Seaspan International Ltd. v. Minister of National Revenue, (2002) 220 F.T.R. 303 (TD)

JudgeBlais, J.
CourtFederal Court (Canada)
Case DateJune 14, 2002
JurisdictionCanada (Federal)
Citations(2002), 220 F.T.R. 303 (TD)

Seaspan Intl. Ltd. v. MNR (2002), 220 F.T.R. 303 (TD)

MLB headnote and full text

Temp. Cite: [2002] F.T.R. TBEd. JN.039

Seaspan International Ltd. (plaintiff) v. Her Majesty the Queen (defendant)

(T-1709-90; T-1710-90; T-1711-90; T-1712-90; 2002 FCT 675)

Indexed As: Seaspan International Ltd. v. Minister of National Revenue

Federal Court of Canada

Trial Division

Blais, J.

June 14, 2002.

Summary:

A taxpayer claimed a refund of federal sales tax and excise tax paid on diesel fuel that it had purchased. The taxpayer relied on s. 23(8)(c) of the Excise Tax Act and s. 3 of Part VI of Schedule III of the Act. The Minister of National Revenue denied the refund. The taxpayer commenced an action seeking the refund.

The Federal Court of Canada, Trial Division, held that the taxpayer was entitled to the refund.

Editor's note: for related decisions see 66 F.T.R. 286 and 229 N.R. 132.

Sales and Service Taxes - Topic 561.1

Sales tax - Exemptions - Diesel fuel to generate electricity - Diesel fuel used in the generation of electricity was exempt from excise and sales tax, except where the electricity was used primarily in the operation of a vehicle (Excise Tax Act, s. 23(8)(c) and Schedule III, Part VI, s. 3) - A taxpayer owned and operated tug boats and self-propelled train ferries - Approximately 10% of the diesel fuel purchased by the taxpayer was used for auxiliary engines which powered generators that produced electricity for the electrical equipment on the vessels - Much of the electrical equipment provided "hotel services" for crew (and sometimes non-crew) such as cooking or heating and air conditioning for accommodations and working spaces - The Federal Court of Canada, Trial Division, held that the taxpayer was entitled to the exemption - The electricity used for hotel services was not used to propel or navigate the vessels - The court rejected the Crown's argument that electricity which provided comfort to crew members should be seen as electricity used primarily in the operation of the vehicle.

Cases Noticed:

Via Rail Canada Inc. v. Minister of National Revenue, [1993] C.I.T.T. No. 111, consd. [para. 29].

R. v. Turbide (1986), 76 N.B.R.(2d) 138; 192 A.P.R. 138 (T.D.), dist. [para. 34].

Vaillancourt v. Minister of National Revenue (1991), 132 N.R. 133; 91 D.T.C. 5408 (F.C.A.), refd to. [para. 39].

Johns-Manville Canada Inc. v. Minister of National Revenue (1985), 60 N.R. 244; 85 D.T.C. 5373 (S.C.C.), refd to. [para. 40].

Fries v. Minister of National Revenue (1990), 114 N.R. 150; 90 D.T.C. 6662 (S.C.C.), refd to. [para. 41].

Statutes Noticed:

Excise Tax Act, R.S.C. 1985, c. E-15, sect. 23(8)(c) [para. 8]; sect. 51(1) [para. 9]; Schedule III, Part VI, sect. 3 [para. 10].

Authors and Works Noticed:

Canada, Hansard, House of Commons Debates, June 23, 1966, p. 6812 [para. 30].

Counsel:

Timothy W. Clarke and Christopher S. Wilson, for the plaintiff;

Jan Brongers and Michael Roach, for the defendant.

Solicitors of Record:

Bull Housser & Tupper, Vancouver, British Columbia, for the plaintiff;

Morris Rosenberg, Deputy Attorney General of Canada, Ottawa, Ontario, for the defendant.

This action was heard at Vancouver, British Columbia, on May 7 and 8, 2002, by Blais, J., of the Federal Court of Canada, Trial Division, who delivered the following decision on June 14, 2002.

To continue reading

Request your trial
4 practice notes
  • Imperial Oil v. New Brunswick (Minister of Finance), 2009 NBCA 20
    • Canada
    • New Brunswick Court of Appeal (New Brunswick)
    • 22 Enero 2009
    ...302 N.B.R.(2d) 165; 784 A.P.R. 165; 2006 NBCA 71, refd to. [para. 15]. Seaspan International Ltd. v. Minister of National Revenue (2002), 220 F.T.R. 303; 2002 FCT 675, dist. [para. Comeau v. Saint John Regional Hospital et al. (2003), 256 N.B.R.(2d) 356; 670 A.P.R. 356; 2003 NBCA 17, refd t......
  • Tower et al. v. Minister of National Revenue et al., (2002) 223 F.T.R. 32 (TD)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • 30 Julio 2002
    ...national et al. (1999), 264 N.R. 21 (F.C.A.), refd to. [para. 36]. Seaspan International Ltd. v. Minister of National Revenue (2002), 220 F.T.R. 303 (T.D.), refd to. [para. Authors and Works Noticed: Wigmore, John Henry, Evidence in Trials at Common Law (McNaughton Rev. 1961), vol. 8, par......
  • Minister of National Revenue v. Cast Terminals Inc. et al., (2003) 233 F.T.R. 78 (TD)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • 26 Noviembre 2002
    ...of National Revenue (2002), 296 N.R. 375 (F.C.A.), refd to. [para. 87]. Seaspan International Ltd. v. Minister of National Revenue (2002), 220 F.T.R. 303 (T.D.), refd to. [para. Statutes Noticed: Excise Tax Act, R.S.C. 1985, c. E-15, sect. 23(8)(c) [para. 6]. Counsel: Claude Morrissette a......
  • Imperial Oil v. New Brunswick (Minister of Finance), (2007) 327 N.B.R.(2d) 16 (TD)
    • Canada
    • New Brunswick Court of Queen's Bench of New Brunswick (Canada)
    • 29 Junio 2007
    ...Utilities Ltd. (1985), 12 C.C.L.I. 97 (B.C.S.C.), refd to. [para. 71]. Seaspan International Ltd. v. Minister of National Revenue (2002), 220 F.T.R. 303 (T.D.), refd to. [para. Statutes Noticed: Gasoline and Motive Fuel Tax Act, R.S.N.B. 1973, c. G-3, sect. 3(6)(d), sect. 6(6)(d) [para. 64]......
4 cases
  • Imperial Oil v. New Brunswick (Minister of Finance), 2009 NBCA 20
    • Canada
    • New Brunswick Court of Appeal (New Brunswick)
    • 22 Enero 2009
    ...302 N.B.R.(2d) 165; 784 A.P.R. 165; 2006 NBCA 71, refd to. [para. 15]. Seaspan International Ltd. v. Minister of National Revenue (2002), 220 F.T.R. 303; 2002 FCT 675, dist. [para. Comeau v. Saint John Regional Hospital et al. (2003), 256 N.B.R.(2d) 356; 670 A.P.R. 356; 2003 NBCA 17, refd t......
  • Tower et al. v. Minister of National Revenue et al., (2002) 223 F.T.R. 32 (TD)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • 30 Julio 2002
    ...national et al. (1999), 264 N.R. 21 (F.C.A.), refd to. [para. 36]. Seaspan International Ltd. v. Minister of National Revenue (2002), 220 F.T.R. 303 (T.D.), refd to. [para. Authors and Works Noticed: Wigmore, John Henry, Evidence in Trials at Common Law (McNaughton Rev. 1961), vol. 8, par......
  • Minister of National Revenue v. Cast Terminals Inc. et al., (2003) 233 F.T.R. 78 (TD)
    • Canada
    • Canada (Federal) Federal Court (Canada)
    • 26 Noviembre 2002
    ...of National Revenue (2002), 296 N.R. 375 (F.C.A.), refd to. [para. 87]. Seaspan International Ltd. v. Minister of National Revenue (2002), 220 F.T.R. 303 (T.D.), refd to. [para. Statutes Noticed: Excise Tax Act, R.S.C. 1985, c. E-15, sect. 23(8)(c) [para. 6]. Counsel: Claude Morrissette a......
  • Imperial Oil v. New Brunswick (Minister of Finance), (2007) 327 N.B.R.(2d) 16 (TD)
    • Canada
    • New Brunswick Court of Queen's Bench of New Brunswick (Canada)
    • 29 Junio 2007
    ...Utilities Ltd. (1985), 12 C.C.L.I. 97 (B.C.S.C.), refd to. [para. 71]. Seaspan International Ltd. v. Minister of National Revenue (2002), 220 F.T.R. 303 (T.D.), refd to. [para. Statutes Noticed: Gasoline and Motive Fuel Tax Act, R.S.N.B. 1973, c. G-3, sect. 3(6)(d), sect. 6(6)(d) [para. 64]......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT