Trapps Cellars Ltd v Revenue & Customs [2014] UKFTT 326 (TC) (01 April 2014)

Trapps Cellars Ltd v Revenue & Customs [2014] UKFTT 326 (TC) (01 April 2014)

The Tribunal held that the Sheldon statement did not apply because the case was substantial, complex, involved large sums, and was akin to High Court proceedings. The appellant was on notice from early correspondence that HMRC would seek costs, and both parties should have known the open costs regime applied. Therefore, HMRC was entitled to its reasonable costs on the standard basis.

Citation
[2014] UKFTT 326
Parties
Appellant: Trapps Cellars Limited; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
01 April 2014
Procedural Posture
Excise Duty Appeal (costs Application) / Post Judgment Costs Determination After Dismissal of Substantive Appeal
Outcome
Costs awarded to HMRC on the standard basis, to be assessed by a costs judge of the High Court.
Legal Topics
Excise Duty, Costs, Tribunal Procedure, Sheldon Statement, VAT Tribunal Rules
Tax Law Administrative Law Excise Duty Costs Tribunal Procedure Sheldon Statement VAT Tribunal Rules

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Parties

Trapps Cellars Limited

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Excise Duty Appeal (costs Application) / Post Judgment Costs Determination After Dismissal of Substantive Appeal

Legal Issues

  1. 1 Whether HMRC is entitled to costs following dismissal of the appellant's excise duty appeal
  2. 2 Whether the Sheldon statement applies to preclude a costs award against the appellant
  3. 3 Whether the parties' reasonable expectations or conduct affect the costs award

Ratio Decidendi

The Tribunal held that the Sheldon statement did not apply because the case was substantial, complex, involved large sums, and was akin to High Court proceedings. The appellant was on notice from early correspondence that HMRC would seek costs, and both parties should have known the open costs regime applied. Therefore, HMRC was entitled to its reasonable costs on the standard basis.

Court Disposition

Costs awarded to HMRC on the standard basis, to be assessed by a costs judge of the High Court.

Orders

  • HMRC awarded their reasonable costs in the appeal on the standard basis, to be assessed by a costs judge of the High Court.