A MOTORIST from Weymouth who had a £12,000 Volvo seized after he was accused of being a tobacco smuggler has won a victory over Revenue and Customs at London's High Court.

Mark Mills was stopped by Customs at a French port while he and business partner Robert Kerry were travelling back from a trip to the continent in January last year.

Inside the Volvo - which Mr Mills says belongs to his wife, Harriet - were 43.5 kilos of Golden Virginia tobacco which Mr Mills has always insisted was for 'own use' and not for onward sale at a profit.

However, Customs officers seized both the tobacco - and the car - and that triggered a marathon legal battle in which Mr Mills has now twice emerged victorious over Revenue and Customs.

In January last year, the VAT Tribunal ruled in Mr Mills's favour and the taxman's appeal against that decision has now been dismissed by top judge, Mr Justice Mann.

In a ruling likely to be of importance in many similar cases, the judge dismissed Revenue and Customs' plea that it had been an 'abuse of process' for the VAT Tribunal to allow Mr Mills to re-open the issue of whether or not the tobacco was for 'own use'.

The tribunal, ruled the judge, had also been right to reject Revenue and Customs' claim that Mr Mills had initially been 'misleading' about the amount of tobacco in the car.

"It is impossible to infer a sensible motive or reason for Mr Mills lying about this and, in those circumstances, it is not right to find him to have lied", said Mr Justice Mann.

However, even the High Court's decision does not bring a conclusive end to Mr Mills's fight to get back the Volvo. His case must now be reconsidered again by a Revenue and Customs 'reviewing officer' in the light of the judge's decision.