Premier Plastics (PTY) Ltd v The Commissioner for the South African Revenue Services (9726/2021) [2022] ZAGPJHC 755 (28 July 2022)

Premier Plastics (PTY) Ltd v The Commissioner for the South African Revenue Services (9726/2021) [2022] ZAGPJHC 755 (28 July 2022)

The court found that the applicant had produced plastic bags with a wall thickness of less than 24 microns, which are not environmental levy goods under the Customs and Excise Act. Expert and documentary evidence confirmed both the thickness and the export of the bags to Lesotho and Eswatini. SARS did not provide contrary expert evidence or challenge the applicant's records. The court held that the applicant, as manufacturer and seller, qualified as an exporter under the Act and that the goods were not removed for home consumption but for export. The removal did not contravene section 20(4) or Rule 54F.12, as due entry for export was made. The environmental levy, penalties, and interest...

Citation
[2022] ZAGPJHC 755
Parties
Applicant: Premier Plastics (PTY) Ltd; Respondent: The Commissioner for the South African Revenue Services
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
28 July 2022
Case Number
9726/2021
Procedural Posture
Civil Appeal / Appeal Against SARS Determination Under Section 47(9) of the Customs and Excise Act
Outcome
Appeal upheld. SARS' decision set aside. Costs awarded to applicant.
Judges
Windell
Legal Topics
Customs and Excise Act, Environmental Levy, Export Exemption, Practice Generally Prevailing, Burden of Proof
Tax Law Administrative Law Customs and Excise Act Environmental Levy Export Exemption Practice Generally Prevailing Burden of Proof

Case Brief

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Parties

Premier Plastics (PTY) Ltd

Applicant

The Commissioner for the South African Revenue Services

Respondent

Procedural Posture

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

Legal Issues

  1. 1 Whether the plastic bags manufactured by the applicant were environmental levy goods as defined under the Customs and Excise Act.
  2. 2 Whether the applicant was liable for environmental levies, penalties and interest in respect of the disputed plastic bags.
  3. 3 Whether the removal of the plastic bags from the warehouse constituted a contravention of section 20(4) of the Act and Rule 54F.12.

Ratio Decidendi

The court found that the applicant had produced plastic bags with a wall thickness of less than 24 microns, which are not environmental levy goods under the Customs and Excise Act. Expert and documentary evidence confirmed both the thickness and the export of the bags to Lesotho and Eswatini. SARS did not provide contrary expert evidence or challenge the applicant's records. The court held that the applicant, as manufacturer and seller, qualified as an exporter under the Act and that the goods were not removed for home consumption but for export. The removal did not contravene section 20(4) or Rule 54F.12, as due entry for export was made. The environmental levy, penalties, and interest...

Court Disposition

Appeal upheld. SARS' decision set aside. Costs awarded to applicant.

Orders

  • The applicant's appeal against SARS' decision of 27 February 2020 is upheld.
  • The respondent's decision that the applicant was liable to pay the environmental levies, together with penalties and interest in the sum of R3 392 626.46 on the plastic bags manufactured in the period June 2017 to May 2018 is set aside.