Stearns Catalytic Ltd. v. The Queen, 90 DTC 6286, [1990] 1 CTC 398 (FCTD) -- summary under Class 29

By services, 28 November, 2015

A stock of spare parts which the taxpayer kept on hand for potential use in the event of machine or equipment failure did not qualify as property "to be used" for the purpose of manufacturing or processing goods for sale for the purposes of the definition of qualified property" in s. 127(10)(c)(i) of the Act (now s. 127(9)) and paragraph (a)(i) of the description of Class 29 property. McNair, J. stated (p. 6294):

"The words in subparagraph 127(10)(c)(i) 'to be used' connote an actual physical or functional use of the prescribed machinery and equipment and spare parts stocked on shelves as an assurance against possible mechanical breakdown do not come within that concept of used, regardless of the soundness of the underlying business policy in stocking them."

Topics and taglines
Tagline
stock of spare property was not property "to be used" in M&P
Words and phrases
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
339807
Extra import data
{
"field_legacy_header": "<a id=\"StearnsClass29\"></a><strong><em>Stearns Catalytic Ltd. v. The Queen</em></strong>, 90 DTC 6286 (FCTD)",
"field_override_history": false,
"field_sid": "",
"field_topic_category": ""
}
Workflow properties
Workflow state