Adorable Junior Garments Inc. v. M.N.R.
T-2593-94
Simpson J.
20/12/95
12 pp.
Judicial review of Detailed Adjustment Statement (DAS)-Applicant manufacturing women's jackets, coats- Also importing coats, jackets manufactured to its specifications-Applicant applying for, receiving payment for remission of customs duties for 1989 pursuant to Outerwear Fabrics and Outerwear Apparel Remission Order-Receiving advance payments equalling 75% of amounts claimed for 1990 to 1992-Audit disclosing applicant dramatically reducing Canadian production (after 1988) so that instead of being substantial Canadian manufacturer, becoming net importer of outerwear garments-Auditor determining applicant overpaid for 1989, not entitled to any remission thereafter-DAS assessing applicant as owing interim advance payments for 1990 to 1992, which applicant repaid-Application allowed-(1) In future, Court should decline to hear applications for judicial review of DAS decisions, given alternative remedy of appeal under Customs Act, s. 144-Court exercising discretion to dispose of application on merits at request of both parties-(2) Remission Order, s. 2 defining "outerwear apparel manufacturer" as person primarily engaged in design, marketing of apparel-No reference to manufacturing, unlike Blouses and Shirts Remission Order-"Manufacturing" introduced in definition of "primarily engaged" in Revenue Canada Memorandum-Applicant meeting requirement of definition of "outerwear apparel manufacturer" when read without reference to Memorandum-Remission Order intended to encourage Canadian outerwear apparel production- Difference between legislation including incentives to encourage Canadian production, i.e. penalties for reduced production and compensation on sliding scale, and legislation creating specific production quotas-Remission Order in former category; language unambiguous-Quota imposed in Memorandum not justified by terms of Remission Order and cannot be used as basis for denial of remission duties- Outerwear Fabrics and Outerwear Apparel Remission Order, SOR/88-334, s. 2-Blouses and Shirts Remission Order, SOR/88-332, s. 2-Customs Act, R.S.C., 1985 (2nd Supp.), c. 1, s. 144 (as am. by S.C. 1990, c. 8, s. 50).