Attorney-General (NSW) Informant; and Homebush Flour Mills Limited [1937] HCA 3

Attorney-General (NSW) Informant; and Homebush Flour Mills Limited [1937] HCA 3

The Flour Acquisition Act 1931-1933 (N.S.W.) imposes a scheme whereby flour produced in New South Wales is acquired by the Crown at a lower price and sold back at a higher price, compelling millers to pay the difference to the State for a governmental purpose. This difference, in legal effect, is a tax on production or sale of goods in New South Wales, constituting a duty of excise. Since sec. 90 of the Commonwealth Constitution gives exclusive power to the Commonwealth Parliament to impose duties of excise, the Act is invalid.

Parties
Informant: Attorney-General for New South Wales; Defendant: Homebush Flour Mills Limited
Jurisdiction
Australia
Procedural Posture
Demurrer / Judgment on Demurrer Moved From Supreme Court of New South Wales Under Sec. 40 of the Judiciary Act 1903 1934
Outcome
Demurrer upheld; judgment for defendant.
Legal Topics
State Statute Validity, Duty of Excise, Compulsory Acquisition, Taxation, Exclusive Powers
Constitutional Law State Statute Validity Duty of Excise Compulsory Acquisition Taxation Exclusive Powers

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Parties

Attorney-General for New South Wales

Informant

Homebush Flour Mills Limited

Defendant

Procedural Posture

Demurrer / Judgment on Demurrer Moved From Supreme Court of New South Wales Under Sec. 40 of the Judiciary Act 1903 1934

Legal Issues

  1. 1 Does the Flour Acquisition Act 1931-1933 (N.S.W.) impose a duty of excise contrary to sec. 90 of the Commonwealth Constitution?
  2. 2 Is the Act, by its scheme of compulsory acquisition and resale, an invalid attempt by the State Parliament to impose an excise through indirect means?

Ratio Decidendi

The Flour Acquisition Act 1931-1933 (N.S.W.) imposes a scheme whereby flour produced in New South Wales is acquired by the Crown at a lower price and sold back at a higher price, compelling millers to pay the difference to the State for a governmental purpose. This difference, in legal effect, is a tax on production or sale of goods in New South Wales, constituting a duty of excise. Since sec. 90 of the Commonwealth Constitution gives exclusive power to the Commonwealth Parliament to impose duties of excise, the Act is invalid.

Court Disposition

Demurrer upheld; judgment for defendant.

Orders

  • Judgment for Homebush Flour Mills Limited on demurrer.
  • Attorney-General's claim dismissed.