IBM Canada Ltd. v. Canada
T-1539-93 / T-1540-93
Muldoon J.
25/2/98
10 pp.
Appeals from denial of refund applications under Act, s. 68.22 for federal sales tax paid on goods purchased and imported by plaintiff, and given away, in accordance with written warranty, as free replacement parts from January 1989 to December 31, 1991-Act, s. 68.22 providing for refund to licensed manufacturer of sales tax paid in respect of goods given away as free replacement parts under written warranty-Plaintiff licensed manufacturer in business of selling and leasing computers and related equipment which it imports and manufactures-Appeal allowed-In spite of defendant's argument "plain meaning" interpretation of Act leading to absurdity, when neither any doubt as to meaning of legislation nor ambiguity in its application to facts, then statutory provision must be applied regardless of its object or purpose: Alberta (Treasury Branches) v. M.N.R.; Toronto-Dominion Bank v. M.N.R., [1996] 1 S.C.R. 963-Act, s. 68.22 without doubt as to its meaning in regard to contentious issue herein, and without ambiguity in its application to facts-As plaintiff licensed manufacturer and goods in question part of plaintiff's normal inventory, replacement parts given away by IBM pursuant to written warranty not subject to tax on plain meaning of legislation, but in tax-paid inventory-Act, s. 68.22 operating to avoid double taxation upon licensed manufacturers, according to Minister-What Parliament enacted and how its words are formulated, unless patently (or even latently) absurd, impart meaning of its legislation: Minister of National Revenue (Customs and Excise) v. Baird (Tom) & Associates Ltd. (1997), 221 N.R. 201 (F.C.A.); affg (1996), 120 F.T.R. 218 (F.C.T.D.)-Administrative policy neither needed nor admissible there or here-Excise Tax Act, R.S.C., 1985, c. E-15, s. 68.22 (as enacted by R.S.C., 1985 (2nd Supp.), c. 7, s. 34).