Whithead Machinery (Partnership) v Commissioners of Customs and Excise

Facts

Whitehead Machinery (Partnership) bought, sold, repaired and occasionally hired out used commercial vehicles. In June 2001 Mr Bown, a driver known to Mr Whitehead for some 25 to 30 years through their village and their trading dealings, telephoned wanting a lorry for what he described as international work in Italy. A hiring agreement dated 28 June 2001 was made between Whitehead Machinery and K J Trucking, a new haulage business said to be owned by Keith and Julie Baigent, Mr Whitehead having known Mr Baigent for five years or more; the hire was £500 plus VAT a week, with insurance to be provided by the hirer. The tractor and trailer were stopped by a Customs officer in the inward freight lanes at Eastern Docks, Dover, driven by Mr Bown, and the trailer was found to contain 12,600 litres of vodka. The vehicles were seized under section 141(1)(a) of the Customs and Excise Management Act 1979. Mr Whitehead requested restoration on 17 July 2001, and by letter of 2 August 2001 the Commissioners offered restoration only on payment of a £5,000 fee. The review requested was not completed within the 45-day period, so the decision was deemed upheld, and Whitehead Machinery appealed to the tribunal.