Logistika Peklaj A.S. DOO -v- Director of Border Revenue (No. 3) First-tier Tribunal Tax Chamber Decision

The application for a costs award made by ebl miller rosenfalck on behalf of Logistika Peklaj against the UK Border agency was granted by Judge Timothy Herrington at a recent hearing which took place before the First Tier Tax Tribunal in London.

This decision is the third occasion that the Tribunal have ruled in favour of the Slovenian Company in respect of decisions taken by the UK Border Agency in September 2012 and July 2012 not to restore a Tractor unit and Trailer belonging to the Company following the discovery of a quantity of tobacco that was being smuggled into the UK.

Following the second decision made by the Tribunal on 29 October 2013 the UK Border Agency finally restored Logistika’s vehicle free of charge the following month.

Given that it had been necessary for a second hearing to have taken place following the refusal by the UK border agency to restore the vehicle free of charge following the original ial hearing ebl miller rosenfalck made an application that the UK Border Agency pay the costs of the second hearing pursuant to Rule 10(1)(b) of the Tribunal Proceedings (First-Tier) Tax Chambers Rules 2009.

In order for the Tribunal to make a Costs Order in favour of the Slovenian Company it was necessary to persuade the Judge that the UK Border Agency’s representative had acted unreasonably.

The Judge was unequivocal in his decision that the UK Border Agency had not acted reasonably in continuing to defend the proceedings instituted by Logistika for the return of its vehicle and found that it’s decision to do so was “perverse”.

John Kenneally and Kevin Harrison advised Logistika Peklaj and instructed Mr Ben Douglas-Jones of 5 Paper Buildings to act on the Company’s behalf.

Logistika Peklaj AS v UK Border Agency [2012] UKFTT 355 (TC) (25 May 2012)

Logistika Peklaj AS v Director Of Border Revenue [2013] UKFTT 634 (TC) (29 October 2013)