Eatough v Revenue & Customs

Appeal against assessment to excise duty � whether assessment lawfully raised � whether review decision upholding assessment is reasonable

Mr S. Redpath, Counsel instructed by the General Counsel and Solicitor to HM Revenue and Customs, for the Respondents

The Appellant appeals against an assessment to excise duty dated 8 April 2009 in the sum of �40,181 for the period 1 July 2008 to 10 October 2008. Following a statutory review dated 1 October 2009, HMRC upheld the assessment.

The Appellant was, at the relevant time, a Director of Dexter Paints Limited (�DPL�) which manufactured industrial paints, Dexter Biofuels Limited and Dexter Paint Holdings Limited. In 2008, DPL invested in plant and premises for the production of bio-diesel, which commenced in early 2008 and ceased in August 2008. The Company operated under the guidance of an insolvency practitioner from 23 September 2008 until 23 October 2008, following which it was placed into Administration which concluded in April 2010 when the Company was divided up and sold in respective parts.

The returns for payment of excise duty on bio-diesel produced for the quarters ending September and December 2008 were not filed. As a result, HMRC officer Ms Havard met the Appellant and another former Director, Mr Alan Sharples, at the Company�s premises on 31 March 2009. Records relating to the Company�s production and sales of bio-diesel were produced by the former Directors as a result of which Ms Havard was able to calculate DPL�s liability to duty.