Appeal from Tax Court decision allowing taxpayer's appeal against Minister's assessment -- Income Tax incentives at issue designed to encourage production of Canadian manufactured and processed goods placed on domestic and foreign markets in competition with foreign manufacturers -- Defendant running commercial bookbinding business-Issue whether defendant manufactures or processes goods for sale thus entitling business to tax incentives or merely sells labour and material -- In determining incentive entitlement, Federal Court of Appeal adopting Crown Tire Service Ltd. v. The Queen,  2 F.C. 219 (T.D.) approach, requiring (1) distinction between contract for sale of goods and contract for work and materials; and (2) interpretation of words «goods for sale or lease» according to general law of sale or lease (Canada v. Coopers & Lybrand Ltd.,  1 F.C. 830 (C.A.))-Distinction between contract for work and materials and contract for sale of goods: under contract for work and materials, property in material affixed to customer's property and passing by accession; under contract for sale of goods, article sold to customer with subsidiary and incidental agreement to affix it to customer's property -- Case at bar constituting contract for work and materials as: (1) defendant's price list not distinguishing between goods and labour; and (2) defendant's invoices not suggesting sale of goods[cad 211]Distinction between repair and non-repair cases not relevant where contracts for work and material-Payment of provincial or federal tax not determining factor-Designations used by accountant in financial statements not determining factor -- Assumption of risk associated with selling according to price list not converting contract for work and materials to contract for sale of goods -- Reference to word "product" in warranty not determining factor -- Bookbinding business not constituting sale of goods -- Parliament intending to exclude certain types of manufacturing and processing from incentives by using words "goods for sale or lease" -- Judge bound by Coopers & Lybrand decision -- Appeal allowed.