Klima-Therm Limited v The Environment Agency
[2023] UKFTT 1080 (GRC)
Kool Blast Europe Limited v The Environment Agency
4 January 2024
[2024] UKFTT 4 (GRC)
First-tier Tribunal
A company was fined for illegally importing a gas. They appealed, and the judge reduced some of the fines because the original calculations were wrong, but most of the fines stood. The company should have checked the rules before importing the gas.
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.