Biltrite Tire Co. v. The King

Biltrite Tire Co. v. The King

The retreading process—comprising drying, buffing, removal of old tread, cementing, patching and application and vulcanization of new tread—constituted production or manufacture of goods and tires within the meaning of the Special War Revenue Act; therefore the appellant was liable for sales tax under s.86(1)(a) and excise tax under s.80(1)(b) and Schedule II item 3, and for related licence fees.

Citation
[1937] SCR 364
Parties
Appellant (defendant): Biltrite Tire Company; Respondent (plaintiff): His Majesty the King (on the information of the Attorney-General of Canada)
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
19 March 1937
Procedural Posture
Taxation Appeal / Appeal to Supreme Court of Canada From the Exchequer Court of Canada
Outcome
Appeal dismissed with costs.
Legal Topics
Definition of Manufacture, Liability for Sales Tax, Liability for Excise Tax, Retreading and Repair of Goods
Source Language
English
Taxation Excise Tax Sales Tax Customs and Excise Definition of Manufacture Liability for Sales Tax Liability for Excise Tax Retreading and Repair of Goods

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Parties

Biltrite Tire Company

Appellant (defendant)

His Majesty the King (on the information of the Attorney-General of Canada)

Respondent (plaintiff)

Procedural Posture

Taxation Appeal / Appeal to Supreme Court of Canada From the Exchequer Court of Canada

Legal Issues

  1. 1 Whether retreading and repair of used tires constitutes producing or manufacturing 'goods' under s.86(1)(a) of the Special War Revenue Act for sales tax purposes
  2. 2 Whether retreading and repair of used tires constitutes manufacturing or producing 'tires' under s.80(1)(b) and Schedule II item 3 of the Special War Revenue Act for excise tax purposes
  3. 3 Whether preservation of the original tire's sidewall or numerical identification precludes classification as a manufactured good

Ratio Decidendi

The retreading process—comprising drying, buffing, removal of old tread, cementing, patching and application and vulcanization of new tread—constituted production or manufacture of goods and tires within the meaning of the Special War Revenue Act; therefore the appellant was liable for sales tax under s.86(1)(a) and excise tax under s.80(1)(b) and Schedule II item 3, and for related licence fees.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.
  • Judgment of the Exchequer Court for $5,318.46 and costs affirmed; appellant held liable for sales tax and excise tax under the Special War Revenue Act.