Dragon Freight (Pty) Ltd and Others v Commissioner for the South African Revenue Service and Others (13584/20) [2020] ZAGPPHC 745; [2021] 1 All SA 883 (GP); 83 SATC 477 (11 December 2020)

Dragon Freight (Pty) Ltd and Others v Commissioner for the South African Revenue Service and Others (13584/20) [2020] ZAGPPHC 745; [2021] 1 All SA 883 (GP); 83 SATC 477 (11 December 2020)

The court found that SARS' decision to seize the 19 containers was procedurally unfair, irrational, and materially influenced by errors of law. SARS relied on Chinese Export Declarations that were illegible and unrelated to the containers in question, failed to verify the probative value of those documents, and...

Source-derived case information.

Citation
[2020] ZAGPPHC 745
Parties
Applicant: Dragon Freight (Pty) Ltd; Applicant: Tian Le Trading Enterprise CC; Applicant: New Feeling Fashion Design (Pty) Ltd; Applicant: Tingting Secret Beauty (Pty) Ltd; Applicant: HIQ Pacific Trading CC; Applicant: FFB Import-Export CC; Applicant: Calla Trading (Pty) Ltd; Respondent: Commissioner for the South African Revenue Service; Respondent: Minister of Trade and Industry; Respondent: South African Apparel Association; Respondent: Apparel and Textile Association of South Africa; Respondent: South African Clothing and Textile Workers Union
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
11 December 2020
Case Number
13584/20
Procedural Posture
Review Application / Judgment on Urgent Review Application
Outcome
Application granted. SARS' seizure decisions set aside. Containers to be released subject to payment of duties and fees.
Judges
Selby Baqwa
Legal Topics
Promotion of Administrative Justice Act, Customs and Excise Act, Judicial Review, Procedural Fairness, Transaction Value, Seizure of Goods
Administrative Law Commercial and Corporate Promotion of Administrative Justice Act Customs and Excise Act Judicial Review Procedural Fairness Transaction Value Seizure of Goods

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Parties

Dragon Freight (Pty) Ltd

Applicant

Tian Le Trading Enterprise CC

Applicant

New Feeling Fashion Design (Pty) Ltd

Applicant

Tingting Secret Beauty (Pty) Ltd

Applicant

HIQ Pacific Trading CC

Applicant

FFB Import-Export CC

Applicant

Calla Trading (Pty) Ltd

Applicant

Commissioner for the South African Revenue Service

Respondent

Minister of Trade and Industry

Respondent

South African Apparel Association

Respondent

Apparel and Textile Association of South Africa

Respondent

South African Clothing and Textile Workers Union

Respondent

Procedural Posture

Review Application / Judgment on Urgent Review Application

Legal Issues

  1. 1 Whether SARS' decision to seize the 19 containers was rational, reasonable, and procedurally fair under PAJA.
  2. 2 Whether SARS complied with the requirements of the Customs and Excise Act in seizing the goods.
  3. 3 Whether the applicants were required to exhaust internal remedies before approaching the court.

Ratio Decidendi

The court found that SARS' decision to seize the 19 containers was procedurally unfair, irrational, and materially influenced by errors of law. SARS relied on Chinese Export Declarations that were illegible and unrelated to the containers in question, failed to verify the probative value of those documents, and ignored relevant information provided by the applicants. The questionnaires used by SARS were irrelevant and not fit for purpose. The applicants had provided all required documentation, and SARS did not conduct a physical examination of the goods as it had done previously. The court held that the internal remedy under section 77B was discretionary and that special circumstances...

Court Disposition

Application granted. SARS' seizure decisions set aside. Containers to be released subject to payment of duties and fees.

Orders

  • The matter is heard as one of urgency in terms of Rule 6(12).
  • The period specified in section 96(1)(a)(i) of the Customs and Excise Act is reduced; alternatively, non-compliance with the time period is condoned.