Tanu Pty Ltd V The Commissioner of Taxation of the Commonwealth of Australia [1998] FCA 348

FEDERAL COURT OF AUSTRALIA TAXATION - SALES TAX -composite contract for developing exposed films and making prints for a global price - whether sales tax payable as on a retail sale of prints by reference to a notional wholesale selling price reflecting the developing as well as the printing or whether liability attached at the time of delivery of the negatives and prints both by reference to a charge for developing ascertained by apportioning the global price and a notional wholesale selling price of the prints. Consideration of legislative history and policy underlying the provisions of the Sales Tax Assessment Act 1992 as applicable to developing and printing contracts. Whether credit available on basis that the negatives are to be treated as input goods and the prints as output goods, the former being a "sufficient link" with the latter as required by s 52 of the Sales Tax Assessment Act 1992. Whether a "manufacture-related activity" as defined in Item 18(5) of the Sales Tax (Exemptions and Classifications) Act 1992 - whether goods also fall within Item 18. WORDS AND PHRASES manufacture goods manufacture-related activity Acts Interpretation Act 1901, s 15AB Sales Tax Assessment Act 1992, ss 95, 16, 22, 52 Sales Tax (Exemptions and Classifications) Act 1992 Sales Tax Assessment Act (No. 1) 1930, ss 3(5), 3(6), 17A Genex Corporation Pty Ltd v Commonwealth of Australia (1991) 30 FCR 193 - followed. Commonwealth of Australia v Genex Corporation Pty Ltd (1992) 176 CLR 277 - cited. Federal Commissioner of Taxation v Riley (1935) 53 CLR 69 - cited Federal Commissioner of Taxation v Butcher (1935) 53 CLR 82 - considered. Kodak (Australasia) Pty Ltd v Commonwealth of Australia (1990) 21 NSWLR 402 - cons. Commonwealth of Pennsylvania v Perfect Photo Inc 371 A 2d 580 (1977) (Commonwealth Court of Pennsylvania) - cited. Colorcraft Corp v Illinois Department for Revenue 482 NE 2d 1038 (1985) (Appellate Court of Illinois, 4th District) - cited. Brayson Motors Proprietary Limited (in liq.) v Federal Commissioner of Taxation (1983 - 1984) 156 CLR 651 at 657 - considered. Pacific Film Laboratories Pty Ltd v Federal Commissioner of Taxation (1970) 121 CLR 159 - considered. Deputy Federal Commissioner of Taxation (SA) v Ellis & Clark Limited (1934) 52 CLR 85 at 89 - cited. Pepsico Australia Ltd v the Federal Commissioner of Taxation (1997) 147 ALR 497 at 503 - followed. Case C80 (1953) 3 TBRD 452 at 460-461 - cited. TANU PTY LTD v THE COMMISSIONER OF TAXATION NG 493 of 1997 HILL J SYDNEY 9 APRIL 1998