Asda Stores Ltd v Her Majesty's Revenue & Customs
Decision date: 16 October 2009
Neutral citation: [2009] UKFTT 264 (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
Asda appealed HMRC's decision that its "Seed Stacked FlapJack" was standard-rated confectionary rather than zero-rated cake. The tribunal applied the ordinary‑person test to name, ingredients, texture, packaging, marketing and manner of eating, tasted the product, and found it to be a sweetened prepared food normally eaten with the fingers. The product was not regarded as a cake and the appeal was dismissed.
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
The tribunal treated classification as a question for the ordinary person's view, assessed by reference to the product's name, ingredients, texture, packaging, marketing, presentation and how it is eaten; a product substantially sweetened (here ~40% honey) and marketed/packaged as a finger‑held bar will ordinarily fall within "confectionary" for Schedule 8 Group 1 item 2 unless it has sufficient characteristics of a cake.
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 noted HMRC guidance's narrow historical definition of "flapjack" (an oat‑only product) and observed that additions which make an item resemble a cereal/seed bar will move it into standard‑rated confectionary. The tribunal also said that, if precise categorisation were required, the product would most likely be described as a cereal or seed bar.