Commissioner for Customs and Excise v Capital Meats CC (In Liquidation) and Another (529/96) [1998] ZASCA 80; 1999 (1) SA 570 (SCA); (25 September 1998)

Commissioner for Customs and Excise v Capital Meats CC (In Liquidation) and Another (529/96) [1998] ZASCA 80; 1999 (1) SA 570 (SCA); (25 September 1998)

The court held that the appropriate classification for the imported goods is under chapter 2, item 0204.42, as 'other meat of sheep frozen: other cuts with bone in'. The application of bread crumbs to large hunks of meat does not constitute preparation in the culinary sense, as it does not make the meat ready for eating. The explanatory notes to chapters 2 and 16 clarify that only processes not provided for in chapter 2, such as cooking or substantial preparation, would move the goods to chapter 16. The phrase 'including those merely covered with bread crumbs' is illustrative and does not override the requirement that the goods must be prepared or preserved by a process not specified in...

Citation
[1998] ZASCA 80
Parties
Appellant: Commissioner for Customs and Excise; Respondent: Capital Meats CC (In Liquidation); Respondent: Fedeco SA (Pty) Limited
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
25 September 1998
Case Number
529/96
Procedural Posture
Civil Appeal / Appeal From Judgment of Court a Quo
Outcome
Appeal upheld. Judgment of the court a quo set aside and substituted with dismissal of the application with costs.
Judges
Vivier, Howie, Schutz, Streicher, Melunsky
Legal Topics
Customs and Excise Duties, Goods Classification, Import Tariffs
Tax Law Commercial and Corporate Customs and Excise Duties Goods Classification Import Tariffs

Case Brief

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Parties

Commissioner for Customs and Excise

Appellant

Capital Meats CC (In Liquidation)

Respondent

Fedeco SA (Pty) Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment of Court a Quo

Legal Issues

  1. 1 Whether the imported mutton should be classified as frozen mutton under chapter 2 or as prepared mutton under chapter 16 for customs duty purposes.
  2. 2 Whether the application of bread crumbs to the meat constitutes preparation within the meaning of the Customs and Excise Act.

Ratio Decidendi

The court held that the appropriate classification for the imported goods is under chapter 2, item 0204.42, as 'other meat of sheep frozen: other cuts with bone in'. The application of bread crumbs to large hunks of meat does not constitute preparation in the culinary sense, as it does not make the meat ready for eating. The explanatory notes to chapters 2 and 16 clarify that only processes not provided for in chapter 2, such as cooking or substantial preparation, would move the goods to chapter 16. The phrase 'including those merely covered with bread crumbs' is illustrative and does not override the requirement that the goods must be prepared or preserved by a process not specified in...

Court Disposition

Appeal upheld. Judgment of the court a quo set aside and substituted with dismissal of the application with costs.

Orders

  • The appeal succeeds with costs, including the costs of employing two counsel.
  • The judgment of the court a quo is set aside and substituted with: 'The application is dismissed with costs, including the costs of the interlocutory application; all such costs to include the costs of employing two counsel.'