The appellant ("Health Quest") distributed footwear for the relief of various disabling conditions of the foot.. The Minister reassessed the taxpayer on the basis that many of the shoes sold were not zero-rated supplies under s. 24.1 of Part II of Schedule VI of the ETA. The Minister's pleadings stated that the appellant made zero-rated supplies of footwear "which were specially modified...or were specially designed...for persons with physical disabilities," and then stated:
the Appellant also supplied other products which were not zero-rated pursuant to Schedule VI of the Act; and
during the periods under appeal, the Appellant failed to collect tax of not less than $42,274.72 on its supply of products which were not zero-rated pursuant to Schedule VI of the Act.
Campbell J found that, as these were not assumptions of fact but rather of mixed fact and law, the Minister was not entitled to rely on them (as per Anchor Pointe). The Minister was not otherwise able to prove that s. 24.1 did not apply, so that Health Quest's appeal was allowed.