Rexair of Canada Limited v. The Queen

Rexair of Canada Limited v. The Queen

Majority held appellant was a "manufacturer or producer" within s.2(a)(ii) because Canadian Radio manufactured the goods for the appellant, the appellant exercised complete control over production and used patent and trade‑mark rights; therefore excise and sales taxes were properly payable on the prices charged by the appellant to its distributors under ss.23 and 30 of the Excise Tax Act. The statutory wording and French text support extending "manufacturer" to such a party; The King v. Shore approved.

Citation
[1958] SCR 577
Parties
Appellant / Defendant: Rexair of Canada Limited; Respondent / Plaintiff: Her Majesty The Queen
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
26 June 1958
Procedural Posture
Taxation Appeal / Appeal to Supreme Court of Canada From the Exchequer Court of Canada
Outcome
Appeal dismissed; judgment of the Exchequer Court affirmed; costs awarded to the respondent.
Legal Topics
Excise Tax Act Interpretation, Definition of Manufacturer, Sales Tax Liability, Agency Versus Sale, Patent and Trade‑mark Rights
Source Language
English
Taxation Administrative Law Intellectual Property Contract Law Excise Tax Act Interpretation Definition of Manufacturer Sales Tax Liability Agency Versus Sale +1 more

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Parties

Rexair of Canada Limited

Appellant / Defendant

Her Majesty The Queen

Respondent / Plaintiff

Procedural Posture

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

Legal Issues

  1. 1 Whether appellant was a "manufacturer or producer" under s.2(a)(ii) of the Excise Tax Act
  2. 2 Whether excise and sales taxes were payable on the price at which Canadian Radio sold to the appellant or on the price at which the appellant sold to its distributors
  3. 3 Whether the contract between appellant and Canadian Radio was a contract of sale of future goods or an agency/manufacture‑for arrangement

Ratio Decidendi

Majority held appellant was a "manufacturer or producer" within s.2(a)(ii) because Canadian Radio manufactured the goods for the appellant, the appellant exercised complete control over production and used patent and trade‑mark rights; therefore excise and sales taxes were properly payable on the prices charged by the appellant to its distributors under ss.23 and 30 of the Excise Tax Act. The statutory wording and French text support extending "manufacturer" to such a party; The King v. Shore approved.

Court Disposition

Appeal dismissed; judgment of the Exchequer Court affirmed; costs awarded to the respondent.

Orders

  • Appeal dismissed
  • Judgment of the Exchequer Court affirmed