Drinks and Food UK Limited v The Commissioners for HMRC

Drinks and Food UK Limited v The Commissioners for HMRC

The Upper Tribunal held that the FTT had jurisdiction under s16(5) FA 94 to review the reasonableness of HMRC’s exercise of discretion to waive conditions for drawback claims, including the three-year time limit. HMRC’s correspondence constituted a waiver of the time limit. However, the Appellant failed to comply with valid conditions regarding duty stamp obliteration and export evidence, and HMRC acted reasonably in refusing to waive these conditions. The FTT was correct not to remit the decision as it was inevitable HMRC would reach the same conclusion.

Parties
Appellant / Cross Respondent: Drinks and Food UK Limited; Respondents / Cross Appellants: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
23 September 2025
Procedural Posture
Tax Appeal / Upper Tribunal Judgment
Outcome
appeal and cross-appeal dismissed; FTT decision confirmed
Legal Topics
Excise Duty Drawback, Statutory Interpretation, Public Law Jurisdiction, Discretionary Waiver, Compliance With Duty Stamp Regulations, Proof of Export Requirements
Tax Law Excise Duty Excise Duty Drawback Statutory Interpretation Public Law Jurisdiction Discretionary Waiver Compliance With Duty Stamp Regulations Proof of Export Requirements

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Parties

Drinks and Food UK Limited

Appellant / Cross Respondent

The Commissioners for His Majesty’s Revenue and Customs

Respondents / Cross Appellants

Procedural Posture

Tax Appeal / Upper Tribunal Judgment

Legal Issues

  1. 1 Whether the Upper Tribunal has jurisdiction to review the reasonableness of HMRC’s exercise of discretion under Regulation 7(1)(a) EGDR
  2. 2 Whether HMRC waived the three-year time limit for making a drawback claim
  3. 3 Whether the conditions in Excise Notice 207 regarding duty stamp obliteration and export evidence are valid and enforceable

Ratio Decidendi

The Upper Tribunal held that the FTT had jurisdiction under s16(5) FA 94 to review the reasonableness of HMRC’s exercise of discretion to waive conditions for drawback claims, including the three-year time limit. HMRC’s correspondence constituted a waiver of the time limit. However, the Appellant failed to comply with valid conditions regarding duty stamp obliteration and export evidence, and HMRC acted reasonably in refusing to waive these conditions. The FTT was correct not to remit the decision as it was inevitable HMRC would reach the same conclusion.

Court Disposition

appeal and cross-appeal dismissed; FTT decision confirmed

Orders

  • Appellant’s claim for drawback is refused except for £9,695.27, which is allowed.
  • No remittal to HMRC for reconsideration.