FTTX and Energy Warehouse (Pty) Ltd v Commissioner for the South African Revenue Service (2022/5522) [2025] ZAGPPHC 140 (31 January 2025)

FTTX and Energy Warehouse (Pty) Ltd v Commissioner for the South African Revenue Service (2022/5522) [2025] ZAGPPHC 140 (31 January 2025)

The court found that the tray, described as 'FCST01131 Fiber Optical Splice Closure – 8 Core', is not a connector for optical fibres as defined in TH8536.70, since it does not itself enable the mechanical alignment and joining of optical fibres but rather facilitates such connection when used with connectors. The tray was specifically designed and manufactured for use solely or principally with fibre connectors and cables, to facilitate and ensure an easy, safe, proper, functional and aligned connection of optic fibres. The wording of TH8538.90, which covers parts suitable for use solely or principally with connectors for optical fibres, was found to be applicable. The respondent's...

Citation
[2025] ZAGPPHC 140
Parties
Applicant: FTTX and Energy Warehouse (Pty) Ltd; Respondent: Commissioner for the South African Revenue Service
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
31 January 2025
Case Number
2022/5522
Procedural Posture
Statutory Appeal / Final Judgment
Outcome
The application succeeds; the respondent's tariff determination is set aside and the product is reclassified under TH8538.90.
Judges
A J Le Grange
Legal Topics
Customs and Excise Act, Tariff Classification, Review of Administrative Action, Statutory Appeal
Tax Law Civil Procedure Customs and Excise Act Tariff Classification Review of Administrative Action Statutory Appeal

Case Brief

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Parties

FTTX and Energy Warehouse (Pty) Ltd

Applicant

Commissioner for the South African Revenue Service

Respondent

Procedural Posture

Statutory Appeal / Final Judgment

Legal Issues

  1. 1 Whether the product 'FCST01131 Fiber Optical Splice Closure – 8 Core' should be classified under tariff heading 3926.90 as an article of plastic or under TH8536.70/TH8538.90 as a connector or part thereof for optical fibre.
  2. 2 Whether the tray imported without connectors qualifies as a connector or as a part suitable for use with connectors for optical fibres.
  3. 3 Whether the respondent's tariff determination CTN 55/2020 dated 5 July 2020 was correct.

Ratio Decidendi

The court found that the tray, described as 'FCST01131 Fiber Optical Splice Closure – 8 Core', is not a connector for optical fibres as defined in TH8536.70, since it does not itself enable the mechanical alignment and joining of optical fibres but rather facilitates such connection when used with connectors. The tray was specifically designed and manufactured for use solely or principally with fibre connectors and cables, to facilitate and ensure an easy, safe, proper, functional and aligned connection of optic fibres. The wording of TH8538.90, which covers parts suitable for use solely or principally with connectors for optical fibres, was found to be applicable. The respondent's...

Court Disposition

The application succeeds; the respondent's tariff determination is set aside and the product is reclassified under TH8538.90.

Orders

  • The respondent’s application for the filing of a duplicate affidavit is granted with no order as to costs.
  • The tariff determination no CTN 55/2020 dated 5 July 2020 is set aside.