Ready Mixed Concrete (WA) Pty Ltd v Commissioner of Taxation (Cth)

Ready Mixed Concrete (WA) Pty Ltd v Commissioner of Taxation (Cth)

The taxpayer was entitled to deductions under s 62AA(5) for expenditure on crushing plant used directly to manufacture aggregate from quarried stone, because that process produced manufactured goods derived from other goods and was not excluded as quarrying. However, deductions were not allowable for mobile No. 7 while it only screened and graded pebbles, employee facility equipment, or Euclid dump trucks used to bring quarried stone to the plant, because those items were not used directly in manufacturing and the trucks were not transportation within premises under s 62AA(2)(e).

Jurisdiction
Australia
Procedural Posture
Income Tax Appeals Under the Income Tax Assessment Act, S 187 From Decisions Disallowing Objections to Assessments / Judgment on Two Appeals Heard Together for the Years Ended 30 June 1968 and 30 June 1969
Outcome
Appeals allowed in part.
Legal Topics
['income Tax Deductions' 'manufacturing Plant Allowance' 'manufactured Goods Derived From Other Goods' 'quarrying Operations Exclusion' 'transportation Within Premises']
['taxation Law'] ['income Tax Deductions' 'manufacturing Plant Allowance' 'manufactured Goods Derived From Other Goods' 'quarrying Operations Exclusion' 'transportation Within Premises']

Case Brief

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Procedural Posture

Income Tax Appeals Under the Income Tax Assessment Act, S 187 From Decisions Disallowing Objections to Assessments / Judgment on Two Appeals Heard Together for the Years Ended 30 June 1968 and 30 June 1969

Legal Issues

  1. 1 ['Whether the crushing plant and related articles were plant or articles owned by the taxpayer for use primarily and principally, and directly in operations by means of which manufactured goods are derived from other goods within s 62AA(2)(a)(i).' 'Whether the plant or articles were excluded by s 62AA(3)(a) as plant or articles for use in mining or quarrying operations.' 'Whether Euclid dump trucks used to carry quarried stone to the crushing plant qualified under s 62AA(2)(e) as plant used in transportation within premises.' 'Whether mobile No. 7, used at the relevant time for screening and grading pebble stones without crushing, was used in manufacturing.']

Ratio Decidendi

The taxpayer was entitled to deductions under s 62AA(5) for expenditure on crushing plant used directly to manufacture aggregate from quarried stone, because that process produced manufactured goods derived from other goods and was not excluded as quarrying. However, deductions were not allowable for mobile No. 7 while it only screened and graded pebbles, employee facility equipment, or Euclid dump trucks used to bring quarried stone to the plant, because those items were not used directly in manufacturing and the trucks were not transportation within premises under s 62AA(2)(e).

Court Disposition

Appeals allowed in part.

Orders

  • ['Assessments set aside.' 'Matters remitted to the Commissioner to assess tax in accordance with this decision.' "Commissioner to pay two-thirds of the appellant's costs taxed on the basis that the two appeals were heard together." 'Usual order as to exhibits.' 'This order to bear date 26 May 1971.']