Island View Storage Limited v Commissioner For the South African Revenue Services (12262/2012) [2014] ZAKZDHC 14; 76 SATC 285 (8 April 2014)

Island View Storage Limited v Commissioner For the South African Revenue Services (12262/2012) [2014] ZAKZDHC 14; 76 SATC 285 (8 April 2014)

The court found that the Commissioner for SARS did not act capriciously in exercising his discretion to refuse the rebate claim. The applicant failed to provide sufficient evidence of the underlying cause of the loss of ethanol, relying on conjecture and hearsay. The circumstances did not meet the threshold of 'exceptional' as required by rebate item 624.50. Furthermore, the applicant did not prove that the ethanol was irrecoverably lost or that it was intended for home consumption, as required for a refund under section 76(2)(d). The court held that the Commissioner was not wrong in his determination and dismissed the application with costs.

Citation
[2014] ZAKZDHC 14
Parties
Applicant: Island View Storage Limited; Respondent: The Commissioner for the South African Revenue Services
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
8 April 2014
Case Number
12262/2012
Procedural Posture
Review Application / Final Judgment on Application for Review and Declaratory Relief
Outcome
Application dismissed with costs, including costs of Senior Counsel.
Judges
Chili
Legal Topics
Customs and Excise Act, Rebate Item 624 50, Refund of Duties, Administrative Discretion, Review of Administrative Action
Tax Law Civil Procedure Customs and Excise Act Rebate Item 624 50 Refund of Duties Administrative Discretion Review of Administrative Action

Case Brief

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Parties

Island View Storage Limited

Applicant

The Commissioner for the South African Revenue Services

Respondent

Procedural Posture

Review Application / Final Judgment on Application for Review and Declaratory Relief

Legal Issues

  1. 1 Whether the stolen ethanol qualifies for a rebate under rebate item 624.50 in schedule 6 to the Customs and Excise Act 91 of 1964.
  2. 2 Whether the Commissioner for SARS exercised his discretion capriciously or wrongly in refusing the rebate.
  3. 3 Whether section 76(2)(d) of the Customs and Excise Act applies to entitle the applicant to a refund for duties and levies paid on the stolen ethanol.

Ratio Decidendi

The court found that the Commissioner for SARS did not act capriciously in exercising his discretion to refuse the rebate claim. The applicant failed to provide sufficient evidence of the underlying cause of the loss of ethanol, relying on conjecture and hearsay. The circumstances did not meet the threshold of 'exceptional' as required by rebate item 624.50. Furthermore, the applicant did not prove that the ethanol was irrecoverably lost or that it was intended for home consumption, as required for a refund under section 76(2)(d). The court held that the Commissioner was not wrong in his determination and dismissed the application with costs.

Court Disposition

Application dismissed with costs, including costs of Senior Counsel.

Orders

  • The application is dismissed with costs, such costs to include costs consequent upon the employment of Senior Counsel.