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HB115-09 - TASMINE ENTERPRISES P/L vs ZIMBABWE REVENUE AUTHORITY

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Procedural Law-viz interim interdict.

Procedural Law-viz provisional order.
Tax Law-viz Notice of Embargo re customs duty.
Tax Law-viz Notice of Embargo re Customs and Excise Act [ Chapter 23:02].
Tax Law-viz Notice of Embargo re Value Added Tax Act [Chapter 23:12].
Tax Law-viz Notice of Embargo re unlawful disposal of embargoed goods iro section 192(1) of the Customs and Excise Act [Chapter 23:02].
Tax Law-viz customs duty re Notice of Seizure.
Procedural Law-viz urgent chamber application re exhausting internal remedies.
Procedural Law-viz urgent chamber application re exhausting domestic remedies.
Tax Law-viz customs duty re seizure iro section 193 of the Customs and Excise Act [Chapter 23:02].
Tax Law-viz seizure of goods re authority to institute civil proceedings against the taxing authority for the release of the seized goods iro section 193(12) of the Customs and Excise Act [Chapter 23:02].
Tax Law-viz seizure of goods re circumstances where an applicant is allowed to institute civil proceedings against the taxing authority for the  release of seized goods iro section 193(6)(a) of the Customs and Excise Act [Chapter 23:02].
Tax Law-viz instituting proceedings against the Zimbabwe Revenue Authority re mandatory prior notice period.
Tax Law-viz instituting proceedings against the State  re Zimbabwe Revenue Authority iro section 196(1) of the Customs and Excise Act [Chapter 23:02].

Customs and Excise Duty, Smuggling and Unlawful Import and Export of Goods re: Impound, Embargo, Seizure and Forfeiture

On the 7th September 2009, I dismissed the application with costs and indicated that my reasons for doing so will follow. These are my reasons.

The background facts are the following.

On 22 May 2007, the applicant imported 8,812 kilogrammes of blankets from Botswana, and paid clearance charges. The blankets were transferred to the applicant's premises in Bulawayo. On 13 May 2009, the respondent's officers visited the applicant's premises in the course of their duties. These officers issued a Notice of Embargo on the blankets imported by the applicant pending the production of customs clearance documents in terms of the Customs and Excise Act [Chapter 23:02] and the Value Added Tax Act [Chapter 23:12].

The blankets the subject of the embargo were -

42 bales (2kg*25) blankets;

66 bales (2kg*25) blankets; and

40 bales (4.5 kg*10) blankets.

The applicant produced the required documents for examination by the Zimbabwe Revenue Authority.

The goods were placed on receipt of items held on 3 July 2009 when the Zimbabwe Revenue Authority realized that the applicant was disposing of the embargoed goods in contravention of section 192 (1) of the Customs and Excise Act [Chapter 23:02].

There was communication then between the parties involving the goods, as the applicant battled to prove that the goods were properly cleared. The last such meeting and communication was on 3 August 2009 when the Regional Manager of the respondent, Mr.P.C.Dube, had a meeting with the representatives of the applicant.

The goods were placed on seizure on the same date, and Notices of Seizure were given to the applicant's representatives, after it had been established that the applicant has failed to prove that it had properly cleared the goods in question. The applicant was advised of the discrepancies in the weight of the blankets.

The applicant was also advised that the 2007 bill of entry and its attachments could not be accepted as proof of importation of the blankets that were on embargo.

Jurisdiction re: Domestic, Internal or Local Remedies

The respondent raised two points in limine.

The first one was the failure to exhaust internal or domestic remedies provided by law before the applicant approached this court.

The goods in question, in casu, were seized by the respondent in terms of section 193 of the Customs and Excise Act [Chapter 23:02]. When the goods are seized thus, the owner, or possessor, thereof, will have to make representations for their release should they want to have their goods back. The office who seized the goods will then make his/her own report to the Commissioner of the respondent in terms of section 193(5) of the Customs and Excise Act [Chapter 23:02]. The applicant's representations, as well as the report by the officer, are then submitted to the Commissioner, who will then have to make a decision to either release, or declare forfeit, the goods in question in terms of section 193(6) of the Customs and Excise Act [Chapter 23:02].   

A Notice of Seizure was issued on 3 August 2009.

No representations were made by the applicant herein to enable the respondent's Commissioner to make a decision in terms of section 193(6) of the Customs and Excise Act [Chapter 23:02]. The applicant has, instead, made a civil suit for the release of the goods in question (this is provided for in section 193(12) of the Customs and Excise Act [Chapter 23:02]).

The said section 193(12) of the Customs and Excise Act [Chapter 23:02], however, only allows the applicant to institute civil proceedings where the Commissioner has refused to release the seized goods in terms of section 193(6)(a) of the Customs and Excise Act [Chapter 23:02].

This, therefore, means the applicant cannot make the application where the Commissioner has not yet made a decision on whether to release the goods or not.

So, besides the applicant instituting civil proceedings before the Commissioner has made a decision on the fate of the goods, it has also made the application without giving the requisite notice as required by the Customs and Excise Act [Chapter 23:02].

For this reason alone, the application has to fail without even considering the second point in limine...,.

Cause of Action re: Suits or Proceedings Against the State, State Agents and Statutory Notice of Intention to Sue


In any event, any such institution of proceedings has to be done after sixty (60) days notice has been given to the respondent of the applicant's intention to institute civil proceedings in terms of section 196(1) of the Customs and Excise Act [Chapter 23:02].

NDOU J:          On the 7th September 2009 I dismissed the application with costs and indicated that my reasons for doing so will follow.  These are my reasons.  The background facts are the following.  On 22 May 2007, the applicant imported 8 812 kilograms of blankets from Botswana and paid clearance charges.  The blankets were transported to the applicant's premises in Bulawayo.  On 13 May 2009, respondent's officers visited applicant's premises in course of their duties.  These officers issued a Notice of Embargo on the blankets imported by the applicant pending the production of customs clearance documents in terms of the Customs and Excise [Chapter 23:02] and the VAT Act [Chapter 23:12].  The blankets subject the embargo were:

            42 bales (2kg x 25) blankets

            66 bales (2kg x 25) blankets, and

            40 bales (4,5kg x 10) blankets.

            The applicant produced the required documents for examination by ZIMRA.  The goods were placed on receipt of items held on 3 July 2009 when ZIMRA realized that the applicant was disposing of the embargoed goods in contravention of section 192(1) of the Customs & Excise Act supra.  There was communication then between the parties involving the goods as the applicant battled to prove that the goods were properly cleared.  The last such meeting and communication was on 3 August 2009 when Regional Manager of the respondent Mr P C Dube had a meeting with representatives of the applicant.  The goods were placed on seizure on the same date and Notices of Seizure were given to applicant's representatives after it had been established that the applicant has failed to prove that it had properly cleared the goods in question.  The applicant was advised of the discrepancies in the weight of the blankets.  Applicant was also advised that the 2007 bill of entry and its attachments could not be accepted as proof of importation of the blankets that were on embargo.

            The respondent raised two points in limine.  The first one was failure to exhaust internal or domestic remedies provided by law before the applicant approached this court.  The goods in question, in casu, were seized by the respondent in terms of section 193 of the Customs and Excise Act, supra.  When the goods are seized thus the owner or possessor thereof will have to make representations for their release should they want to have their goods back.  The office who seized the goods will then make his/her own report to the Commissioner of the respondent in terms of section 193(5) of the Act.  The applicant's representations as well as the report by the officer are then submitted to the Commissioner who will then have to make a decision to either release or declare forfeit the goods in question in terms of section 193(6) of the Act.  A Notice of Seizure was issued on 3 August 2009.  No representations were made by the applicant, herein to enable the respondent's Commissioner to make a decision in terms of section 193(6) supra.  The applicant has instead made a civil suit for the release of the goods in question [This is provided for in section 193(12)].  The said section 193(12), however, only allows the applicant to institute civil proceedings where the Commissioner has refused to release the seized goods in terms of section 193(6)(a).  This therefore means the applicant cannot make the application where the Commissioner has not yet made a decision on whether release the goods or not.

            In any event any such institution of proceedings has to be done after sixty (60) notice has been given to the respondent of the applicant's intention to institute civil proceedings in terms of section 196 (1) of the Act.  So besides the applicant instituting civil proceedings before the Commissioner has made a decision on the fate of the goods, it has also made the application without giving the requisite notice as required by the Act.

            For this reason alone the application has to fail without even considering the second point in limine as the merits of the application.

 

 

 

Sansole & Senda, applicant's legal practitioners

Coghlan & Welsh, respondent's legal practitioners
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