Words and Phrases - "confectionary"

The appellant sold crystallized ginger; sticks (made of wheat, rice and spelt); and granola in special packaging in bulk to retailers for sale in their bulk bins. Before turning to these individual items, Smith J stated (at paras 47-48):

[T]he Act…ensure[s] that basic groceries are not subject to GST. …

[T]he exclusions listed in section 1 of Part III…should be narrowly construed. To take a broad interpretation of such exclusions would defeat the policy objective noted above.

Smith J found that the crystallized ginger was zero-rated, finding (at paras 53, 54, 55, 57 and 58):

The first ingredient was … ginger.

The Appellant …had never sold this product as a candy or confectionery nor seen it sold as such by its customers in their bulk bins.

Taking a textual approach to the interpretation of section 1(e) of the Act, I find that the opening words “candies, confectionery that may be classed as candy, or any goods sold as candies”, clearly suggest that it is primarily intended to exclude food that is commonly viewed and sold as candy where the first ingredient is in fact sugar or some other natural or artificial sweetener. …

[M[ost consumers would be surprised to learn that products sold in the baking section of a typical grocery store, could be subject to GST

[T]he crystallized ginger …was sold as a baking ingredient similar to a dried fruit.