Commissioner of Taxation v Silverton Tramway Co Ltd [1953] HCA 79

High Court of Australia Dixon C.J. Webb and Taylor JJ. Commissioner of Taxation v Silverton Tramway Co Ltd [1953] HCA 79

ORDER Question in the special case stated answered that the defendant was not on 5th October 1951 a public transport authority within the meaning of Item 77 of the First Schedule to the Sales Tax (Exemption and Classifications) Act 1935-1951. Enter judgment for the plaintiff for the sum of £17,214 14s. 2d. with the taxed costs of the action, including the costs of the special case.

Cur. adv. vult.

The following written judgments were delivered:—

Nov. 25 Dixon C.J.

The question raised by this case stated is whether the defendant the Silverton Tramway Co. Ltd. is a public transport authority within the meaning of Item 77 of Div. XI of the First Schedule of the Sales Tax (Exemptions and Classifications) Act 1935-1951 so as to be exempt from sales tax in respect of the importation of four eight-wheeled coupled locomotives and tenders imported by the defendant company at Port Pirie on 5th October 1951. Item 77 exempts goods for use (whether as goods or in some other form) by public transport authorities exclusively in, or exclusively in connection with the establishment, conduct or maintenance of, transport services. The question turns in part on the meaning to be placed upon the words "public transport authorities" and in part on the characteristics of the defendant company and the sufficiency of such characteristics to constitute it an "authority" and a "public transport authority".

The defendant company was incorporated under the law of Victoria as a trading company on 22nd December 1894. It appears to have been the successor in title to the undertaking of another company bearing the same name but then in liquidation. The undertaking is that called the Silverton Tramway. The defendant company took all the rights, powers, privileges and concessions conferred by the Silverton Tramway Act 1886-1888 N.S.W.. As might be expected, the objects contained in the memorandum of association of the defendant company were wide, but doubtless the leading provision was one authorizing it to carry on the business formerly carried on by the old company. Another important object was to carry on the business of carriers of passengers goods and things of every kind, and cattle and livestock of every kind.