Friday May 18, 10:17 PM
SINGAPORE: The Land Transport Authority (LTA) has come out on the losing side in a S$7 million court case.
In a judicial review, Judge Judith Prakash has ruled in favour of Komoco Motors, which brings in Hyundai cars.
Some 17,000 Hyundai cars were at the centre of the case which started some two and a half years ago.
Importer Komoco Motors had been asked by the LTA to pay more ARF, amounting to some S$7 million.
"There was a customs issue which required Komoco to pay additional duty on those cars and as a norm the Registrar of Vehicles - or LTA in this case - actually used the OMV figure from customs to determine how much ARF or additional registration fee to impose on those cars.
"In this case, Komoco felt the OMV itself should not be extended based on certain extenuating circumstances," says Philip Fong, Partner, Harry Elias Partnership.
So Komoco's lawyers say it was prepared to go to LTA, open its books, and give full disclosure as to why they should not have to pay in this particular case.
A meeting took place in an attempt to settle the matter out of court.
But to court, it went.
"We actually complained that LTA should not piggy back on the decision of customs blindly and without exercising an independent mind," says Fong.
The case went up for judicial review, which seldom happens in Singapore.
This is when a court of law reviews the actions of an official or entity, that is usually part of the government.
In making her judgement, which has just been released, Judge Judith Prakash said LTA's policy was not unreasonable or irrational.
However, having instituted that policy, the Registrar should have heard the case with an open mind and considered whether an exception should have been made.
She added that the Registrar had unlawfully delegated her authority to Customs, by refusing to consider whether or not exceptional circumstances applied.
So the Judge ruled in favour of Komoco, with costs - Channel NewsAsia understands LTA may have to pay up to S$50,000.
When approached by Channel NewsAsia, LTA said it is consulting its lawyers. - CNA/yy
