Gourmet Classic Limited v The Commissioners for HMRC

Gourmet Classic Limited v The Commissioners for HMRC

Cooking alcohols that are not beverages, are unsuitable for consumption as such, and are used as ingredients in food preparation, fall within the meaning of 'foodstuffs' under Article 27(1)(f) of Directive 92/83/EEC and s 4(2)(c) Finance Act 1995. If their alcoholic content does not exceed 5 litres of pure alcohol per 100 kg, they are exempt from excise duty at the point of manufacture. The respondent's interpretation, which would exclude all liquids, is not supported by the text, purpose, legislative history, or case law, and would create practical difficulties and uncertainty inconsistent with the harmonisation objective of the Directive.

Parties
Appellant: Gourmet Classic Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
25 February 2025
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal allowed in part
Legal Topics
Excise Duty, Alcoholic Ingredients Relief, Interpretation of 'foodstuffs' Under Directive 92/83/eec, Exemptions From Excise Duty, Implementation of EU Directives in UK Law
Tax Law European Union Law Excise Duty Alcoholic Ingredients Relief Interpretation of 'foodstuffs' Under Directive 92/83/eec Exemptions From Excise Duty Implementation of EU Directives in UK Law

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Parties

Gourmet Classic Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether cooking alcohols with an alcoholic content not exceeding 5 litres of pure alcohol per 100 kg are 'foodstuffs' under Article 27(1)(f) of Directive 92/83/EEC and s 4(2)(c) Finance Act 1995, and thus exempt from excise duty at the point of manufacture.

Ratio Decidendi

Cooking alcohols that are not beverages, are unsuitable for consumption as such, and are used as ingredients in food preparation, fall within the meaning of 'foodstuffs' under Article 27(1)(f) of Directive 92/83/EEC and s 4(2)(c) Finance Act 1995. If their alcoholic content does not exceed 5 litres of pure alcohol per 100 kg, they are exempt from excise duty at the point of manufacture. The respondent's interpretation, which would exclude all liquids, is not supported by the text, purpose, legislative history, or case law, and would create practical difficulties and uncertainty inconsistent with the harmonisation objective of the Directive.

Court Disposition

Appeal allowed in part

Orders

  • The decision of the Respondents dated 3 February 2023 to assess the Appellant to excise duty on cooking alcohols is quashed to the extent that it relates to cooking alcohols that contain alcohol such that 100 kilograms of the relevant product would not contain more than 5 litres of alcohol.
  • If the parties are unable to agree on the amendments to the assessment under appeal required to give effect to this decision, either party may request the Tribunal within 90 days to determine the matter remaining in dispute.