THE High Court yesterday quashed a decision made by the registrar of vehicles,finding that the registrar did not have an open mind in hearing a $7 million dispute between the registrar and a car distributor.

The case concerns the additional registration fee (ARF) which the registrar levied on Komoco Motors, which distributes Hyundai cars. The problem started when the Singapore Customs found in 2004 that Komoco had under declared the open market value (OMV) of 17,449 cars - which the company disputed, although it paid a composition fine to avoid prosecution.

However, the registrar used Customs' reassessment of the value of the cars and asked for an extra $7 million in ARF payment.

Komoco objected, saying it had consistently disagreed with the Customs' revaluation of the uplifts on the cars and that it had not underdeclared their value as alleged.

However, the registrar found that Komoco had to pay an extra ARF of $7million with an amendment fee of $366,408 and Komoco applied for judicial review of the decision.

Judge Judith Prakash found that the registrar had 'fettered her discretion' in relation to the valuation of the cars and was not prepared to hear Komoco's case with an open mind. This was because of her 'unwavering adherence' to the policy of adopting Customs valuation as a basis for assessing the ARF payable.

'Although the registrar heard Komoco's objections, she did not do so with an open mind and was not genuinely prepared to consider if an exception ought to be made for Komoco,' Judge Prakash said in a written judgment.

Judge Prakash also said that the registrar had 'unlawfully delegated her authority' to Customs by 'refusing to consider whether or not exceptional circumstances applied'.

BT understands that there are at least two other car distributors which were in the same predicament as Komoco and were waiting for the outcome of this case.

Komoco was represented by Senior Counsel Harry Elias and Philip Fong from Harry Elias Partnership. Mr Fong said the High Court's decision meant that in adopting a general policy, authorities exercising administrative decisions must be willing to make exceptions.