KEPU Trading (PTY) Ltd v Commissioner for the South African Revenue Service (3516/18) [2022] ZAGPPHC 1026 (28 December 2022)

KEPU Trading (PTY) Ltd v Commissioner for the South African Revenue Service (3516/18) [2022] ZAGPPHC 1026 (28 December 2022)

The applicant failed to meet the statutory requirements for a refund of excise duty and levies on bunker fuel supplied to vessels. Specifically, the applicant was not licensed as a distributor at the time of acquiring certain fuel loads, which disqualified those claims. The method of supply employed by the applicant, involving storage and mixing of fuel in unlicensed tanks prior to export, was contrary to the Customs Act and did not satisfy the requirement that fuel be 'wholly and directly exported.' Furthermore, the applicant did not establish that all vessels supplied were foreign-going as defined by the Act, with several destinations listed as 'high seas' or 'fishing grounds' not...

Citation
[2022] ZAGPPHC 1026
Parties
Applicant: KEPU Trading (PTY) Ltd; Respondent: Commissioner for the South African Revenue Service
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
28 December 2022
Case Number
3516/18
Procedural Posture
Civil Appeal / Tariff Appeal Under Section 47(9)(e) of the Customs and Excise Act, Reconsideration of Evidence and Rehearing of Merits
Outcome
The appeal is dismissed. The applicant is ordered to pay the respondent's costs, including the costs of two counsel.
Judges
Kuny
Legal Topics
Customs and Excise Act, Refund of Excise Duty, Fuel Levy, Licensing of Distributors, Export Procedure, Rebate Items
Tax Law Administrative Law Customs and Excise Act Refund of Excise Duty Fuel Levy Licensing of Distributors Export Procedure Rebate Items

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Parties

KEPU Trading (PTY) Ltd

Applicant

Commissioner for the South African Revenue Service

Respondent

Procedural Posture

Civil Appeal / Tariff Appeal Under Section 47(9)(e) of the Customs and Excise Act, Reconsideration of Evidence and Rehearing of Merits

Legal Issues

  1. 1 Whether the applicant was entitled to a refund of excise duty and levies paid on bunker fuel supplied to foreign-going vessels.
  2. 2 Whether the applicant met the licensing requirements at the time of acquisition of fuel for export.
  3. 3 Whether the fuel was 'wholly and directly exported' as required by the Customs Act and relevant rebate items.

Ratio Decidendi

The applicant failed to meet the statutory requirements for a refund of excise duty and levies on bunker fuel supplied to vessels. Specifically, the applicant was not licensed as a distributor at the time of acquiring certain fuel loads, which disqualified those claims. The method of supply employed by the applicant, involving storage and mixing of fuel in unlicensed tanks prior to export, was contrary to the Customs Act and did not satisfy the requirement that fuel be 'wholly and directly exported.' Furthermore, the applicant did not establish that all vessels supplied were foreign-going as defined by the Act, with several destinations listed as 'high seas' or 'fishing grounds' not...

Court Disposition

The appeal is dismissed. The applicant is ordered to pay the respondent's costs, including the costs of two counsel.

Orders

  • The appeal is dismissed.
  • The applicant is ordered to pay the respondent's costs of the appeal, such costs to include the employment of two counsel.