Sturdy Truck Body ( 1972 ) Ltd. v. Canada
T-2218-89
Tremblay-Lamer J.
12/5/95
12 pp.
Appeal from Canadian International Trade Tribunal (Tribunal) decision plaintiff's sales tax exemption claim correctly reassessed by Revenue Canada-Plaintiff importing, manufacturing truck parts and truck bodies-Tax assessment policy with respect to Act, s. 29(1) exempting certain service bodies designed for heavy chassis from sales tax not always clear -- Plaintiff not collecting excise tax on service bodies due to belief based on indication from government exemption applicable as truck bodies meeting weight carrying capacity requirement-Issue estoppel: estoppel can only lie against the Crown when an exercise of non-statutory discretion is involved; Court to determine correct interpretation regardless of Crown's past interpretation -- Doctrine of legitimate expectations: doctrine cannot be used to supersede statutory requirements, doctrine only creating procedural rights -- Case turning on interpretation of expression "designed for" permanent installation: words relating to concept in mind of manufacturer as to nature of article and intended use -- Where evidence showing article used in different manner than claimed by manufacturer, rebuttable presumption existing to effect article not designed for use claimed -- In case at bar, manufacturer claiming service bodies designed for heavy chassis, but as majority of bodies installed on light chassis, bodies presumed to be designed for light chassis and burden resting on manufacturer to demonstrate otherwise -- S. 29(1) ambiguity rendering interpretation favouring taxpayer acceptable if reasonably supported by evidence -- Such not case as basic design of service body not wide enough for heavy trucks and would not fit dual wheels found on heavy trucks -- Action dismissed -- Excise Tax Act, R.S.C., 1985, c. E-15, s. 29(1).