Seventeen spare parts having a cost in excess of $1 million that the taxpayer purchased to be held until such time as identical parts in a continuous-operation paper machine broke down, represented capital assets (includable in Class 29) rather than inventory. Hugessen J.A. found that the interpretation accorded to the phrase "to be used directly or indirectly by him" in the Class 29 definition had been interpreted too narrowly in the Stearns Catalytic case (90 DTC 6286). In particular, this expression related "to property that is not necessarily used immediately after it is purchased" and "it is sufficient if there is a reasonable expectation that the property would be used in the future" (at p. 6065).
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