Decisions

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Ottawa, Monday, April 25, 1994

Appeal No. AP-93-071

IN THE MATTER OF an appeal heard on February 14, 1994, under section 81.19 of the Excise Tax Act, R.S.C. 1985, c. E-15;

AND IN THE MATTER OF a decision of the Minister of National Revenue dated April 30, 1993, with respect to a notice of objection served under section 81.17 of the Excise Tax Act.

BETWEEN

COSMAN INTERNATIONAL INC. Appellant

AND

THE MINISTER OF NATIONAL REVENUE Respondent

The appeal is dismissed.

W. Roy Hines ______ W. Roy Hines Presiding Member

Kathleen E. Macmillan ______ Kathleen E. Macmillan Member

Charles A. Gracey ______ Charles A. Gracey Member

Michel P. Granger ______ Michel P. Granger Secretary

The sole issue in this appeal is whether the appellant is entitled to a federal sales tax inventory rebate under section 120 of the Excise Tax Act even though its application was filed on January 3, 1992.

HELD: The appeal is dismissed. Although the Tribunal sympathizes with the appellant, the Tribunal's jurisdiction is governed by statute. In an appeal under the Excise Tax Act, the Tribunal must apply the law, as it interprets it, to the facts of the case. Subsection 120(8) of the Excise Tax Act is clear as to the time limitation applicable in this instance, that is, December 31, 1991, which the Tribunal has no jurisdiction to extend.

Place of Hearing: Ottawa, Ontario Date of Hearing: February 14, 1994 Date of Decision: April 25, 1994
Tribunal Members: W. Roy Hines, Presiding Member Kathleen E. Macmillan, Member Charles A. Gracey, Member
Counsel for the Tribunal: Gilles B. Legault
Clerk of the Tribunal: Janet Rumball
Parties: Walter R. Cosman, for the appellant Anne M. Turley, for the respondent

This is an appeal under section 81.19 of the Excise Tax Act [1] (the Act) of a determination rejecting an application for a federal sales tax (FST) inventory rebate filed by the appellant, which determination was later confirmed by the Minister of National Revenue.

In accordance with rule 25 of the Canadian International Trade Tribunal Rules, [2] the parties submitted an agreed statement of facts, and the Tribunal, after issuing a public notice of its intention, proceeded to dispose of the matter by way of written submissions on February 14, 1994.

The sole issue in this appeal is whether the appellant is entitled to an FST inventory rebate under section 120 of the Act even though its application was filed after December 31, 1991.

Subsection 120(8) of the Act provides that:

No rebate shall be paid under this section unless the application therefor is filed with the Minister before 1992.

In this case, the parties agreed on the fact that the application was filed on January 3, 1992. However, the appellant contended that, because of the recession, it had to terminate the employment of two employees, including its office manager who was in charge of the accounting and inventory operations. Moreover, during 1991, the appellant was very busy carrying on business, given new pricing and confusion resulting from the coming into force of the Goods and Services Tax. The appellant claimed that the rejection of its rebate application, due to it being filed three days after the time limitation, is an extreme penalty.

Although the Tribunal sympathizes with the appellant, the Tribunal's jurisdiction is governed by statute. In an appeal under the Act, the Tribunal must apply the law, as it interprets it, to the facts of the case. Subsection 120(8) of the Act is clear as to the time limitation applicable in this instance, that is, December 31, 1991, which the Tribunal has no jurisdiction to extend. As the rebate application was filed on January 3, 1992, the Tribunal must dismiss the appeal.

Consequently, the appeal is dismissed.

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1. R.S.C. 1985, c. E-15.

2. SOR/91-499, August 14, 1991, Canada Gazette Part II, Vol. 125, No. 18 at 2912.

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Initial publication: May 29, 1997