3M South Africa (Pty) Ltd v Commissioner for the South African Revenue Services and Another (272/09) [2010] ZASCA 20

23rd March 2010

Summary: Customs and Excise Act 91 of 1964 - importer's entitlement to refunds and liability for arrear import duty arising from incorrect determination by Commissioner.


Order

On appeal from: The North Gauteng High Court, Pretoria (Louw J sitting as court of first instance):


1. The appeal is upheld to the following extent:

1.1 Paragraph 2 of the order of the high court is set aside and replaced with the following:

‘2.1 Prayer 3.2 of the notice of motion is dismissed together with the costs incurred in respect of the relief set out in that paragraph.

2.2 It is declared that the amount of customs duty (R3 598 971,70) and interest thereon (R1 890 959,72), demanded from the applicant in the first respondent's letter of demand dated 10 August 2007 (annexure FA27 to the founding affidavit) is not payable by the applicant to the first respondent.'

1.2 Paragraph 3.4 of the order of the high court is amended to read:

‘3.4 pay the applicant's costs incurred in respect of the relief set out in paragraphs 2.2, 3.1, 3.2 and 3.3 above, such costs to include the costs con­sequent upon the employ­ment of two counsel.'

2. The first respondent is ordered to pay the costs of the appeal, including the costs of two counsel.