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Greenalls Management Ltd operated a bonded warehouse in Warrington, and in which it stored 250,000 bottles of vodka made in Warrington. The vodka was released in batches for delivery to bonded warehouses in Spain and Belgium. Confirmation of receipt was sent, but these documents were forged, and the goods were illegally diverted elsewhere.
Greenalls Management Ltd operated a bonded warehouse in Warrington, and in which it stored 250,000 bottles of vodka made in Warrington. The vodka was released in batches for delivery to bonded warehouses in Spain and Belgium. Confirmation of receipt was sent, but these documents were forged, and the goods were illegally diverted elsewhere.
Although it was accepted that the taxpayer was entirely innocent and had taken all reasonable precautions to ensure that the goods reached their proper destinations, Customs issued two assessments, claiming that the taxpayer was liable to pay duty on the diverted vodka. The taxpayer appealed to the tribunal, which agreed with Customs, so the taxpayer appealed to the High Court.
Mr Justice Jacob said that the tribunal was wrong to say that goods were not delivered for export, unless and until they actually were exported. Regulation 9(2) of the Excise Goods (Holding, Movement, Warehousing and REDS) Regulations 1992 permitted excise goods to be removed in duty suspension from a tax warehouse, and this was echoed in Regulation 4(f)(ii). The judge referred the case back to the tribunal to reconsider in the light of the detailed relevant facts.
(Greenalls Management Ltd v Commissioners of Customs and Excise, Chancery Division, 8 August 2002.)
