R v Sutton

The High Court of Australia considered a special case concerning the recovery of penalties for breaches of the *Customs Act 1901*. The plaintiffs were the King and the Minister of State for the Commonwealth administering the Customs, while the defendant, Edwin Frederick Sutton, was a carrier acting under the authority of the New South Wales Government. The dispute arose when Sutton, on behalf of the State Government, removed a quantity of wire netting imported from England without passing customs entry or paying duty, despite the Collector of Customs' refusal to admit the goods duty-free.

The central legal issues before the Court were whether the *Customs Act 1901* bound the Crown as representing the State of New South Wales, whether the imported wire netting was subject to the control of the Customs at the time of its removal, and consequently, whether Sutton was lawfully entitled to remove the goods. The defendant argued that as the goods belonged to the Crown, and the Crown is not bound by statute unless expressly stated or by necessary implication, the *Customs Act* did not apply to the State Government's actions.

The Court reasoned that the rule that the Crown is not bound by statute applies only to the representative of the Crown who has executive authority in the place where the statute applies and to matters within that authority. In matters falling under the exclusive control of the Commonwealth, such as customs, the Constitution binds the Crown as represented by the Commonwealth Government, and the State Governments have no executive authority. Therefore, the *Customs Act 1901*, being a valid exercise of the Commonwealth's exclusive power over customs, applies to goods imported by State Governments just as it does to private individuals. The Court held that the State Government's executive authority did not extend to removing goods from Customs control contrary to the Act, and the intention of Parliament was clearly to bind all importers, including State Governments, in relation to customs matters.

The Court concluded that the *Customs Act 1901* binds the Crown as representing the State of New South Wales in relation to customs control. It found that the wire netting was subject to the control of the Customs at the time of its removal, and that the defendant was not lawfully entitled to remove the goods. Accordingly, judgment was entered for the plaintiffs for the penalty.