Perrier Group of Canada Inc. v. Canada
T-495-91 / T-496-91
Reed J.
1/10/93
10 pp.
Actions against decision by Canadian International Trade Tribunal confirming MNR's assessment with respect to plaintiffs' product -- Whether Perrier "carbonated beverage" under Excise Tax Act, Schedule III, Part V -- Perrier subject to tax imposed by Act, s. 50(1) if carbonated beverage -- If not, exempt from tax pursuant to s. 51 -- Perrier mineral water containing carbon dioxide -- Carbon dioxide content in bottled Perrier approximately 6,500 mg/L -- Argumentation centred around fact English text using "drink" and "beverage" while in French only "boisson" employed -- Dictionary definitions cited by plaintiff indicating broad and narrow usage of term beverage-Beverage defined broadly as any liquid for drinking, more narrowly as referring to liquids other than water prepared before being consumed -- English word beverage used in variety of ways -- Used in general way as being equivalent of drink, also used in more specific ways -- Ordinary usage of word not excluding water -- Term "beverage" not equivalent to water -- Overall scheme of Act not to tax natural products -- Tax attracting commodities listed in lettered paragraphs to section 1 of Part V including products subjected to no more and probably often less processing activity than exists in bottling Perrier, also basically natural products-Many natural products subjected to minimal processing included in taxable items -- Types of items usually taxed luxuries or ones nutritionally non-essential -- Term "carbonated beverages" not intended to include only artificially manufactured carbonated beverages, also including natural products such as Perrier-Actions dismissed -- Excise Tax Act, R.S.C., 1985, c. E-15, ss. 50, 51, Schedule III, Part V.