A Ballybofey-man has been fined ¤1,900 for supplying diesel on which the appropriate rate of VAT was not paid.
A recent sitting of Letterkenny District Court heard evidence against Hugh Patrick McGowan of Ballybofey Oil Company, Dreenan and Fuel Cents Ltd. Greenfield, Convoy.
Judge Thomas Fitzpatrick was told that on June 15, 2005 Revenue Commissioners analysed samples from two vehicles at the premises in Ballybofey and Convoy and found excessive levels of sulphur.
In evidence, Mr Pat Grogan from the Revenue Commissioners explained: "There is a certain legal sulphur limit for diesel, fifty parts per million and anything in excess of that would indicate that the fuel is agricultural diesel." Judge Fitzpatrick remarked that this type of fuel is known as "washed diesel".
Mr Grogan added that the consequences were a loss of duty to the Revenue, environmental damage, and possible damage to the engines of a vehicle. He added also that the defendant could make a substantial amount of money from selling this type of fuel with a difference of thirty four cent per litre.
The results of analysis from fuel at Ballybofey Oil Company showed 637 parts sulphur per million and from Fuel Cents Ltd in Convoy the analysis showed 168 parts per million.
Solicitor for the defence, Mr Hennessy explained that in 2002 his client had been delivered a quantity of washed diesel and had declared it to the Revenue. He added that this oil was disposed of and his client was before the court on this occasion because there was contamination from residue left in the tanker in 2002.
Mr Grogan noted, however, that the pipes would have been washed out and no traces would have been left.
Mr Hennessy maintained, however, that his client's pipes were contaminated and asked Judge Fitzpatrick to give him the benefit of the doubt. He added that Mr McGowan's companies were reputable and had never come to the attention of the courts before.
Judge Fitzpatrick proceeded to fine Ballybofey Oil Company ¤1,900, mitigated to ¤950 in light of a guilty plea. Similarly Fuel Cents Ltd was also fined ¤1900 mitigated to ¤950.
