Caerdav Ltd v The Commissioners for HMRC

Ground 1 (Inward Processing): Dismissed

The FTT correctly found that the aircraft was subject to a direct export from Bulgaria to the US, not an indirect export through the EU. The Inward Processing procedure was discharged when the aircraft left EU airspace.

Ground 2 (Remission of duty): Dismissed

Caerdav failed to demonstrate 'special circumstances' under Article 120 UCC and 'obvious negligence' was found on their part for failing to renew their EUA.

Ground 3 (Legitimate Expectation - EU law): Dismissed

Even if the FTT had jurisdiction to consider EU legitimate expectation under Article 120, the conditions were not met. HMRC's statements did not provide the necessary assurances.

Ground 4 (Proportionality): Dismissed

The FTT correctly focused on the proportionality of the legislation as a whole, not its application to this specific case. The overarching system, including provisions for special procedures and remission, was considered proportionate.

Ground 5 (Legitimate Expectation - UK law): Dismissed

The FTT correctly ruled it lacked jurisdiction to consider this ground under the relevant statutory provisions. Even if it had jurisdiction, HMRC's statements were not sufficiently clear and unambiguous to create a legitimate expectation.

Ground 6 (Dispute over aircraft value): Dismissed

The FTT's refusal to allow Caerdav to introduce a new ground of appeal regarding the aircraft's value was a proper exercise of its case management discretion.