Trapps Cellars Ltd (in liquidation) v Revenue & Customs [2014] UKFTT 149 (TC) (11 November 2013)

Trapps Cellars Ltd (in liquidation) v Revenue & Customs [2014] UKFTT 149 (TC) (11 November 2013)

The Tribunal held that the diversion of goods after leaving the appellant’s warehouse did not constitute 'losses' within the meaning of the fortuitous event exemption under Article 14(1) of Directive 92/12/EEC. The exemption applies only to losses arising from events such as accident or force majeure, not to diversions resulting from criminal activity or lack of due diligence. Article 20(1) is limited to detections made during the course of a movement; as the irregularity was not detected during movement, Article 20(3) applied, making the UK the place of the duty point. The appellant failed to carry out adequate due diligence or SEED checks and did not establish that the goods arrived at...

Citation
[2014] UKFTT 149 (TC)
Parties
Appellant: Trapps Cellars Limited (in liquidation); Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
11 November 2013
Procedural Posture
Tax Appeal (excise Duty Assessment) / First Tier Tribunal (tax Chamber) Substantive Decision
Outcome
Appeal dismissed
Legal Topics
Excise Duty Liability, Warehousekeeper's Liability, Diversion of Goods in Bond, Interpretation of Directive 92/12/eec Article 14 and 20, Fortuitous Event Exemption, Movement Guarantees, Due Diligence Obligations, SEED Database Checks
Tax Law Customs and Excise Law European Union Law Excise Duty Liability Warehousekeeper's Liability Diversion of Goods in Bond Interpretation of Directive 92/12/eec Article 14 and 20 Fortuitous Event Exemption +3 more

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Parties

Trapps Cellars Limited (in liquidation)

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Appeal (excise Duty Assessment) / First Tier Tribunal (tax Chamber) Substantive Decision

Legal Issues

  1. 1 Whether the diversion of goods after leaving the appellant’s warehouse constituted 'losses' within the meaning of the fortuitous event exemption under Article 14(1) of Directive 92/12/EEC
  2. 2 Whether Article 20(1) of Directive 92/12/EC is limited to detections made during the course of a movement
  3. 3 Whether the appellant’s liability is limited by the amount of its movement guarantee

Ratio Decidendi

The Tribunal held that the diversion of goods after leaving the appellant’s warehouse did not constitute 'losses' within the meaning of the fortuitous event exemption under Article 14(1) of Directive 92/12/EEC. The exemption applies only to losses arising from events such as accident or force majeure, not to diversions resulting from criminal activity or lack of due diligence. Article 20(1) is limited to detections made during the course of a movement; as the irregularity was not detected during movement, Article 20(3) applied, making the UK the place of the duty point. The appellant failed to carry out adequate due diligence or SEED checks and did not establish that the goods arrived at...

Court Disposition

Appeal dismissed

Orders

  • The appeal against the excise duty assessments is dismissed.
  • The appellant is liable for the assessed excise duties in respect of the Serio and MTB consignments.