Minister of National Revenue v. Paccar of Canada Ltd., (1998) 148 F.T.R. 185 (TD)

• Judge: MacKay, J.
• Court: Federal Court (Canada)
• Case Date: January 28, 1998
• Jurisdiction: Canada (Federal)
• Citations: (1998), 148 F.T.R. 185 (TD)

MNR v. Paccar of Can. Ltd. (1998), 148 F.T.R. 185 (TD)

MLB headnote and full text

Temp. Cite: [1998] F.T.R. TBEd. JN.054

Her Majesty the Queen (plaintiff) v. Paccar of Canada Ltd. (defendant)

(T-480-97)

Indexed As: Minister of National Revenue v. Paccar of Canada Ltd.

Federal Court of Canada

Trial Division

MacKay, J.

May 8, 1998.

Summary:

Paccar of Canada Ltd. was an importer of what it called "heavy duty highway tractors", for highway use in conjunction with semi-trailers. By virtue of s. 23(1) of the Excise Tax Act, and s. 7 of Schedule I thereto, excise tax of $100 was payable with respect to "air conditioners designed for use in automobiles, station wagons, vans or trucks". Paccar paid $100 for each air conditioning unit installed in its vehicles, but subsequently requested a refund of excise tax in the amount of $120,300. The Minister of National Revenue disallowed the refund, finding that the term "trucks" as used in s. 7 of Schedule I included Paccar's "highway truck tractors". The Canadian International Trade Tribunal (CITT) allowed Paccar's appeal, concluding that "trucks" in s. 7 excluded Paccar's vehicles. The Crown appealed the CITT's decision.

The Federal Court of Canada, Trial Division, allowed the appeal, holding that "trucks" in s. 7 included Paccar's "highway truck tractors".

Sales and Service Taxes - Topic 4

Sales tax - General principles and definitions - "Trucks" - Paccar of Canada Ltd. was an importer of what it called "heavy duty highway tractors", for highway use in conjunction with semi-trailers - Paccar installed air conditioning units in its vehicles - By virtue of s. 23(1) of the Excise Tax Act, and s. 7 of Schedule I thereto, excise tax of $100 was payable with respect to "air conditioners designed for use in automobiles, station wagons, vans or trucks" - The Federal Court of Canada, Trial Division, held that "trucks" in s. 7 included Paccar's "highway truck tractors".

Words and Phrases

Trucks - The Federal Court of Canada, Trial Division, held that the word "trucks" in s. 7 of Schedule I to the Excise Tax Act, R.S.C. 1985, c. E-15, included "highway truck tractors" - See paragraph 33.

Cases Noticed:

Shaklee Canada Inc. v. Canada (1995), 191 N.R. 227 (F.C.A.), refd to. [para. 9, footnote 1].

Lor-Wes Contracting Ltd. v. Minister of National Revenue, [1986] 1 F.C. 346; 60 N.R. 321 (F.C.A.), refd to. [para. 10, footnote 2].

J.V. Marketing Inc. v. Canadian International Trade Tribunal et al. (1994), 178 N.R. 24 (F.C.A.), refd to. [para. 10].

Shaklee Canada Inc. v. Canada (1995), 3 F.T.R. 22 (T.D.), refd to. [para. 11, footnote 4].

Sturdy Truck Body (1972) Ltd. v. Minister of National Revenue (Customs and Excise) (1995), 95 F.T.R. 270 (T.D.), refd to. [para. 11, footnote 4].

Bosa Bros. Construction Ltd. v. Minister of National Revenue (1995), 106 F.T.R. 30; 96 D.T.C. 6193 (T.D.), refd to. [para. 11, footnote 5].

Ford Motor Co. of Canada v. Minister of National Revenue, [1997] 3 F.C. 103; 212 N.R. 275 (F.C.A.), refd to. [para. 11, footnote 6].

R. v. York Marble, Tile & Terrazzo Ltd., [1968] S.C.R. 140, refd to. [para. 14, footnote 7].

Miln-Bingham Printing Co. v. R., [1930] S.C.R. 282, refd to. [para. 21, footnote 8].

Universal Go-Tract Ltd. v. Deputy Minister of National Revenue (Customs and Excise) (1981), 3 C.E.R. 239 (Tarr. Bd.), refd to. [para. 23, footnote 9].

MacLeod's Lawn Equipment Ltd. v. Deputy Minister of National Revenue (Customs and Excise) (1979), 1 C.E.R. 249 (Tarr. Bd.), refd to. [para. 23, footnote 9].

Rokon Distributors v. Deputy Minister of National Revenue (Customs and Excise) (1984), 7 C.E.R. 155 (Tarr. Bd.), refd to. [para. 23, footnote 9].

General Motors of Canada Ltd. v. Deputy Minister of National Revenue (Customs and Excise) (1982), 4 C.E.R. 39 (Tarr. Bd.), refd to. [para. 23, footnote 10].

Statutes Noticed:

Excise Tax Act, R.S.C. 1985, c. E-15, Schedule I, sect. 7 [para. 3].

Authors and Works Noticed:

Concise Oxford Dictionary (6th Ed. 1976) [para. 24].

Côté, Pierre-André, Interpretation of Legislation in Canada (2nd Ed. 1991), p. 291 [para. 21].

Funk & Wagnall's Canadian College Dictionary (1989) [para. 23].

McGraw-Hill Dictionary of Scientific and Technical Terms (4th Ed.) [paras. 24, 25].

Webster's Third New International Dictionary [para. 24].

Counsel:

Edward Livingstone, for the plaintiff;

Richard Deardon and Scott Little, for the defendant.

Solicitors of Record:

Gowling Strathy & Henderson, Ottawa, Ontario, for the plaintiff;

George Thomson, Deputy Attorney General of Canada, Ottawa, Ontario, for the defendant.

This appeal was heard in Ottawa, Ontario, on January 28, 1998, before MacKay, J., of the Federal Court of Canada, Trial Division, who delivered the following judgment on May 8, 1998.