HC Deb 03 August 1978 vol 955 cc619-20W
Mr. Trotter

asked the Chancellor of the Exchequer why Her Majesty's Customs and Excise sought their costs before the value added tax tribunal in the case of Raulins, Davy and Wells when the appellant, although unsuccessful, was considered by the tribunal to have brought the case from entirely proper motives on a point not previously considered by tribunals.

Mr. Denzil Davies

Customs and Excise took into account that the amount of tax involved in the appeal was £18.65, that the appellants were registered for VAT and were able to recover the whole amount as input tax, and that the Department had throughout been put to disproportionate expense in a matter where there was no net tax at stake. In the circumstances Customs and Excise concluded that it would not be appropriate for their costs to be borne in full by the general body of taxpayers.

Whether or not costs should be awarded in a particular case, and the amount of any such award, is, of course, a matter entirely within the discretion of the independent VAT tribunal.