The Vintry v Her Majesty's Revenue & Customs

Facts

The appellant traded as The Vintry, the trading name of The Vintry Wine Company Limited, a small UK wine merchant with a turnover at the relevant time of about £500,000 a year, which produced a loss in 2004 and a small profit in 2005. For some years it had exported wine to customers in the Republic of Ireland who ordered direct from it. Before it began selling into Ireland, the shippers it engaged — a large and respectable company — advised that where UK duty had been paid the wine could be exported to Ireland without payment of Irish duty. That advice proved wrong. When the Irish authorities became aware of the sales they claimed duty for the three years preceding their assessment and imposed a penalty of 15%, the duty and penalty together amounting to €24,271.28. The appellant then claimed drawback of the UK excise duty it had paid, the claim being made on 31 May 2005 and the sum in dispute being approximately £11,800. The Commissioners refused the claim by an email of 21 July 2005 on the sole ground that prior notice of export had not been given as required by regulation 8 of the Excise Goods (Drawback) Regulations 1995, and upheld that refusal on review dated 5 September 2005. The appellant appealed to the Tribunal.