The judge said the HMRC would take financial hardship into account when levying tax.
He later apologised and insisted HMRC did "not underestimate the distress caused to taxpayers".
Seventeen people were convicted for fuel fraud in the past four years, according to HMRC figures.
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Universal Credit calculations depend on salary data from HMRC's new PAYE Real Time Information system.
Two previous winding up petitions brought by HMRC were dismissed in September and November last year.
BBC: Llanelli AFC fends off third 'winding up' in tax dispute
Her Majesty's Revenue and Customs (HMRC) had wanted to wind the club up immediately.
BBC: Llanelli AFC fends off third 'winding up' in tax dispute
"Money laundering is a complex crime and one which HMRC is tackling, " said the HMRC spokeswoman.
"I commend HMRC and PSNI officers on discovering this underground fuel laundering plant, " he said.
The HMRC's estimate of the alcohol tax gap was published most recently in September 2011.
Since DOTAS was introduced in 2004, HMRC has initiated 93 changes to tax law.
"Consequently s18(2)(a) CRCA 2005 is a sound legal basis for HMRC to disclose, " she added.
The House of Commons Public Accounts Committee criticised HMRC's management of the income tax system.
Mr Mitchell added that there would now be a meeting of Portsmouth creditors, including HMRC.
But HMRC takes a strict line on how such benefits should be costed and allocated.
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He pointed out that Starbucks had negotiated the additional corporation tax payment with HMRC.
Northern Rock was something which plainly was not anticipated any more than the HMRC debacle.
This is automatic and is issued as an automated process by the HMRC computer.
The HMRC investigation into the case, which started in 2002, was one of the largest undertaken.
But an HMRC spokeswoman said it was "technical issues" which prevented higher security individuals filing online.
HMRC's failings are linked to an administrative merger and job cuts that he pushed through as chancellor.
"HMRC processes your return faster, so any money you are owed is repaid more quickly, " he said.
Smokefree South West is working with the HMRC, Trading Standards, Devon and Cornwall Police and local authorities.
He added that HMRC will give several warnings and opportunities to settle any liabilities before taking action.
HMRC, which had sought a winding-up petition, said administration "offers the best chance of the club surviving".
The spending watchdog said tackling avoidance, which is not illegal, was difficult but HMRC must do better.
BBC: Tax avoidance schemes 'costs UK billions in lost revenue'
But HM Revenue and Customs (HMRC) is concerned that some agencies are paying staff for spurious expenses.
But Ronnie Ludwig, at accountants Saffery Champness, said HMRC was firing a broadside at all such schemes.
But HMRC said more money was owed since proceedings began and was granted permission to amend the petition.
Under any enquiry HMRC will charge the full amount of tax, and interest on the late paid tax.
BBC: NEWS | Business | Offshore tax dodging: the investigations
The list highlights "deliberate defaulters" who were found during investigations by HMRC into affairs conducted after April 2010.
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