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 Decision

Legal Issues

1. 1 Whether the tribunal has jurisdiction to hear an appeal against HMRC's customs classification decision for maltodextrin
2. 2 Whether the appeal has a reasonable prospect of success if the sugar content of the imported 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 the appeal against HMRC's classification decision. However, if the sugar content (DE) of the imported maltodextrin exceeds 10%, it must be classified under Chapter 17 of the Tariff as per binding legal rules. The appeal has no reasonable prospect of success unless the appellant can provide evidence, by way of chemical analysis, that the sugar content does not exceed 10%.

Court Disposition

Appeal struck out, but suspension granted pending chemical analysis.

Orders

• The appeal is struck out effective 60 days from the date of the decision unless the appellant provides, within that period, independent chemical analysis showing the sugar content (DE) does not exceed 10%.
• Either party may apply to amend, suspend, or set aside the direction or for further directions.