Specsavers Optical Group v Commissioners of Customs and Excise

Facts

The appellant, Specsavers Optical Group, claimed statutory interest from the Commissioners of Customs and Excise in connection with spectacles apportionment claims. The appeal followed an earlier decision of the same tribunal (VAT Decision 18025), released on 25 February 2003, which dismissed the appellant's first appeal. In that earlier decision the tribunal held that the appellant was not entitled to statutory interest under section 78 of the Value Added Tax Act 1994 for the period from 1 January 1994 until repayment; that the Commissioners had made no decision as to any entitlement to interest for the period before 1 January 1998 ("the earlier period"), so that the tribunal had no jurisdiction over that question; and, in case that jurisdictional view was wrong, it indicated that the appellant would in any event not have been entitled to interest for the earlier period. The appellant appealed to the High Court on both the substantive and jurisdictional aspects. To put matters beyond doubt, it invited the Commissioners to make a formal decision on the earlier period, and by letter dated 25 April 2003 Mr Bennett of the Commissioners confirmed that no statutory interest would be paid in respect of the spectacles apportionment claims submitted for 1996 and 1997. That letter is the decision under appeal. The parties requested that the appeal be determined on the papers without a hearing and expedited, and served skeleton arguments.