Sargood Brothers v Commonwealth [1910] HCA 45

Sargood Brothers v Commonwealth [1910] HCA 45

Section 7 of the Customs Tariff 1908 operates to retrospectively validate all payments of duties collected pursuant to the proposed tariff, including duties on outside packages, and precludes any action to recover such sums even if not expressly authorised by the tariff schedule. The value of outside packages was not to be included in ad valorem duty under s.154 of the Customs Act 1901; however, retrospective ratification validates the collection. The payment was not voluntary in the common law sense, but the operation of s.167 Customs Act 1901 afforded a method to dispute, rendering payment voluntary for the purpose of recovery.

Parties
Plaintiffs: Sargood Brothers; Defendant: The Commonwealth; Defendant: Archibald William Smart, Collector of Customs for the State of Victoria
Jurisdiction
Australia
Judgment Date
12 September 1910
Procedural Posture
Action to Recover Customs Duties / Judgment of the Full Court
Legal Topics
Customs Duties, Retrospective Tariff Operation, Statutory Interpretation, Voluntary Payment, Ratification of Government Acts
Customs Law Taxation Law Administrative Law Customs Duties Retrospective Tariff Operation Statutory Interpretation Voluntary Payment Ratification of Government Acts

Case Brief

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Parties

Sargood Brothers

Plaintiffs

The Commonwealth

Defendant

Archibald William Smart, Collector of Customs for the State of Victoria

Defendant

Procedural Posture

Action to Recover Customs Duties / Judgment of the Full Court

Legal Issues

  1. 1 Whether money paid for duty on outside packages under a proposed tariff can be recovered if the tariff was not enacted as law
  2. 2 Whether payment was voluntary or made under compulsion
  3. 3 Construction and operation of section 7 of the Customs Tariff 1908

Ratio Decidendi

Section 7 of the Customs Tariff 1908 operates to retrospectively validate all payments of duties collected pursuant to the proposed tariff, including duties on outside packages, and precludes any action to recover such sums even if not expressly authorised by the tariff schedule. The value of outside packages was not to be included in ad valorem duty under s.154 of the Customs Act 1901; however, retrospective ratification validates the collection. The payment was not voluntary in the common law sense, but the operation of s.167 Customs Act 1901 afforded a method to dispute, rendering payment voluntary for the purpose of recovery.