Deputy Commissioner of Taxation v Polaroid Australia Ltd

High Court of Australia Gibbs, J. Deputy Commissioner of Taxation v Polaroid Australia Ltd

ORDER Order Judgment for the defendant with costs. Usual order as to exhibits. Gibbs, J

This action is brought by the Deputy Commissioner of Taxation to recover the balance of sales tax allegedly payable under and in accordance with the provisions of the Sales Tax Assessment Act (No. 1) 1930-1966 (Com.) in respect of Polaroid Land film packs and Polaroid picture rolls imported by the defendant and either sold by the defendant or applied to its own use. Neither the fact the sales tax was payable nor the sale value of the goods is in dispute. The sole question in issue is at what rate the tax was payable and that question, in the circumstances of this case, depends on whether or not the goods came within one of the descriptions contained in the Second Schedule to the Sales Tax (Exemptions and Classifications) Act 1935-1967 (Com.). If the goods were not covered by the Second Schedule, the rate was 12½ per cent in respect of goods sold by the defendant or applied by it to its own use before 14 August 1968(s 4(c) of Sales Tax Act (No. 6) 1930-1964 (Com.) and ss 2and 4 of the Sales Tax Act (No. 6) 1968 (Com.)) and 15 per cent in respect of goods so sold or applied after that date (s 4(c) of the Sales Tax Act (No. 6) 1930-1968). If the goods were within the Second Schedule the rate at all times was 25 per cent (s 4(a) of the Sales Tax Act (No. 6) 1930 (as amended at all material times)). The defendant has paid tax on the footing that the lower rate applies and if the goods were not covered by the Second Schedule no further tax is payable.

The contention on behalf of the Deputy Commissioner of Taxation was that the goods came within Item 42, or alternatively within Item 38, of the Second Schedule.