Words and Phrases - "breakfast cereal"
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.
In finding that the granola was not excluded from zero-rating under para. 1(h), Smith J found (at paras 68, 70):
… [M]any types of breakfast cereals can be snacked “right out of the box” and the suggestion on the packaging that you can do so, does not change a breakfast cereal into a snack item or convenience food. ...
While I agree that packaging and labelling will generally carry the day, I find that product placement within the grocery store is equally determinative. … [I]ts customers sold the product in question in the cereal aisle of the grocery store… .
|Locations of other summaries||Wordcount|
|Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(e)||crystallized ginger sold as baking ingredient rather than candy||229|
|Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part III - Section 1 - Paragraph 1(f)||fried sticks were sold as snack and were not baked||215|