Westland Geoprojects Holdings) Ltd v Commissioners for Her Majesty's Revenue and Customs
Decision date: 23 June 2011
Neutral citation: [2011] UKFTT 408 (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 Westland Geoprojects submitted the required C99 bill of discharge after importing goods under Inward Processing Relief on 22 June 2007 and whether its failures amounted to “obvious negligence” under Article 859 so as to preclude cancellation of a C18 customs debt. The Tribunal found no evidence that a C99 was sent or received and that the appellant’s conduct, including disregarding reminders and a history of late submissions, amounted to obvious negligence. The appeal was dismissed and the C18 debt of £1,707.02 was confirmed.
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: medium
Where a trader cannot prove on the balance of probabilities that the required discharge documentation (here a C99) was submitted to the competent office, a customs debt under Article 204 is properly incurred; further, repeated failure to ensure submission or receipt of required documentation after clear warnings can constitute “obvious negligence” under Article 859, justifying refusal to cancel the demand.
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 judgment stresses a strict approach to remission/repayment provisions and indicates that prior cancellations of demands do not oblige HMRC to cancel subsequent demands when the trader continues to fail to comply; however these points are presented as reinforcing the decision rather than as novel binding principles.