Explorator Lose Container Tax Case: Appeal to be Lodged
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H0NITON magistrates last week fined Explorator, Ltd., Lowestoft, 110 with 112 costs for using an insulated container, as part of a vehicle for which a higher rate of duty should have been paid under Section 13(2) of the Vehicles (Excise) Act, 1949. An appeal is to be made against the decision.
The vehicle, an Austin petrol-engincd model based at the company's Wokingham depot, was stopped by the police on October 5. 1953, and taken to a weighbridge. The weight of the vehicle was found to be 4 tons 3 cwt. with the container and 3 tons without it.
It was stated that the container was used for carrying fish, although at the time of the police check it held only empty trays. Each container on the company's vehicles was easily removable and interchangeable for purposes of repair, maintenance and cleaning. The container in question had been removed at least once during the current licensing period.
Mr. H. Heathcote-Williams, Q.C., for the defendants claimed that the vehicle was brought by its use within the wording of paragraph (b) to the proviso to Section 26 of the Act, which dealt with the computation of the weight of vehicles. This paragraph exempted from inclusion in the weight containers "constructed or adapted for the purpose of being. lifted on or off the vehicle with goods or burden contained therein" and which were "from time to time actually used for that purpose in the ordinary course of business."
No Business Process The chairman said that the removal of the container from the vehicle was a matter of convenience for the defendants and not a process used in connection with their business as carriers of fish.
Our legal correspondent writes: This decision may be contrasted with that of Taunton magistrates reported in The Commercial Motor of November 20, 1953. On similar facts, a summons against the Eldorado Ice Cream Co., Ltd., under the same section of the Vehicles (Excise) Act, 1949, was dismissed.
' There the magistrates evidently accepted the contention of the defence that even if the only occasions on which the container were removed were for purposes of repair or maintenance to either the container of the vehicle itself, such removal was a "use in the ordinary course of business."
It was pointed out in editorial comment that such a decision was giving the widest and most favourable interpretation to these words and that there was no guarantee that another court might not follow the narrower interpretation. This the Honiton magistrates have now done.
When the Divisional Court hear the appeal, they may hide behind the screen of saying that it is all a question of fact for the justices and not one of law. Not Only is the question of taxation involved, but also that of whether the container vehicles are brought within the ').0 m.p.h. limit.
Alan Smith writes: This was a lest case, The Honiton magistrates were aware of the Taunton decision, but whichever way their deliberations had gone, an appeal would, I understand, have been made. Many operators are affected and support from national organizations is likely to be attracted.
The question of speed limit, however, transcends that of taxation. Although I refrained from dealing with undecided legal aspects of Explorator's use of containers in my article in the March 12 issue, readers will gather that if the company's vehicles become subject to a 20 m.p.h. restriction, the basis upon which a rapid distribution system has been built will be critically affected.
VEHICLE BUILDERS MEET MINISTRY OFFICIALS THE deadlock on pay negotiations between the employers and three unions representing some 40,000 workers in the vehicle-building industry was discussed with Ministry of Labour officials by representatives of the employers in London last week.
As reported in The Commercial Motor on March 5, the unions have asked the Minister for the assistance of conciliation officers in the dispute.
After consulting their constituent members the employers are to communicate with the Ministry again.
ROYAL TIGERS FOR MADRAS E'ORTY Leyland Royal Tigers with Pneumo-cyclic gearboxes have been ordered for service in Madras. Dr. U. Krishna Rao, Madras Minister for Motor Transport, has told the legislative assembly that sanction has been accorded for the purchase of 50 oil-engined buses. These would be delivered early in the forthcoming financial sear.
PAY RISE= FARE RISE? THE extra 3s. a week pay rise to plat
'. form staffs, which will cost Ribble Motor Services, Ltd.. 1120,000 a year, may compel them to increase fares, according to the general manager, Mr. H. Bottomley. A cut in the 1550,000 they pay in fuel tax would help to offset this.