Hussman Store Equipment Ltd. v. M.N.R.
T-2382-90
Rothstein J.
26/6/97
12 pp.
Appeal from CITT finding plaintiff not qualifying for reduced rate of federal sales tax on sale of "Ultraline" metal shelving for supermarkets-Plaintiff submitting qualified for reduced rate of eight per cent sales tax as opposed to twelve per cent as product within Schedule V, Part 1, item 21 "fabricated metal for . . . other structures"-Plaintiff fabricating "raw" steel into fabricated steel components forming, when assembled, shelves-Components only manufactured to order-Shipped in boxes for assembly at site-Some shelving in form of islands, other attached to walls or other equipment i.e. refrigerators-Anchors, bolts not supplied by plaintiff-Crews for assembling, installing, shelving not employed by plaintiff-Appeal dismissed-(1) Whether plaintiff selling fabricated metal for other structures as opposed to shelves in unassembled form-Merely because item can be characterized as unit in unassembled form not disqualifying it from also being characterized as structural metal or fabricated metal for buildings or other structures: Chateau Mfg Ltd v. D/MNR for Customs and Excise, [1984] CTC 43 (F.C.A.)-By that reasoning, even assuming what plaintiff shipped to site shelves in unassembled form, would not be excluded from item 21 on that account-(2) Whether shelves "other structures"-Ejusdem generis rule not invoked to interpret "other structures"-"Other structures" need not be in nature of building-While defensible to apply criteria for determining existence of structure outlined in M.N.R. et al. v. Plastibeton Inc. (1986), 86 DTC 6400 (F.C.A.), contextual analysis of Schedule leading to same result as direct application of those criteria-Court may look to provisions under heading to interpret terms in individual provisions-If "other structures" in item 21 construed as including supermarket shelves, any fabricated metal shelving in houses, other buildings also included-But inconsistent with restrictive way in which Schedule worded with respect to items in interior of building-Supermarket shelving not constituting "other structures"-Excise Tax Act, R.S.C. 1970, c. E-13, s. 27(1) (as am. by S.C. 1986, c. 54, s. 4), (1.1) (as am. by S.C. 1986, c. 9, s. 6; c. 54, s. 4), Schedule V, Part I, Item 21 (as am. by S.C. 1974-75-76, c. 24, s. 21).