Commissioner, South African Revenue Service v Komatsu Southern Africa (Pty) Ltd (448/05) [2006] ZASCA 156; [2007] 4 All SA 1094 (SCA); 2007 (2) SA 157 (SCA); 69 SATC 9 (26 September 2006)

Commissioner, South African Revenue Service v Komatsu Southern Africa (Pty) Ltd (448/05) [2006] ZASCA 156; [2007] 4 All SA 1094 (SCA); 2007 (2) SA 157 (SCA); 69 SATC 9 (26 September 2006)

The Supreme Court of Appeal held that the principal function and design of the Komatsu W120-3A wheel loader, as presented on importation, was that of a front-end shovel loader. The expert evidence of Mr Hoffman was preferred, establishing that the machine was specifically designed for use with a bucket and its...

Source-derived case information.

Citation
[2006] ZASCA 156
Parties
Appellant: Commissioner, South African Revenue Service; Respondent: Komatsu Southern Africa (Pty) Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
26 September 2006
Case Number
448/05
Procedural Posture
Civil Appeal / Appeal From High Court (durban)
Outcome
Appeal upheld; application dismissed with costs, including costs of two counsel.
Judges
Harms, Brand, Cloete, Theron, Cachalia
Legal Topics
Customs and Excise Act, Tariff Classification, Interpretative Rules, Classification of Imported Goods
Tax Law Commercial and Corporate Customs and Excise Act Tariff Classification Interpretative Rules Classification of Imported Goods

Source-derived case record

Summary, issues, holding and outcome

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Parties

Commissioner, South African Revenue Service

Appellant

Komatsu Southern Africa (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court (durban)

Legal Issues

  1. 1 Whether the Komatsu W120-3A wheel loader should be classified under tariff subheading 8429.51 as a front-end shovel loader or under 8430.50 as other machinery, self-propelled.
  2. 2 Whether the machine, as presented on importation, had the essential characteristics of a front-end shovel loader for customs duty purposes.
  3. 3 Whether the principal function and design of the machine determines its tariff classification under the Customs and Excise Act.

Ratio Decidendi

The Supreme Court of Appeal held that the principal function and design of the Komatsu W120-3A wheel loader, as presented on importation, was that of a front-end shovel loader. The expert evidence of Mr Hoffman was preferred, establishing that the machine was specifically designed for use with a bucket and its essential character was that of a shovel loader. The attachments were ancillary and designed to fit the machine, confirming its primary function. The court found that the machine, although incomplete, possessed the essential characteristics of a front-end shovel loader as required by General Interpretative Rule 2(a). The High Court erred in accepting the respondent's expert evidence...

Court Disposition

Appeal upheld; application dismissed with costs, including costs of two counsel.

Orders

  • The appeal is upheld with costs, including those occasioned by the employment of two counsel.
  • The order of the court a quo is set aside and substituted with: 'The application is dismissed with costs, including those occasioned by the employment of two counsel.'