Caisse Populaire de Daveluyville ( ARO ( 1984 ) Inc. ) v. Canada
T-1091-91
Dubé J.
26/5/94
20 pp.
Action by which plaintiff denied being subject to payment of sales tax after inventory of ARO company, which had declared bankruptcy, sold between September 4 and 30, 1987 in execution of security which it held on that company's inventory -- By notice of assessment dated March 1, 1988, defendant claimed $17,967.02 from Caisse as uncollected sales tax, fine and interest on sale of property in question -- Excise Tax Act, s. 27(1) providing federal sales tax payable by "manufacturer or producer" at time goods delivered to buyer -- S. 27(3) providing where person not manufacturer or producer acquires from one of those persons right to sell goods, subject to payment of tax as if sale made by manufacturer or producer -- Caisse in fact continued business of manufacturer or producer as assignee of inventory within meaning of Act, s. 2(1)(a) -- Facts indicated it was Caisse which could benefit from continuation of production as ARO president no longer interested in his business -- Production of furniture completed due to additional investment of $50,000 by Caisse -- Caisse controlled ARO account during period in question and received all money collected by ARO, in particular for sales tax, and Caisse alone benefited from it -- Caisse not covered by Act, s. 2(1)(b) as rights referred to must be understood ejusdem generis with list contained therein -- As regards Act, s. 27(3), Caisse indeed person who acquired right to sell goods -- Action dismissed -- Excise Tax Act, R.S.C. 1970, c. E-13, ss. 2(1)(a),(b), 27(1), (3).