DUNNES STORES has secured leave from the High Court to challenge the validity of the plastic bag levy.
It is seeking a declaration that the regulations imposing the tax are invalid in a case that could have general implications.
The Dunnes case involves a €36.4 million bill served on it for alleged uncollected and due payments arising from the levy.
The company is disputing the Revenue Commissioners’ tax assessments of November last, covering a four-year period, on grounds including that the definition of plastic bag in the 2001 regulations is “so uncertain” as to render the regulations invalid.
Dunnes claims the levy relates to larger bags given to customers at point of sale to hold their shopping but that the assessments wrongly include other bags used for wrapping or hygiene purposes.
The regulations, Dunnes alleges, are invalid because they are not for the recovery of “waste” as defined by the Waste Management Act.
The company claims a plastic bag provided to a customer of a supermarket, service station or other sales outlet does not constitute waste and does not become waste until the holder discards it or forms an intention to discard it.
Paul Sreenan SC, for Dunnes, said yesterday the company has always been and remains a strong supporter of the plastic bag levy but is strongly disputing the tax assessments.
He said the issues raised by the company could not be addressed in an appeal to the Revenue Appeals Commissioners against the assessment, but only in judicial review proceedings.
Mr Justice Michael Peart granted leave for the bringing of the challenge after finding the company had met the required arguable case threshold. He also granted a stay preventing the Revenue taking any steps on foot of the assessments pending the outcome of the case which will be mentioned again next month.
The action is against: the Revenue Commissioners; the Minister for the Environment and Local Government; Ireland; and the Attorney General.
Dunnes is seeking orders quashing assessments made under the Waste Management (Environmental Levy Plastic Bag) Regulations of 2001.
It is also seeking declarations including that the 2001 regulations implementing the plastic bag levy are invalid and of no legal effect.
Mr Sreenan said Dunnes did not accept the November assessments as it contended the plastic bags in relation to which those assessments were made “were not subject to the levy”. The plastic bags in question were used in the company’s stores in Northern Ireland and also used for other purposes.