HMRC repaid net amounts (because s 80(2A) required a set off from deductions of input tax already made for supplying services).
After Fleming (t/a Bodycraft) v Customs and Excise Commissioners [2008] UKHL 2, more refund claims were allowed going back to 4 December 1996.
Henderson J held that the HMRC was enriched by the full VAT amount at the expense of the ITCs.
As end users of management services, ITC could have rights under EU law, following Danfoss and Reemtsma.
These were San Giorgio claims, and there was no need to confine the claimant to Francovich v Italy damages.