Grattan Plc (No 2) v Commissioners for Her Majesty's Revenue and Customs

Facts

Grattan plc appealed to the First-tier Tribunal (Tax Chamber) against decisions of HMRC. By a decision released on 12 January 2011, [2011] UKFTT 31 (TC), the tribunal decided to refer to the Court of Justice of the European Union a question as to whether, for the period before 1 January 1978, taxable persons had a directly enforceable right under Article 8(a) of the Second Council Directive of 11 April 1967 (67/228/EEC) and/or the principles of fiscal neutrality and equal treatment to account for VAT by reference to the consideration actually received by the supplier. The tribunal also stayed the substantive question whether there is an EU law right to compound interest pending the CJEU's determination of the reference made by the High Court in Littlewoods Retail Limited v Revenue and Customs Commissioners, and decided to refer further questions of its own on the availability of remedies and the jurisdiction of the tribunal in respect of a compound interest claim. Judge Berner gave directions on 10 January 2011 for settling the form of the reference, and on 31 March 2011 refused HMRC permission to appeal to the Upper Tribunal against the decision to refer the compound interest jurisdiction questions. At the hearing on 8 April 2011, HMRC applied for a stay of the making of that reference pending determination of their permission application to the Upper Tribunal and any consequent appeal; Grattan resisted any stay.