 Act which deal with the
power of HMRC to restore to their owner goods which have been seized or
forfeited under the 1979 Act and the provisions of the Finance Act 1994 (“the
1994 Act”) dealing with the review of a decision not to restore such goods.
Finally, the appeal involves a consideration of the powers of the First-tier
Tribunal (“the FTT”) on an appeal against a decision on such a review.
3. Many of the questions raised on this appeal are directly answered by the
decision of the Court of Appeal in Revenue and Customs Commissioners v
Jones [2012] Ch 414. Judgment in that case was given on 18 July 2011. Most
of the relevant events in the present case occurred before that date and the
parties acted without the assistance of the court’s ruling in Jones. It may be
that if the parties had appreciated that the legal position was as it was later
declared to be in Jones, matters might have been handled differently.
However, it is accepted on this appeal that the Upper Tribunal must apply the
law as declared in Jones to the circumstances of this case.
4. Mr Swift QC and Mr Puzey appeared on behalf of HMRC and Mr Pickup QC
appeared on behalf of the Respondent, European Brand Trading Limited
(“EBT”).
The statutory provisions
5. The statutory provisions which are relevant in this case are in the 1979 Act
and the 1994 Act. Section 49(1)(a)(iv) of the 1979 Act provides, so far as
material, that where any imported goods, being goods chargeable on their
importation with customs or excise duty, are removed from their place of
importation without payment of that duty, then such goods are liable to
forfeiture. The goods in question in the present case were chargeable, on their
importation, with customs or excise duty within section 49(1).
6. By section 139(1) of the 1979 Act, any thing liable to forfeiture under the
customs and excise Acts may be seized or detained by any officer or
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