Murray T/A Tom Murray Garden Machinery v Revenue Commissioners
| Jurisdiction | Ireland |
| Judge | Mr. Justice Michael White |
| Judgment Date | 07 February 2012 |
| Neutral Citation | [2012] IEHC 53 |
| Court | High Court |
| Date | 07 February 2012 |
[2012] IEHC 53
THE HIGH COURT
BETWEEN
AND
FINANCE ACT 2001 S127
FINANCE ACT 1992 PART II CHAP IV
FINANCE (NO 2) ACT 1992
FINANCE ACT 1992 S130
FINANCE ACT 1992 S131
FINANCE ACT 1992 S131(3)(A)
FINANCE ACT 1992 S131(3)(B)
FINANCE ACT 1992 S142(2)(A)
FINANCE ACT 1992 S142(2)(B
FINANCE ACT 1992 S142(3)(B)
FINANCE ACT 1992 S139(3)(E)
FINANCE ACT 2001 S140
FINANCE ACT 2001 S141
FINANCE ACT 2001 S142
FINANCE ACT 2001 S143
VEHICLE REGISTRATION & TAXATION REGS SI 318/1992
FINANCE ACT 2001 S127
RSC O.19 r 3
BULLEN & ORS BULLEN & LEAKE & JACOBS PRECEDENTS & PLEADINGS 12ED 1975 CHAP 4 34
BULLEN & ORS BULLEN & LEAKE & JACOBS PRECEDENTS & PLEADINGS 12ED 1975 CHAP 4 38
KARSALES (HARROW) LTD v WALLIS 1956 1 WLR 936 1956 2 AER 866
MCGRATH v MCDERMOTT 1988 IR 258
FINANCE ACT 1992 S131(8)
DEVANNEY v DISTRICT JUDGE SHIELDS & ORS 1998 1 IR 230
REVENUE
Vehicle registration tax
Condemnation of vehicle - Detention and seizure of motorised vehicle - Claim for damages - Counterclaim for forfeiture - Change of use - Failure to declare conversion - Definition of mechanically propelled vehicle - Pleadings - Statutory interpretation - Whether vehicle liable for vehicle registration tax - Whether correct registration tax paid - Whether vehicle improperly seized - Karsales (Harrow) Ltd v Wallis [1956] 1 WLR 936; McGrath v McDermott [1988] IR 258 and Devanney v Shields [1998] 1 IR 251 considered - Finance Act 2001 (No 7), ss 127, 140, 141, 142 and 143 - Finance Act 1992 (No 9), ss 130, 131, 136, 139 and 142 - Finance (No 2) Act 1992 (No 28) - Vehicle Registration and Taxation Regulations 1992 (SI 318/1992) - Finance Act 2009 (No 12), s 127 - Rules of the Superior Courts 1986 (SI 15/1986), O 19, r 3 - Plaintiff's claim dismissed and forfeiture directed (2010/3230P - White J - 7/2/2012) [2012] IEHC 53
Murray v Revenue Commissioners
Facts The plaintiff herein sought damages from the defendant for the detention and seizure pursuant to s. 140(4) and 141(1) of the Finance Act, 2001 of the plaintiff's vehicle. The defendants denied the claim and counterclaimed for an order pursuant to s. 127 of the Finance Act 2001 for the forfeiture of the vehicle. The plaintiff had purchased the relevant vehicle from a company in Northern Ireland and the company converted the vehicle from a passenger vehicle to a commercial vehicle. The vehicle was imported into the Republic of Ireland and a declaration was signed by an official of the defendants certifying that the vehicle had been converted to category C in accordance with s. 130 of the Finance Act 1992 and S.I. 318 of 1992. The vehicle was duly registered and vehicle registration tax was paid in accordance with the rate for commercial vehicles. However, the vehicle was taxed as a private vehicle. Within a period of four weeks thereafter, the vehicle was converted again to carry passengers. The vehicle was used in the course of the plaintiff's business on construction sites and landscaping projects and also on public roads. The vehicle was detained, having been stopped at a routine Garda/customs checkpoint on the grounds that it was registered as a commercial vehicle (category C) but was being used as a private vehicle (category A). The vehicle was subsequently seized on those grounds. The plaintiff's solicitors had objected to the seizure of the vehicle submitting that it was improperly seized on the grounds that the vehicle was designed and constructed for off road use and in accordance with s. 130 of the Finance Act 1992, at the time of its conversion from commercial to passenger use it was not subject to vehicle registration tax. The defendant was not satisfied that the plaintiff's vehicle was designed and constructed for off road use within the meaning of s. 130 of the Act of 1992.
Held by White J. in rejecting the plaintiff's claim and directing forfeiture of the plaintiff's mechanically propelled vehicle: That in interpreting the definition of 'mechanically propelled vehicle' contained within s. 130 of the Finance Act 1992, the court must look at the definition as a whole. The plaintiff cannot import a vehicle, register it as a commercial vehicle, pay the low amount of vehicle registration tax, tax the vehicle as a private vehicle and have the vehicle converted again to a private vehicle without making a declaration to that effect to the defendants. By changing the vehicle back to the category A designation, the plaintiff fell foul of the law and was in breach of the Act. The opinion of the defendant's official that the vehicle had been converted to category C in accordance with s. 130 of the Finance Act 1992 and S.I. 318 of 1992 was expressed at the time the vehicle was registered as a category C commercial vehicle. Consequently, the vehicle had to be a mechanically propelled vehicle. The defendant was entitled to rely on the actions of its official as the opinion of the corporate body.
Reporters: LO'S
JUDGMENT of Mr. Justice Michael White delivered on the 7th day of February 2012
1. This is an action claiming damages for the detention and seizure of a Mercedes ML420 CDi vehicle 07 WX 2044. The vehicle was detained at Moone, Co. Kildare on 26 th March, 2009 and seized on 15 th April, 2009 pursuant to s. 140(4) and 141 (1) of the Finance Act 2001.
2. The plaintiff claims damages for the value of the vehicle at date of seizure, which is agreed at €55,000. The defendants deny the claim and have counterclaimed for an order pursuant to s. 127 of the Finance Act 2001, for forfeiture. The action was heard on 8 th and 9 th December, 2011. The court permitted further written submissions up to 13 th January, 2012. Further submissions were delivered by the plaintiff and defendants by that date.
3. Chapter IV of Part II of the Finance Act 1992, as amended, by the Finance (No. 2) Act 1992, established a new duty on motor vehicles known as vehicle registration tax, and provided for a new system of registration.
4. A mechanically propelled vehicle is defined in Section 130. It states:-
"mechanically propelled vehicle" means a vehicle intended or adapted for propulsion by a mechanical means, including -
(a) a bicycle, tricycle or quadricycle propelled by an engine or motor or with an attachment for propelling it by mechanical power, whether or not the attachment is being used, a moped, a scooter and an autocycle, and
(b) a vehicle the means of propulsion of which is electrical or partly electrical and partly mechanical,
but not including a tramcar or other vehicle running on permanent rails or a vehicle as respect which the Commissioners are satisfied that it is designed or constructed for off-road use (other than racing vehicles, scrambling vehicles or other sporting vehicles)"
5. The Act defines a number of categories of vehicle, category A is a passenger vehicle and category C is a commercial vehicle.
6. Section 131 of the Act provides for a register to be maintained by the Revenue Commissioners. Apart from a temporary exemption from registration specified in s.135 and authorisation to manufacturers, distributors and dealers set out in s. 136, all the vehicles in the State or imported into the State from 1 st January, 1993 were subject to registration. On registration each vehicle is designated by category.
7. Pursuant to the provisions of Section 131 (3) (a) and (b ) the owner of a vehicle which was converted in accordance with the definition in s. 130 has a duty to deliver to the Revenue Commissioners a declaration in relation to the conversion.
8. Vehicle registration tax is payable on registration, a small amount for a commercial vehicle but a substantial amount for a category A vehicle.
9. Section 142(2)(a) and(b) permits an officer of the Revenue Commissioners to stop vehicles and request the person in charge of the vehicle to provide certain information.
10. Section 142(3)(b) allows an officer of the defendants on reasonable suspicion, of a vehicle being converted and a declaration not having been made pursuant to s. 131 to detain the vehicle for further examination.
11. Section 139(3)(ee) states:-
2 "(1) It shall be an offence under this subsection for a person, in respect of a vehicle in the State
a '(ee) to be in possession of the vehicle if it is a converted vehicle in relation to which particulars of the conversion have not been declared in accordance with section 131 or a converted vehicle in relation to which particulars of the conversion have been so declared but vehicle registration tax has not been paid on the declaration unless he is an authorised person.
12.Sections 140, 141, 142, and 143 of the Finance Act 2001 deals with the detention of goods and vehicles, their seizure, notice of seizure, and notice of claim.
13. On 17 th January, 2007 the plaintiff purchased from MC Import Export Services Limited, Crumlin, Co. Antrim, Northern Ireland a new Mercedes ML420 CDi.
14. It was a passenger vehicle for a driver and four passengers. It was converted from a passenger vehicle to a commercial vehicle by the company who charged €1,500 for this service. The vehicle was imported from Northern Ireland into the Republic of Ireland through the vehicle registration office at Monaghan. A declaration of 23 rd January, 2007, signed by N. O'Mahony an official of the defendants certified that the vehicle had been converted to category C in accordance with s. 130 Finance Act 1992 and S.I. 318 of 1992. The vehicle was registered in the Republic of Ireland On import the rate of vehicle registration tax applicable to...
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