Price (Nfld.) Pulp & Paper Ltd. v. Minister of National Revenue, (1974) 5 N.R. 197 (FCA)

• Judge: Thurlow, Pratte and Urie, JJ.
• Court: Federal Court of Appeal (Canada)
• Case Date: October 17, 1974
• Jurisdiction: Canada (Federal)
• Citations: (1974), 5 N.R. 197 (FCA)

Price Pulp & Paper Ltd. v. MNR (1974), 5 N.R. 197 (FCA)

MLB headnote and full text

Price (Nfld.) Pulp & Paper Ltd. v. Minister of National Revenue

Indexed As: Price (Nfld.) Pulp & Paper Ltd. v. Minister of National Revenue

Federal Court of Appeal

Thurlow, Pratte and Urie, JJ.

October 17, 1974.

Summary:

This case arose out of a claim for the return of sales tax of $267,460. The taxpayer, an operator of a paper mill, purchased a paper machine for $5,000,000. in 1966. The purchase price was payable in 12 installments over the period from December 31, 1965 to September 30, 1967. Title to the machine was retained by the sellor until the purchase price was paid in full. Effective June 2, 1967 the paper machine was exempted from sales tax. As of June 2, 1967 the taxpayer had paid several installments and also had paid sales tax of $267,460. The Trial Division of the Federal Court of Canada dismissed an action by the taxpayer for the recovery of the $267,460.

On appeal to the Federal Court of Appeal the appeal was dismissed and the judgment of the Trial Division was affirmed. The Federal Court of Appeal interpreted the statutory provisions enacting the exemption and s. 30(1) of the Excise Tax Act and held that the tax imposed on the installment payments was imposed immediately and unconditionally - see paragraph 9.

Sales and Service Taxes - Topic 523

Sales tax - Exemptions - Operation of the statutory provisions of a new exemption - Application of a new exemption respecting machinery to existing installment contract - Excise Tax Act, s. 30(1) - The taxpayer, a paper mill, purchased a $5,000,000 paper machine by installments - The paper machine was exempted from sales tax when a portion of the purchase price remained unpaid - The Federal Court of Appeal dismissed the taxpayer's action for the return of sales tax of $267,460 paid on the installments paid before effective date of exemption.

Cases Noticed:

R. v. Dominion Engineering Company Limited, [1944] S.C.R. 371, dist. [para. 8].

R. v. M. Geller Inc., [1963] S.C.R. 629, dist. [para. 12].

Statutes Noticed:

Excise Tax Act, R.S.C. 1970, c. E-13, sect. 30(1) [para. 6].

Excise Tax Act, S.C. 1967-68, c. 29, sect. 13(1) [para. 7].

Counsel:

Gordon F. Henderson, Q.C., and Y.A.G. Hynna, for the appellant;

Duff Friesen, for the respondent.

This appeal was heard at Ottawa, Ontario on October 15 and 16, 1974. Judgment was delivered by the Federal Court of Appeal on October 17, 1974.

The judgment of the Federal Court of Appeal was delivered by Thurlow, J.