NCS International Inc. v. The Queen
T-2659-92 / T-2661-92
Joyal J.
16/10/96
11 pp.
Appeals from Crown's refusal to apply to plaintiffs policy outlined in Memorandum ET302-Plaintiffs distributing products on/in reusable containers-Memorandum ET 302 allowing manufacturers who sold goods under taxable conditions to account for tax on returnable containers when containers shipped out, instead of when purchased or imported-Under Memorandum manufacturers required to request permission from Minister to take deduction of tax paid on those containers on hand at date of changeover-As goods for which containers designed to deliver exempt from sales tax, sales tax could not be accounted for on containers when goods sold-Applications by plaintiffs to avail themselves of optional accounting method filed in late December 1990-Goods and Services Tax (GST), imposing different taxing procedures, effective January 1, 1991-End of Federal Sales Tax (FST)-Confusion between some local or regional Excise offices as to grounds for refusal-Evidence some applications accepted-Plaintiffs' applications refused because, among other things, legislative provisions on which ET302 based repealed effective January 1, 1991-Appeals dismissed-Policy set out in ET302 purely administrative-Discretion exercisable by Crown must be exercised equitably and responsibly-Refusal, based on administrative exigencies, requirements, adequately motivated by pending new taxation scheme-That some applications accepted by insufficiently briefed regional offices not sufficient to establish right to treatment under ET302-Underpinnings of ET302 lost when new tax regime coming into force.