Rouleau,
J.:
—In
this
case
the
plaintiff
appeals
an
assessment
of
the
Minister
of
National
Revenue
wherein
excise
tax
and
federal
sales
tax
was
levied
on
cooking
wine
imported
by
the
plaintiff
during
the
years
1986
and
1987.
The
plaintiff
Grantham
Foods
Ltd.
("Grantham")
carries
on
the
business
of
food
importation
and
wholesale
distribution
of
food.
During
the
1986
and
1987
taxation
years,
the
plaintiff
imported
cooking
wine
in
bulk
containers
and
repackaged
it
in
four
litre
ugs,
some
of
which
were
sold
directly
to
restaurants
under
the
plaintiff's
own
brand
name
labels.
Others
were
sold
to
the
plaintiff
National
Importers
Ltd.
("National"),
a
company
related
to
the
plaintiff
Grantham,
for
resale
by
National
under
National's
own
brand
name.
Prior
to
1988,
the
plaintiff
Grantham
did
not
remit
any
excise
tax
on
the
bulk
cooking
wine
imported
by
it
nor
did
it
remit
any
federal
sales
tax
on
the
sales
of
the
repackaged
cooking
wine.
By
notice
of
assessment
dated
August
8,
1989,
the
Minister
of
National
Revenue
assessed
the
plaintiff
for
the
following:
(i)
excise
tax
on
the
importation
of
bulk
cooking
wine
for
the
years
1986
and
1987;
(ii)
federal
sales
tax
on
the
sale
of
repackaged
cooking
wine
to
customers
other
than
National
for
the
years
1986
and
1987;
The
plaintiff
filed
a
notice
of
objection
to
the
assessment.
By
notice
of
decision
dated
May
25,
1990
the
Minister
disallowed
the
objection
and
confirmed
the
assessment.
The
plaintiff
now
appeals
the
Minister's
decision
and
seeks
a
declaration
that
the
cooking
wine
which
it
imported
and
sold
is
not
wine
for
the
purposes
of
the
Excise
Tax
Act,
as
well
as
an
order
allowing
the
appeal
from
the
assessment
of
the
Minister
and
instructing
the
Minister
to
refund
all
amounts
remitted
by
the
plaintiff
with
respect
to
the
importation
and
sale
of
the
cooking
wine.
Part
V
of
Schedule
III
of
the
Excise
Tax
Act
provides
for
a
number
of
exemptions
from
the
tax
imposing
sections
of
the
Act.
Section
1
of
the
Schedule
specifically
excludes
the
following
items:
1.
Food
and
drink
for
human
consumption
(including
sweetening
agents,
seasonings
and
other
ingredients
to
be
mixed
with
or
used
in
the
preparation
of
such
food
and
drink),
other
than:
(a)
wine,
spirits,
beer,
malt
liquor
and
other
alcoholic
beverages;
The
plaintiff
maintains
that
the
cooking
wine
which
it
imports
and
sells
is
not
"wine"
for
the
purposes
of
the
Excise
Tax
Act
because
it
is
neither
a
"spirituous
liquor"
nor
an
“alcoholic
beverage".
The
cooking
wine
in
question
is
produced
by
adding
1.5
per
cent
salt
by
weight
to
non-vintage
bulk
wine
and
is
sold
by
the
plaintiff
as
an
ingredient
for
use
in
cooking
and
not
as
an
alcoholic
beverage.
In
fact,
the
addition
of
salt
renders
the
cooking
wine
unfit
to
drink
as
an
alcoholic
beverage.
Section
25
of
the
Act
provides
the
following
definition
of
wine:
25.
In
this
Part,
“wine”
includes
spirituous
liquors
that
are
the
products
of
fruits,
vegetables,
roots,
herbs,
grain,
molasses,
sugar
or
other
fermentable
substances
and
are
obtained
by
the
normal
alcoholic
fermentation
of
the
juices
or
extracts
therefrom
and
not
by
distillation.
I
remain
unconvinced
that
the
plaintiffs’
product
does
not
meet
the
criteria
set
out
in
this
definition
section.
The
meaning
of
the
term
"wine"
in
the
Act
does
not
include
any
reference
to
the
palatability
of
the
wine,
but
rather
refers
to
its
"spirituous"
nature,
that
is,
its
alcoholic
content
and
the
method
whereby
it
is
extracted.
Accordingly,
I
am
unable
to
accept
the
plaintiff's
argument.
In
my
view,
the
addition
of
salt
to
the
product
in
question
and
the
resulting
impotability
of
the
beverage,
does
not
deter
from
the
fact
that
the
plaintiff's
cooking
wine
is
still
wine
as
that
term
is
used
within
the
exception
to
the
exemption
in
section
1,
Part
V
of
Schedule
III.
For
these
reasons
the
plaintiff's
appeal
is
dismissed.
Costs
to
the
defendant.
Appeal
dismissed.
Email this Content