Colgan Transport Limited v Commissioners of Customs and Excise

Facts

Colgan Transport Limited owned a Scania freight tractor unit, registration M707 NBE. On 1 March 2002 its driver, Mr Patrick Michael Colgan, was stopped by Customs Officers at the UK Control Zone freight terminal at Coquelles, France, driving the unit and drawing a hired trailer. He declared 800 cigarettes and a load of vodka in the trailer, but refused an informal interview because he was tired. The Accompanying Administrative Document named a consignee in Twickenham which was neither expecting the goods nor authorised to receive spirits under duty suspension, and no legitimate importer came forward; Customs concluded the document was a forgery. The vodka (17,292 litres, revenue value £126,836.82) and the vehicle were seized on 2 March 2002. The seizure was never challenged. The company sought return of the vehicle, saying it had no interest in the vodka and no reason to think the load illegitimate, and that continued detention was causing loss of business with hire purchase instalments of £395 per month still running. Officer Clapson offered restoration under section 152(b) of the Customs and Excise Management Act 1979 on payment of £13,925; on review under section 15 of the Finance Act 1994 Officer Harman reduced the fee to £9,975, the trade value of the unit. The company appealed under section 16 of the Finance Act 1994.