The National Bus Co Pty Ltd v The Commissioner of Taxation of the Commonwealth of Australia [1998] FCA 143

FEDERAL COURT OF AUSTRALIA

SALES TAX ‑ Exemptions ‑ Goods for use by person for supply to another under contract if property is to pass to the other under the contract and goods would have been exempt if purchased by the other ‑ Buses operated by taxpayer under agreement with public authority ‑ Buses owned by authority ‑ Lease of buses requires taxpayer to keep in good repair and condition ‑ Spare parts purchased by taxpayer used to effect repairs ‑ Whether for supply to authority under lease ‑ Whether property in parts passes to authority under lease ‑ Whether parts would have been exempt if purchased by authority.

PERSONAL PROPERTY ‑ Chattels ‑ Accession ‑ Lease of buses ‑ Lessee obliged to keep in good repair and condition ‑ Lessee affixes replacement parts to buses ‑ Whether property in parts passes to lessor under lease.

Sales Tax Assessment Act 1992, s 51, Table 3 Item CR5A Sales Tax (Exemptions and Classifications Act) 1992, Sch 1 Items 64, 126, 194

The Commonwealth v Sterling Nicholas Duty Free Pty Ltd (1972) 126 CLR 297 considered Andeloro v Wyong Co‑operative Dairy Society Ltd (1965) 66 SR (NSW) 466 applied Dawson v Deputy Commissioner of Taxation (1984) 84 ATC 4752 considered Rendell v Associated Finance Pty Ltd [1957] VR 604 applied Thomas v Robinson [1977] 1 NZLR 385 applied Lewis v Andrews and Rawley Pty Ltd (1956) 73 WN (NSW) 670 applied Bergougnan v British Motors Ltd (1929) 30 WN (NSW) 61 mentioned Akron Tyre Co Pty Ltd v Kitson (1951) 82 CLR 477 mentioned Chan v Cresdon Pty Ltd (1989) 168 CLR 242 considered Elmslie v Federal Commissioner of Taxation (1993) 46 FCR 576 considered Kiwi Brands Pty Ltd v Federal Commissioner of Taxation (1997) 148 ALR 605 mentioned Deputy Commissioner of Taxation v Stewart (1984) 154 CLR 385 applied Ryde Municipal Council v Macquarie University (1978) 139 CLR 633 distinguished Commissioner of Taxation v Brambles Holdings Ltd (1991) 28 FCR 451 considered