Dawson's (Wales) Ltd v The Commissioners for HMRC

Dawson's (Wales) Ltd v The Commissioners for HMRC

The requirement of intention to assert control is not part of the legal test for 'holding' excise goods under the Excise Directive and HMDP Regulations; physical possession and de facto or legal control suffice. The question of 'holding' is a mixed question of fact and law and cannot be determined as a preliminary issue on assumed facts.

Parties
Appellant: Dawson’s (Wales) Ltd; Respondents: The Commissioners for His Majesty’s Revenue & Customs
Jurisdiction
England and Wales
Judgment Date
28 March 2023
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From Upper Tribunal
Outcome
Appeal allowed in part (ground 1), dismissed in part (grounds 2 and 3)
Legal Topics
Excise Duty, Interpretation of 'holding' Under Excise Directive, Liability for Excise Duty, Preliminary Issues in Tax Appeals
Tax Law EU Law Excise Duty Interpretation of 'holding' Under Excise Directive Liability for Excise Duty Preliminary Issues in Tax Appeals

Case Brief

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Parties

Dawson’s (Wales) Ltd

Appellant

The Commissioners for His Majesty’s Revenue & Customs

Respondents

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From Upper Tribunal

Legal Issues

  1. 1 Whether 'holding' under Article 7(2)(b) of the Excise Directive and regulation 6 of the HMDP Regulations requires intention to assert control against others
  2. 2 Whether the Upper Tribunal over-refined the legal test for 'holding'
  3. 3 Whether the question of 'holding' is suitable for determination as a preliminary issue

Ratio Decidendi

The requirement of intention to assert control is not part of the legal test for 'holding' excise goods under the Excise Directive and HMDP Regulations; physical possession and de facto or legal control suffice. The question of 'holding' is a mixed question of fact and law and cannot be determined as a preliminary issue on assumed facts.

Court Disposition

Appeal allowed in part (ground 1), dismissed in part (grounds 2 and 3)

Orders

  • Reference to intention to assert control in the Upper Tribunal decision is incorrect and must not be applied.
  • The test for 'holding' is not over-refined; factors of physical possession, control, time, and location are relevant.