Telstra Corporation Ltd & Anor v The Commissioner of Taxation of the Commonwealth of Australia [1995] FCA 423

IN THE FEDERAL COURT OF AUSTRALIA ) VICTORIA DISTRICT REGISTRY ) No. VG224 of 1992 GENERAL DIVISION ) BETWEEN: TELSTRA CORPORATION LTD. (formerly AUSTRALIAN AND OVERSEAS TELECOMMUNICATIONS CORPORATION LIMITED) Applicant AND: THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA Respondent CORAM: Jenkinson J. PLACE: Melbourne DATE: 26 June, 1995 REASONS FOR JUDGMENT Trial of an action. By writ issued out of the High Court of Australia the applicant claimed declarations that goods called over voltage protection cassettes and goods called main distribution frame terminating blocks, both of which were and are items of equipment used in the applicant's telephone exchanges, are exempt from sales tax. The action was remitted to this court shortly after it had been commenced. Sub-section 5(1) of the Sales Tax (Exemptions and Classifications) Act 1935 provides:

"Notwithstanding anything contained in any Sales Tax Assessment Act, sales tax shall not, subject to this section, be payable upon the sale value of any goods covered by any item or sub-item in the first column of the First Schedule under any Act specified in the second column of that Schedule opposite that item or sub-item."

At relevant times, that is between 1 October 1987 and the commencement of the action on 3 June 1992, the First Schedule included this item: "90C. (1)Electrical fittings and Nos. 1 to 9 accessories (including electronically operated electrical fittings and accessories) and electrical materials, being goods of a kind used exclusively or primarily and principally as part of fixed electrical installations in consumers' premises, but not including - (a) bell equipment, burglar alarm equipment, fire alarm equipment, recording equipment and elect- ronic equipment (other than electronically operated electrical fittings and access- ories), (b) brackets, canopies, chains, hooks and galleries; (c) candelabra, chandeliers, elect- roliers, electric light globes, lamps and tubes, pendants, shades, bowls and reflectors; (d) condensers, converters, starters and transformers; (e) electrically operated appliances, apparatus or machines; (f) engines, alternators, primary and secondary batteries and