Frametech Ltd v Her Majesty's Revenue & Customs

Facts

Frametech Ltd, a Bristol company based in Flowers Hill, Brislington, appealed against a decision of the Commissioners for Her Majesty's Revenue and Customs requiring it to give security, in the sum of £30,400, before being allowed to make taxable supplies of goods or services for the purposes of value added tax. The grounds of appeal were that the requirement was unreasonable given the company's VAT payment record, and that the sum demanded was excessive. The appeal was listed for hearing in Cardiff on a date agreed with the appellant's solicitors, Beachcroft Wansbroughs, but neither the company nor its solicitors attended. Neither the tribunal clerk nor the officer representing the Commissioners had been able to obtain any reply to recent telephone calls, and the tribunal adjourned for fifteen minutes in case of a late response. The tribunal was then told that a fax had been sent the previous afternoon to the office of the officer appearing for the Commissioners indicating that the client had decided to withdraw, and asking the officer to arrange for the tribunal to be advised; no copy was then available, and nothing had been sent to either the Cardiff or the London tribunal centre. With the Commissioners represented, their papers complete and three witnesses present, the tribunal proceeded in the appellant's absence.