[2002] UGHC 44

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)}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1334516 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\b\ul\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 THE REPUBLLIC OF UGANDA }{ \b\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 \line IN THE HIGH COURT OF UGANDA AT KAMPALA \line CIVIL APPEAL NO. 01 OF 2001 \line }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 \line }{ \b\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 THE HAIR CARE CENTER LTD }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 :::::::::::::::::::::::::}{\lang1033\langfe2057\langnp1033\insrsid1334516 ::::::::}{ \lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 :::::::::::::: }{\b\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 APPELLANT \line VERSUS \line UGANDA}{\b\lang1033\langfe2057\langnp1033\insrsid6446481 }{ \b\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 REVENUE}{\b\lang1033\langfe2057\langnp1033\insrsid6446481 }{\b\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 AUTHORITY }{ \lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 :::::::::::::::::::::::}{\lang1033\langfe2057\langnp1033\insrsid6446481 :::::::}{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 :::::::::: }{ \b\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 RESPONDENT \line }{\b\ul\lang1033\langfe2057\langnp1033\insrsid6255162\charrsid12913679 BEFORE:}{\ul\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 THE HON. MR. JUSTICE R. O. OKUMU WENGI. }{\b\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 \line }{\lang1033\langfe2057\langnp1033\insrsid6446481 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid6446481 {\b\ul\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 JUDGMENT: }{ \b\ul\lang1033\langfe2057\langnp1033\insrsid6446481 }{\lang1033\langfe2057\langnp1033\insrsid6446481\charrsid6446481 This}{ \lang1033\langfe2057\langnp1033\insrsid8524940\charrsid6446481 }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 is an appeal by a Tax payer whom the Ta}{\lang1033\langfe2057\langnp1033\insrsid15948781 x appeals Tribunal on 14/02/2001 }{ \lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 ordered to pay taxes, penalties and demurrage on a consignment of Body Care \line products it imported. The decree from which this appeal arises was to the effect that though the appellant had not authorised the clearing agent who had }{\lang1033\langfe2057\langnp1033\insrsid6446481\charrsid12913679 under declared}{ \lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 the goods, and was not responsible for his actions as such, he could not escape liabilities to pay the levies. The appellant ha}{\lang1033\langfe2057\langnp1033\insrsid6446481 d imported the }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 goods from South Africa which were properly cleared by an agent ATACO, who in the course of its declarations was found to have falsified invoices with the possible result that taxes would be evaded. The goods were seized. However, the of fence was compounded such that the goods were released on condition}{\lang1033\langfe2057\langnp1033\insrsid6446481 that certain fines were paid. }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12913679 {\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 In the appeal two grounds were formulated as }{ \lang1033\langfe2057\langnp1033\insrsid6446481\charrsid12913679 follows:}{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 - \line }{\lang1033\langfe2057\langnp1033\insrsid6446481 \par }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 1). That the Tribunal erred in law in holding that the appellant should bear the financial responsibility of the go}{\lang1033\langfe2057\langnp1033\insrsid6446481 ods in particular the penalty. }{\i\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 \line }{\i\lang1033\langfe2057\langnp1033\insrsid6446481 \par }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 2). The Tribunal erred in fact and law when it held that neither party was at fault and that each party should bear its own costs. \line }{\lang1033\langfe2057\langnp1033\insrsid15560570

\par }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 In its decision the Tax Appeals Tribunal stated that the self appointed agent ATACO was the person guilty of the offence, and that the appellant was in the circumstances not to be held vicariously liable. What I have to decide in this appeal is whether an owner of imported goods in respect of which a customs offence is c ommitted but for which it is not liable should nevertheless be made to pay penalties and storage charges arising from the}{\lang1033\langfe2057\langnp1033\insrsid15560570 commission of that offence }{ \lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 by that party not before court. The Tax Appeals Tribunal in making its decision stated }{\lang1033\langfe2057\langnp1033\insrsid15560570\charrsid12913679 that: -}{ \lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 \line }{\lang1033\langfe2057\langnp1033\insrsid15560570 \par }\pard \s15\ql \li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid15560570 {\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 \'935. Although not responsible in the s}{ \lang1033\langfe2057\langnp1033\insrsid15560570 ense indicated in No. (2) above }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 nevertheless the owner cannot escape the finan}{\lang1033\langfe2057\langnp1033\insrsid15560570 cial responsibility for his }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 goods vis a vis the respo}{\lang1033\langfe2057\langnp1033\insrsid15560570 ndent, he has to claim then by -}{ \lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 \line - paying the taxes due \line - paying the penalty and \line - paying the demurrage charges and costs, \line }{\i\lang1033\langfe2057\langnp1033\insrsid15560570 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid15560570 {\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 this having clearly exonerated the appellant from the actions of the agent ATACO. It is this statement of liability that has evoked this appeal. \line }{\lang1033\langfe2057\langnp1033\insrsid15560570 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid12913679 {\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 I do agree that it is the agent who committed the offence with the result 30 that the goods of the appellant were to be}{\lang1033\langfe2057\langnp1033\insrsid15560570 unlawfully impounded. After }{ \lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 impounding them the appellant had to pay the storage charges and recover them from the agent. However, when it comes to the penalty I do not think it is proper to penalise so meone for an offence for which another is independently guilty, or more accurately, liable to be charged }{\lang1033\langfe2057\langnp1033\insrsid15560570 with. Since the self appointed }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 agent committed an offence in his own right and the Tax Appeals Tribunal did not convict the appellant for it, the Ta x Appeals Tribunal could not properly condemn the importer, and the Appellant should collect the penalty directly from the agent. Similarly the importer should feel free to recover money that it pays for storage of the goods following their being unlawful l}{\lang1033\langfe2057\langnp1033\insrsid15560570 y impounded, from the }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 agent. In other words the agent faces the Uganda Revenue Authority for the offence he committed and also pays any penalty imposed against it and would also be liable to reimburse the importer for the costs of storage paid by the i mporter for storage of his goods. \line }{\i\lang1033\langfe2057\langnp1033\insrsid15560570 \par }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 In the result I would allow this appeal in part as related to the penalty w}{\lang1033\langfe2057\langnp1033\insrsid15560570 ith costs to the appellant. \line \par }{\b\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 R. O. OKUMU WENGI \line JUDGE \line 22/01/02. \line }{\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12913679 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid8524940\charrsid12913679 \par }}