Road Accident Fund v Commissioner for the South African Revenue Service and Another (019721/2025) [2025] ZAGPPHC 336 (26 March 2025)

Road Accident Fund v Commissioner for the South African Revenue Service and Another (019721/2025) [2025] ZAGPPHC 336 (26 March 2025)

The court found that the settlement agreement between SARS and Eskom extinguished the original cause of action for diesel refunds under the Customs and Excise Act and created new contractual rights and obligations. SARS was therefore not entitled to deduct the settlement amount from the RAF levies, as the payment to Eskom did not constitute a diesel refund as envisaged by the Act. The RAF established a prima facie right to prevent the deductions, as the intended recoupment would severely prejudice its ability to perform its statutory duties and could lead to financial collapse. The balance of convenience favoured the RAF, and SARS would not suffer irreparable harm as the amounts could be...

Citation
[2025] ZAGPPHC 336
Parties
Applicant: Road Accident Fund; Respondent: Commissioner for the South African Revenue Service; Respondent: Minister of Finance; Intervening Party: Eskom
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
26 March 2025
Case Number
019721/2025
Procedural Posture
Urgent Application / Application for Interim Interdict; Urgent Court
Outcome
Interim interdict granted in favour of the applicant; SARS prohibited from deducting the disputed settlement amount from RAF levies pending resolution of the intergovernmental dispute.
Judges
Tolmay
Legal Topics
Diesel Refund Scheme, Settlement Agreement, Interim Interdict, Road Accident Fund Levies, Intergovernmental Relations Framework Act, Notice Requirements
Administrative Law Tax Law Civil Procedure Diesel Refund Scheme Settlement Agreement Interim Interdict Road Accident Fund Levies Intergovernmental Relations Framework Act +1 more

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Parties

Road Accident Fund

Applicant

Commissioner for the South African Revenue Service

Respondent

Minister of Finance

Respondent

Eskom

Intervening Party

Procedural Posture

Urgent Application / Application for Interim Interdict; Urgent Court

Legal Issues

  1. 1 Whether SARS is entitled to deduct the settlement amount from RAF levies under the Customs and Excise Act.
  2. 2 Whether the requirements for an interim interdict are met by the RAF.
  3. 3 Whether SARS's conduct in withholding information and proceeding with deductions prejudiced the RAF.

Ratio Decidendi

The court found that the settlement agreement between SARS and Eskom extinguished the original cause of action for diesel refunds under the Customs and Excise Act and created new contractual rights and obligations. SARS was therefore not entitled to deduct the settlement amount from the RAF levies, as the payment to Eskom did not constitute a diesel refund as envisaged by the Act. The RAF established a prima facie right to prevent the deductions, as the intended recoupment would severely prejudice its ability to perform its statutory duties and could lead to financial collapse. The balance of convenience favoured the RAF, and SARS would not suffer irreparable harm as the amounts could be...

Court Disposition

Interim interdict granted in favour of the applicant; SARS prohibited from deducting the disputed settlement amount from RAF levies pending resolution of the intergovernmental dispute.

Orders

  • Condonation granted for non-compliance with Rules of Court; matter heard as urgent.
  • Statutory one month notice period under section 96(1)(c)(ii) of the CEA reduced to 13 February 2025.