Supreme Court ruled that taxpayer Has the right to challenge a tariff determination in terms of the Customs and Excise Act 91 of 1964 (the CEA)

CSARS and Another v Richards Bay Coal Terminal (Pty) Ltd (1299/2021) [2023] ZASCA 39 (31 March 2023)

Customs and Excise Act 91 of 1964 – taxpayer not confined to the remedy of a wide appeal under s 47(9)(e) – can also review a tariff determination under the Promotion of Administrative Justice Act 3 of 2000, alternatively the principle of legality.

Richards Bay Coal Terminal (RBCT), registered for diesel rebate plan in 2009 and claimed rebates for the years 2009 to 2017. SARS investigated RBCT’s claims and in December 2017, demanded the company repay over R7 million because it was not for “qualifying activity”.

RBCT disagreed with SARS’s decision and wanted to appeal the decision and review it. RBCT requested the record of the tariff determination, which is the documentation used to make the decision. SARS refused to provide the record because RBCT did not have the right to review. The high court ruled that RBCT was allowed to request the record and have the decision reviewed. SARS disagreed and argued that RBCT did not need the record and that the decision should just be “correct”. This is wrong because the decision-making process should be transparent and accountable. The court ruled that taxpayers have both the right to appeal and to review decisions like these. In the end, the appeal was dismissed. 

Read the media summary here.