Keary & Anor v The Director of Border Revenue & Anor [2014] UKFTT 1114 (TC) (23 December 2014)

Keary & Anor v The Director of Border Revenue & Anor [2014] UKFTT 1114 (TC) (23 December 2014)

The Tribunal is bound by Jones and Race: where the seizure of goods is not challenged in condemnation proceedings, the goods are deemed forfeited as illegally imported, and the Tribunal cannot consider arguments that the goods were for personal use in appeals against excise duty or penalty. Appeals against excise duty assessments must be struck out for lack of jurisdiction or no reasonable prospect of success. However, appeals against penalties and refusal to restore the vehicle may proceed as they raise issues (such as special circumstances or reasonableness of the restoration decision) that are within the Tribunal's jurisdiction.

Citation
[2014] UKFTT 1114 (TC)
Parties
First Appellant: Michael Keary; Second Appellant: Sharon Lakin; First Respondent: The Director of Border Revenue; Second Respondent: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
23 December 2014
Procedural Posture
Excise Duty and Penalty Appeals; Application to Strike Out / Interlocutory Decision on Strike Out Applications
Outcome
Appeals against excise duty assessments struck out; appeals against penalties and refusal to restore vehicle not struck out
Legal Topics
Excise Duty Assessments, Restoration of Seized Goods, Penalties for Unpaid Excise Duty, Jurisdiction of First Tier Tribunal, Condemnation Proceedings, Special Circumstances in Penalty Mitigation
Tax Law Customs and Excise Law Excise Duty Assessments Restoration of Seized Goods Penalties for Unpaid Excise Duty Jurisdiction of First Tier Tribunal Condemnation Proceedings Special Circumstances in Penalty Mitigation

Case Brief

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Parties

Michael Keary

First Appellant

Sharon Lakin

Second Appellant

The Director of Border Revenue

First Respondent

The Commissioners for Her Majesty’s Revenue & Customs

Second Respondent

Procedural Posture

Excise Duty and Penalty Appeals; Application to Strike Out / Interlocutory Decision on Strike Out Applications

Legal Issues

  1. 1 Whether the First-tier Tribunal has jurisdiction to consider appeals against excise duty assessments and penalties where the underlying seizure was not contested in condemnation proceedings
  2. 2 Whether appeals against refusal to restore a vehicle and against penalties should be struck out for lack of jurisdiction or no reasonable prospect of success

Ratio Decidendi

The Tribunal is bound by Jones and Race: where the seizure of goods is not challenged in condemnation proceedings, the goods are deemed forfeited as illegally imported, and the Tribunal cannot consider arguments that the goods were for personal use in appeals against excise duty or penalty. Appeals against excise duty assessments must be struck out for lack of jurisdiction or no reasonable prospect of success. However, appeals against penalties and refusal to restore the vehicle may proceed as they raise issues (such as special circumstances or reasonableness of the restoration decision) that are within the Tribunal's jurisdiction.

Court Disposition

Appeals against excise duty assessments struck out; appeals against penalties and refusal to restore vehicle not struck out

Orders

  • Appeals of Mr Keary and Ms Lakin in relation to excise duty assessments are struck out under rule 8(2)(a) and rule 8(3)(c) of the FTT Rules.
  • Appeals against penalties and refusal to restore the vehicle are to proceed.