Commissioner for the South African Revenue Service v Plasmaview Technologies (Pty) Ltd

Plasmaview Technologies (Pty) Ltd imported plasma and LCD television screens and later fully assembled television sets from Korea. In December 2005, a SARS tariff specialist issued a tariff determination ('Plasma 1') classifying plasma screens without TV tuners under tariff heading 8528.21.20, qualifying for a full rebate under rebate item 460.16. Relying on this, Plasmaview later arranged for tuners to be fitted before importation, thereby importing complete television sets while still claiming the rebate. In July 2006, the same official amended his reasoning ('Plasma 2') but did not change the original determination or notify Plasmaview. SARS later conducted a post-clearance inspection and issued schedules assessing substantial underpaid customs duty and VAT. Plasmaview successfully reviewed these assessments in the High Court, which held that 'Plasma 2' was an unfair administrative determination. SARS appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The High Court’s order was set aside and replaced with an order dismissing Plasmaview’s application with costs, including the costs of two counsel.

The case clarifies the nature and limits of tariff determinations under the Customs and Excise Act, distinguishing between a binding determination and non-binding reasoning or commentary. It confirms that tariff determinations apply only to the specific goods described and fall away if the nature of the goods changes. The judgment also affirms SARS’s powers to issue retrospective assessments following post-clearance inspections.