Key Facts
- •Kool Blast Europe Limited imported and placed HFCs on the market without the required quotas.
- •Seven civil penalty notices were issued by the Environment Agency totaling £27,497.84.
- •Kool Blast appealed on four grounds listed in reg. 26(7) of the Fluorinated Greenhouse Gases Regulations 2015.
- •The appeals were heard without a hearing, based on a joint bundle of documents.
- •Kool Blast argued inadvertence, lack of action by HMRC, and miscalculation of financial benefit.
- •Kool Blast was pursuing an exemption for the product at the time of the penalty notices.
Legal Principles
The burden of proof in a statutory appeal generally lies with the appellant.
Khan v Revenue & Customs [2006] EWCA Civ 89
EU Regulation 517/2014 aims to control emissions of F-gases, including HFCs, by imposing quotas.
EU Regulation 517/2014
The Environment Agency's Enforcement and Sanctions Policy (ESP) provides a structured approach to determining penalties.
Environment Agency Enforcement and Sanctions Policy
The Tribunal can substitute penalty notices with lower figures.
Regulation 26 and Schedule 5 of the Fluorinated Greenhouse Gases Regulations 2015
Outcomes
Appeals allowed in part.
The Tribunal reduced the penalties for four notices (#1 to #4) to reflect a corrected calculation of financial gain.
Other penalty notices affirmed.
The Tribunal found no other grounds to overturn the Environment Agency's decision.
Substituted penalty notices of £3,451.85 for notices #1 to #4.
This reflects the Environment Agency's corrected calculation of Kool Blast's financial gain after accounting for additional evidence.