Mat Chem CC v Commissioner of the South African Revenue Service (7139/2019) [2020] ZAKZPHC 71; 83 SATC 535 (20 November 2020)

Mat Chem CC v Commissioner of the South African Revenue Service (7139/2019) [2020] ZAKZPHC 71; 83 SATC 535 (20 November 2020)

The court found that Mat Chem disposed of goods imported under rebate in a manner inconsistent with section 75(5) of the Customs and Excise Act. The Commissioner was entitled to demand payment equivalent to the value of the goods for duty purposes under section 88(2)(a)(i). The IAAC considered all mitigating factors advanced by Mat Chem but was not persuaded that good cause existed to remit or mitigate the penalty. The use of the phrase 'no exceptional grounds have been shown' by the IAAC did not amount to a misapplication of the legal test or a failure to exercise discretion. The appeal was dismissed as Mat Chem failed to demonstrate any error in the IAAC's adjudication or grounds for...

Citation
[2020] ZAKZPHC 71
Parties
Appellant: Mat Chem CC; Respondent: Commissioner of the South African Revenue Service
Court
Kwazulu-Natal High Court, Pietermaritzburg
Jurisdiction
South Africa
Judgment Date
20 November 2020
Case Number
7139/2019
Procedural Posture
Civil Appeal / Appeal Against Administrative Determination Under S 47(9) of the Customs and Excise Act
Outcome
Appeal dismissed with costs.
Judges
Mnguni
Legal Topics
Customs and Excise Act, Rebate of Duty, Forfeiture of Goods, Mitigation of Penalties, Administrative Discretion
Tax Law Administrative Law Customs and Excise Act Rebate of Duty Forfeiture of Goods Mitigation of Penalties Administrative Discretion

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Parties

Mat Chem CC

Appellant

Commissioner of the South African Revenue Service

Respondent

Procedural Posture

Civil Appeal / Appeal Against Administrative Determination Under S 47(9) of the Customs and Excise Act

Legal Issues

  1. 1 Whether SARS acted properly in determining that Mat Chem was liable to pay a penalty equivalent to the full value of goods dealt with in contravention of the Customs and Excise Act.
  2. 2 Whether SARS exercised its discretion properly in refusing to mitigate or remit the penalty in terms of section 93(2) of the Customs and Excise Act.

Ratio Decidendi

The court found that Mat Chem disposed of goods imported under rebate in a manner inconsistent with section 75(5) of the Customs and Excise Act. The Commissioner was entitled to demand payment equivalent to the value of the goods for duty purposes under section 88(2)(a)(i). The IAAC considered all mitigating factors advanced by Mat Chem but was not persuaded that good cause existed to remit or mitigate the penalty. The use of the phrase 'no exceptional grounds have been shown' by the IAAC did not amount to a misapplication of the legal test or a failure to exercise discretion. The appeal was dismissed as Mat Chem failed to demonstrate any error in the IAAC's adjudication or grounds for...

Court Disposition

Appeal dismissed with costs.

Orders

  • Mat Chem’s appeal against the commissioner’s determination in terms of section 47(9) of the Customs and Excise Act is dismissed with costs.