Canadian National Railways Co. v. Canada
T-2458-91 / T-2425-91
Denault J.
24/3/93
17 pp.
Appeal from decision of Canadian International Trade Tribunal (CITT) under Excise Tax Act, ss. 81.24, 81.28 -- Plaintiffs transporting metallurgical coal from mine sites to smelters and thermal coal from mine sites to power generation plants -- Locomotives used to transport coal and woodchips consuming diesel fuel in respect of which sales tax and petroleum compensation charges paid under Excise Tax Act and Energy Administration Act -- CN and CP applications for rebate of fuel tax on gasoline or diesel fuel refused -- Notices of objection rejected by Minister -- CITT holding transportation of coal by CN and CP not within definition of mining in Excise Tax Act, s. 69 as not "constituting processing of ore from a mineral resource to the prime metal stage or its equivalent" -- Appellants entitled to rebate on fuel tax and petroleum compensation charges paid if transportation activities within meaning of "mining" in Act, s. 69-No text book meaning associated with term "prime metal stage" -- Coal subject to various processes when in hands of customers -- In case of statutory interpretation, applicable approach set out in Stubart Investments Ltd. v. The Queen, [1984] 1 S.C.R. 536 (words-in-total-context) -- No scientific or clearly understood trade meaning attributed to "prime metal stage or its equivalent"-Proper approach to determine what "prime metal stage" means and to apply definition to coal -- Equivalent of prime metal stage in case of coal when highest concentration of carbon can be obtained -- Not attained when plaintiffs transported material from mine site to customers -- Sense of "purity" attributed to "prime metal" consistent with various dictionary meanings and with intention of Parliament -- "Pure" as opposed to "first in time" sense to be given to "prime metal" -- Act not limiting word "processing" to operations conducted at mining site -- Mining consisting of all processing operations needed to bring coal from coal deposit to point where highest concentration of carbon is obtained, i.e. equivalent of prime metal stage -- Plaintiffs consuming diesel fuel for use in mining under Act, s. 69 -- Appeal allowed -- Excise Tax Act, R.S.C., 1985, c. E-15, s. 69.