Applied Nutrition Ltd v Revenue and Customs (CUSTOMS DUTY AND VAT - strike out application by HMRC - importation of maltodextrin - HMRC decision to give it a commodity code under Ch 17 of the Tariff - appeal on grounds it contains no sugar and should be classified under Ch 19 - decision appealable - tribunal jurisdiction - reasonable prospect of success? - only if sugar content is less than 10% - appeal struck out but suspended pending chemical analysis - directions given) [2025] UKFTT 97 (TC) (03 February 2025)

Parties

Procedural Posture

Tax Appeal (first Tier Tribunal, Tax Chamber) / Strike Out Application (interlocutory)

Legal Issues

1. 1 Whether the tribunal has jurisdiction to hear an appeal against HMRC's commodity code classification decision for imported maltodextrin
2. 2 Whether the appeal has a reasonable prospect of success if the sugar content of the maltodextrin exceeds 10%
3. 3 Whether the correct commodity code for the imported maltodextrin is under Chapter 17, 19, or 35 of the UK Tariff

Ratio Decidendi

The tribunal has jurisdiction to hear an appeal against HMRC's commodity code classification decision. However, if the sugar content of the imported maltodextrin exceeds 10%, the law requires classification under Chapter 17 of the Tariff. The appellant's prospects of success are realistic only if it can provide evidence that the sugar content does not exceed 10%.

Court Disposition

Appeal struck out, but suspension of strike out for 60 days pending provision of chemical analysis evidence by appellant.

Orders

• The appeal is struck out on a date falling 60 days after the date of this decision unless, before that date, the appellant provides to HMRC prima facie evidence by way of a chemical analysis from an independent expert that the goods had a sugar content (DE) not exceeding 10%.
• Either party may apply for the Direction to be amended, suspended or set aside or for further Directions.