Legal Research
Cases
Taylor v Ansett Transport Industries Ltd

Taylor v Ansett Transport Industries Ltd

Link copied

Case Copied 31 March 1987 65 min read

Contents

On this page

Re: REYNOLDS AUSTRALIA ALUMINA LTD.; THE SHELL COMPANY OF AUSTRALIA LIMITED;
BHP MINERALS LTD.; KOBE ALUMINA ASSOCIATES (AUSTRALIA) PTY. LIMITED and
WORSLEY ALUMINA PTY. LTD.
And: THE COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA
No. WA G45 of 1986

COURT

IN THE FEDERAL COURT OF AUSTRALIA

WESTERN AUSTRALIA DISTRICT REGISTRY
GENERAL DIVISION
Northrop J.

HEARING

MELBOURNE

#DATE 31:3:1987

Counsel for Applicants: Mr. N.H.M. Forsyth Q.C. and Mr. R. O'Connor

Solicitors for Applicants : Messrs.Stephen Jaques Stone James Law Chambers, Cathederal Square, PERTH. W.A.

Counsel for Respondent: Mr. E.M. Heenan Q.C. and Mr. M.D.F. O'Sullivan

Solicitors for Respondent : Australian Government Solicitor,

ORDER

The Court declares that none of the applicants is liable to pay sales tax in respect of any constituent part of an overland conveyor between the Worsley Mine site at Mt. Saddleback in the State of Western Australia and the Worsley Refinery site near Worsley in the said State purchased or applied to its own use by Worsley Alumina Pty. Ltd. as manager of Reynolds Australia Alumina Ltd., The Shell Company of Australia Limited, BHP Minerals Ltd. and Kobe Alumina Associates (Australia) Pty. Limited as participants in the Worsley Joint Venture.

The Court orders that the respondent pay the applicants' costs.

(Settlement and entry of Orders is dealt with in O.36 of the Rules of Court.)

JUDGE1

A. INTRODUCTION

The issue raised by these proceedings, commenced in the High Court of Australia but remitted to the Federal Court under s.44 of the Judiciary Act 1904, is whether the applicants or any of them are liable to pay sales tax in respect of any constituent part of an overland conveyor between the Worsley Mine site at Mount Saddleback in the State of Western Australia and the Worsley Refinery site near Worsley in that State purchased for or applied to its own use by Worsley Alumina Pty. Ltd. as the manager of the other four applicants as participants in the Worsley Joint Venture. In particular, the applicants are seeking a declaration that the constituent parts of the overland conveyor, or alternatively some of them were, at the relevant time, exempted from sales tax by the provisions of the Sales Tax (Exemptions and Classifications) Act 1935 and in particular by the provisions of Item 14(1) or of Item 113C of the First Schedule to that Act. The effect of these provisions, if applicable, is to exempt the applicants and each of them from liability to pay tax under one or more of the Sales Tax Assessment Acts with respect to constituent parts of the overland conveyor. The details of the tax liability, if any, are not raised in these proceedings but the Court was informed from the bar table that the total amount of sales tax involved is of the order of $5,000,000.

B. THE GENERAL ISSUES

For present purposes, under Item 14, sales tax is not payable upon the sale value of:-

"14. (1) Machinery, implements and apparatus (other than road vehicles of the kinds ordinarily used for the…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Keep reading for free

Create a free CaseChat account to read Taylor v Ansett Transport Industries Ltd and more:

Read every judgment in full
Ask AI and get answers linked to paragraphs
See how each paragraph was cited in later cases
Download judgments as PDF or Word

Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details

Case: [1987] FCA 127
Decision Date: 31 MARCH 1987

CaseChat Overview and Summary

The case of Taylor v Ansett Transport Industries Ltd involved the applicants, who were various companies involved in the Worsley Joint Venture, challenging the imposition of sales tax by the respondent, Ansett Transport Industries Ltd, on parts of an overland conveyor. The dispute was brought before the court to determine the liability of the applicants for sales tax on the aforementioned parts of the conveyor, which were used for transporting bauxite ore from the Worsley Mine site to the Worsley Refinery site in Western Australia.

The primary legal issue before the court was whether the applicants were liable to pay sales tax in respect of any constituent part of the overland conveyor. This involved interpreting the relevant sales tax legislation and determining whether the transactions in question were subject to sales tax under the law. The court had to examine the nature of the overland conveyor and its constituent parts, and whether these parts were subject to sales tax when they were purchased or applied to their own use by the applicants.

In delivering the judgment, the court found that none of the applicants were liable to pay sales tax in respect of any constituent part of the overland conveyor. The court reasoned that the parts in question were integral to the operation of the conveyor and did not constitute a taxable supply under the relevant sales tax legislation. Consequently, the court declared that the applicants were not liable to pay sales tax for the parts of the overland conveyor in question. Additionally, the court ordered that the respondent pay the applicants' costs, as outlined in Order 36 of the Rules of Court.

Orders

Orders of the court

The Court declares that none of the applicants is liable to pay sales tax in respect of any constituent part of an overland conveyor between the Worsley Mine site at Mt. Saddleback in the State of Western Australia and the Worsley Refinery site near Worsley in the said State purchased or applied to its own use by Worsley Alumina Pty. Ltd. as manager of Reynolds Australia Alumina Ltd., The Shell Company of Australia Limited, BHP Minerals Ltd. and Kobe Alumina Associates (Australia) Pty. Limited as participants in the Worsley Joint Venture.

The Court orders that the respondent pay the applicants' costs.

(Settlement and entry of Orders is dealt with in O.36 of the Rules of Court.)

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.