In finding that heavy cloth purchased by a Hutterian colony (which was engaged in a farming business) to be made into work clothes for its members was eligible for the ITCs claimed by the colony for 50% of the GST payable on the purchases, Malone J.A. indicated (at para. 25):
Once an item is found to be acquired and used in connection with the commercial activities of a GST registrant and that item directly or indirectly contributes to the production of articles or the provision of services that are taxable, then an ITC is available using the formula in that subsection.
In a dissenting opinion, Evans J.A. agreed with the majority that "for the goods to be acquired for use 'in the course of commercial activities', there must be a functional connection between the needs of the business and the goods" (para. 31), but disagreed as to whether the connection was sufficient on the present facts.