Decisions

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Ottawa, Wednesday, November 2, 1994

Appeal No. AP-94-017

IN THE MATTER OF an appeal heard on September 21, 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 February 11, 1994, with respect to a notice of objection served under section 81.17 of the Excise Tax Act.

BETWEEN

DIRECT APPLIANCE SALES LTD. Appellant

AND

THE MINISTER OF NATIONAL REVENUE Respondent

The appeal is dismissed.

Robert C. Coates, Q.C. ______ Robert C. Coates, Q.C. Presiding Member

Desmond Hallissey ______ Desmond Hallissey Member

Lyle M. Russell ______ Lyle M. Russell Member

Michel P. Granger ______ Michel P. Granger Secretary

The issue in this appeal is whether the appellant is entitled to a federal sales tax inventory rebate notwithstanding that its rebate application was filed outside the time limit prescribed under subsection 120(8) of the Excise Tax Act.

HELD: The appeal is dismissed. The Tribunal has no authority to make decisions based on equitable considerations.

Place of Hearing: Ottawa, Ontario Date of Hearing: September 21, 1994 Date of Decision: November 2, 1994
Tribunal Members: Robert C. Coates, Q.C., Presiding Member Desmond Hallissey, Member Lyle M. Russell, Member
Counsel for the Tribunal: Robert Desjardins
Clerk of the Tribunal: Anne Jamieson
Appearances: Leon Bleiwas, for the appellant Larissa Easson, for the respondent

This is an appeal under section 81.19 of the Excise Tax Act [1] (the Act) of a determination of the Minister of National Revenue that rejected the appellant's application for a federal sales tax (FST) inventory rebate on the basis that the application was filed outside the statutory time limit.

The issue in this appeal is whether the appellant is entitled to an FST inventory rebate notwithstanding that its rebate application was filed outside the time limit prescribed under subsection 120(8) of the Act.

The appellant does not dispute the fact that its rebate application was filed outside the prescribed time limit. However, the appellant is asking the Tribunal to grant its appeal based on considerations of equity and fairness to the taxpayer. At the outset of the hearing, the Tribunal indicated to the representative of the appellant that the Tribunal must apply the law as it stands and that it cannot dispense equity. Indeed, in response to the Tribunal, after reiterating that the appellant was seeking equitable relief, the representative indicated that he was aware that the Tribunal is not the right forum for such relief.

As stated by the Tribunal on numerous occasions, the Tribunal has no authority to vary a time limit clearly prescribed under the Act or to make decisions based on equitable considerations. In light of the foregoing, the Tribunal is of the view that the appeal must be dismissed.

Accordingly, the appeal is dismissed.

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

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Initial publication: May 20, 1997