Jones Brothers Ruthin (Civil Engineering) Co. Limited v Commissioners for Her Majesty's Revenue and Customs
Decision date: 24 March 2011
Neutral citation: [2011] UKFTT 206 (TC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned whether large granite blocks from a St Malo quarry were subject to the aggregates levy or fell within the s.18(2)(a) exemption for stone produced by a process producing one or more flat surfaces. The Tribunal found two distinct operations: severance from the rock face and a deliberate post-severance cutting/resizing process (sawing, drilling and plug-and-feather splitting) producing regular flat-faced blocks. Because the flat faces were produced intentionally by that further process, the blocks fell within the exempt process and the appeal was allowed.
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
Where rock is severed from the quarry face and then subjected to a deliberate post-severance cutting or shaping process whose object is to produce stone with one or more flat surfaces, that subsequent process can qualify as the s.18(2)(a) "exempt process" and exclude the stone from the aggregates levy; incidental or unintentional flat faces produced merely as part of extraction do not satisfy the exemption.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal indicated that "flat" need not mean perfectly smooth—corrugated but level surfaces can be regarded as flat for the purposes of the exemption; and the intended end-use of the stone does not determine exemption where there is clear evidence of deliberate cutting to produce flat surfaces.