§ 14. Mr. Woodnuttasked the Chancellor of the Exchequer why, in view of the ruling in the High Court given by Mr. Justice Cross, the Commissioners of Customs and Excise refuse to repay purchase tax paid by Mr. R. Herbertson, of Shanklin, Isle of Wight, in respect of toffee apples manufactured and sold during the years 1962 to 1965 in the sum of £715 8s. 1d.
§ Mr. TaverneThe Commissioners are advised that the tax paid by Mr. Herbertson is not legally recoverable, and I can see no equitable basis upon which they could depart from the legal position.
§ Mr. WoodnuttDoes the hon. and learned Gentleman realise that the Commissioners are hiding behind the fact that there is a mistake in law so as not to pay? Is he telling me that a small retailer has to go through the Chancery Courts—as the big manufacturers did to get £4,000—before he can get back his £700?
§ Mr. TaverneI understand that the position of Mr. Herbertson is different from the case which was the subject of the Chancery Court ruling. Legally we are advised that we are not under any obligation to repay. As to equity, Mr. Herbertson passed on the tax to his customers and there is no way now in which we can give the benefit to the customers.
§ Mr. WoodnuttOn a point of order. In view of the unsatisfactory nature of that reply, I beg to give notice that I shall seek to raise this matter on the Adjournment at the earliest opportunity.