Plasma Trading Limited v Her Majesty's Revenue & Customs

Facts

Plasma Trading Limited, a company run by directors Mr Lee Cummins and Mr Sam Cook, had been registered for VAT in July 2002, initially trading in plasma television screens, and in July 2003 changed its trade class to ferrous and non-ferrous metals. Between 21 January and 23 March 2004 it made nineteen purchases of what was described as secondary grade 85% platinum alloy in unmarked bars from Purplex 2000 Ltd, trading as London Construction (East) Co, and exported them by FedEx to Hexagone/Exagone Asia Limited in Hong Kong, turning over some £4.5 million in two months. The supply chain ran from Bosca & Co of Estonia, which used a hijacked VAT registration number belonging to British Gas Trading, through Bouvier Management Services Limited and London Construction to Plasma. By letter of 29 July 2004 the Commissioners refused Plasma's claim to input tax credit of £727,828.81 for period 03/04 under sections 24 and 26 of the Value Added Tax Act 1994, and assessed £60,284.81 wrongly recovered for period 01/04. Plasma appealed, contending the goods were genuine platinum alloy; a second notice of appeal against the assessment was filed after a hardship decision, and the Tribunal joined the two appeals at the outset of the hearing.