19747    
MANCHESTER TRIBUNAL CENTRE	Reference No: MAN/06/388 

	KALRO BUILDING AND CONSTRUCTION LTD	Appellant

	and

	THE COMMISSIONERS FOR
	HER MAJESTY’S REVENUE AND CUSTOMS	Respondents

Tribunal Chairman: Lady Mitting

Sitting in public in Manchester on the 21 August 2006

	DIRECTION
under Rule 30(8)

This appeal against a decision of the Respondents with respect to a penalty assessment dated the 11 May 2006 in the sum of £4,436 and being a reasonable excuse appeal as defined by rule 2 of the Value Added Tax Tribunals Rules 1986 as amended coming on for hearing this day

And upon hearing Mr R Critchlow for the Appellant and Mr B Haley of Solicitor’s office for HM Revenue and Customs for the Respondents

And this tribunal having heard this appeal and having announced its decision

And the Appellant and the Respondents by their said representatives stating pursuant to the rule 30(8) of the said Rules as amended that they do not require the said decision to be recorded in a written document in accordance with rule 30(1) of the said Rules

This tribunal finds that:-
(i)	In relation to that element of the penalty (£3,944) relating to September 2002, the Appellant does not have a reasonable excuse but the penalty should be mitigated by 75%
(ii)	In relation to the balance of £492 in respect of December 2003, the Appellant does have a reasonable excuse

And this tribunal directs that this appeal is allowed in part

And that there is to be no direction as to costs

LADY MITTING
CHAIRMAN
Release Date: 25 August 2006

© CROWN COPYRIGHT 2006