Price (Nfld.) Pulp & Paper Ltd. and Price Co. v. R., (1976) 11 N.R. 376 (SCC)

• Judge: Laskin, C.J.C., Judson, Spence, Pigeon and de Grandpré, JJ.
• Court: Supreme Court (Canada)
• Case Date: October 05, 1976
• Jurisdiction: Canada (Federal)
• Citations: (1976), 11 N.R. 376 (SCC);1976 CanLII 175 (SCC);[1977] 2 SCR 36

Price Pulp & Paper Ltd. v. R. (1976), 11 N.R. 376 (SCC)

MLB headnote and full text

Price (Nfld.) Pulp & Paper Limited and The Price Company Limited v. R.

Indexed As: Price (Nfld.) Pulp & Paper Ltd. and Price Co. v. R.

Supreme Court of Canada

Laskin, C.J.C., Judson, Spence, Pigeon and de Grandpré, JJ.

October 5, 1976.

Summary:

This case arose out of the plaintiffs' claim for the return of sales tax paid under the Excise Tax Act. The taxpayers purchased a paper machine under a conditional sales contract, which provided for instalment payments and for title to be reserved in the seller until the payments were complete. Sales tax was paid on each instalment when made. Before the payments were completed the machinery became exempt from sales tax. The plaintiffs brought an action for a refund of the sales tax paid on instalments made before the exemption became effective. The Trial Division of the Federal Court of Canada dismissed the action and the Federal Court of Appeal dismissed the plaintiffs' appeal in a judgment reported 5 N.R. 197. The plaintiffs appealed to the Supreme Court of Canada.

The Supreme Court of Canada dismissed the appeal. The Supreme Court of Canada held that under s. 30(1)(a)(ii) of the Excise Tax Act sales tax is payable on each instalment of a conditional sales contract irrespective of delivery or when title passes. The Supreme Court of Canada held that the sales tax paid on instalments made before the exemption became effective was not refundable.

Sales and Service Taxes - Topic 523

Sales tax - Exemptions - Effect of exemption coming into effect on machinery subject to a conditional sales contract before instalment payments completed - Whether sales tax paid on payments before exemption refundable - Excise Tax Act, R.S.C. 1952, c. 100, s. 30(1)(a)(ii) - The plaintiff bought a machine under a contract where instalment payments were to be made and title did not pass until the payments were completed - Sales tax was paid on each instalment - Before the payments were completed the machinery became exempt from sales tax - The plaintiff sought a refund of the tax paid on instalments made before the exemption - The Supreme Court of Canada held that under s. 30(1)(a)(ii) of the Excise Tax Act sales tax is payable on each instalment of a conditional sales contract irrespective of delivery or when title passes - The Supreme Court of Canada held that the sales tax was not refundable.

Cases Noticed:

The King v. Dominion Engineering Co. Ltd., [1944] S.C.R. 371, affd. [1947] 1 D.L.R. 1, dist. [para. 5].

Steel Co. of Canada Ltd. v. The Queen, [1955] S.C.R. 161, dist. [para. 5].

Statutes Noticed:

Excise Tax Act, R.S.C. 1952, c. 100, sect. 30(1)(a)(ii) [para. 4].

Counsel:

Gordon F. Henderson, Q.C. and George Hynna, for the appellants;

D.H. Aylen, Q.C. and D.F. Friensen, for the respondent.

This case was heard at Ottawa, Ontario on June 24 and 25, 1976, before LASKIN, C.J.C., JUDSON, SPENCE, PIGEON and DE GRANDPRE, JJ. of the Supreme Court of Canada.

On October 5, 1976, LASKIN, C.J.C., delivered the following judgment of the Court: