HM Revenue & Customs v Hyde Industrial Holdings Ltd, Court of Appeal - Civil Division, April 28, 2006, [2006] EWCA Civ 502

Extract

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HM Revenue & Customs v Hyde Industrial Holdings Ltd, Court of Appeal - Civil Division, April 28, 2006, [2006] EWCA Civ 502

Case No: B1/2005/1067 and (A)

Neutral Citation Number: [2006] EWCA Civ 502

IN THE SUPREME COURT OF JUDICATURE

COURT OF APPEAL (CIVIL DIVISION)

ON APPEAL FROM TAMESIDE COUNTY COURT

His Honour Judge Tetlow

TS201511

Royal Courts of Justice

Strand, London, WC2A 2LL

Date: Friday, 28th April 2006

Before :

LORD JUSTICE WALLER

LORD JUSTICE LONGMORE

and

LORD JUSTICE LLOYD

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Between :

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(Transcript of the Handed Down Judgment of

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Launcelot Henderson QC and Andrew Westwood (instructed by Solicitor's Office HM Revenue and Customs) for the Appellant

Edward Bartley Jones QC and Christopher Cook (instructed by Pearson Hinchliffe, Solicitors) for the Respondent

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Judgment

Lord Justice Waller :

Introduction

1. The broad picture is as follows. On 2nd May 2002 the Inland Revenue (the Revenue) commenced proceedings against Hyde Industrial Holdings Ltd (Hyde) claiming what it alleged to be unpaid National Insurance Contributions (NICs) in the sum of £743,705.80. An officer of the Revenue had decided that those contributions were due for the 1996/7 and 1997/8 tax years, payable under s.6 of the Social Security Contributions and Benefits Act 1992. Hyde had appealed the officer's decision and in accordance with section 117A(5) the court by order dated 21st June 2002 adjourned the proceedings, pending that appeal. After various orders made by the court of its own motion against the Revenue with which they failed to comply or to which they failed to react, by an order dated 26th March 2004 District Judge Osborne, sitting at Tameside County Court, again of his own motion ordered that the ``claim (be) struck out on 10th February 2004''. The Revenue failed to respond to that order with any urgency, and by a further order made by District Judge Gaunt, dated 10th February 2005, the Revenue's application to have the action reinstated was dismissed with an order that the Revenue pay the costs, assessed at £592.50. The Revenue have until recently not paid those costs.

2. His Honour Judge Tetlow gave the Revenue permission to appeal both orders, but by order dated 28th April 2005 dismissed the Revenue's appeals.

3. By order dated 28th July 2005 Kennedy LJ granted permission for a second appeal to the Court of Appeal saying:-

``Although this is a second ...

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