Federal Commissioner of Taxation v Rochester

The Federal Commissioner of Taxation commenced an action in the High Court of Australia against G. M. Rochester to recover sales tax allegedly due on the sale of cooked fish and "chips". The defendant demurred to the Commissioner's claim, and the demurrer was referred to the Full Court of the High Court for determination.

The central legal issue before the court was whether the preparation and cooking of fish and "chips" by the defendant constituted "manufacture" or "production" of goods within the meaning of the relevant Sales Tax Assessment Acts, specifically the Sales Tax Assessment Act (No. 1) 1930-1931 and the Sales Tax Assessment Act (No. 1) 1932.

The court, by majority, allowed the demurrer. The judges reasoned that the ordinary meaning of the terms "manufacture" and "production" in common English usage did not extend to the simple act of cooking fish and potatoes. They found that the processes undertaken by the defendant did not result in goods that were commercially distinct from the raw ingredients in a manner that would ordinarily be described as manufactured or produced. The court considered the definitions of "manufacture" in the Acts, including amendments, but concluded that these definitions, when applied according to their common understanding, did not encompass the defendant's activities.

The demurrer was allowed, and judgment was entered for the defendant.