Federal Commissioner of Taxation v Butcher [1935] HCA 46; (1935) 53 CLR 82 (20 June 1935)

HIGH COURT OF AUSTRALIA

The Federal Commissioner of Taxation Plaintiff; and Butcher Defendant.

H C of A

20 June 1935

Rich, Starke, Dixon, Evatt and McTiernan JJ.

E. M. Mitchell K.C. (with him Betts), for the plaintiff.

McIntosh, for the defendant.

The following written judgments were delivered:—

June 20

Rich, Dixon and McTiernan JJ.

We think this case is stronger in favour of the Crown than that of Riley[1], judgment in which is delivered to-day.

In our opinion the order should be:—Question in the special case answered: Yes. Pursuant to the agreement of the parties, enter judgment in the action for the plaintiff for £4 11s. 11d. with costs.

Starke J.

The defendant carries on the business of developing photograph films exposed by amateur photographers, and making prints from the films after development. The films and the prints are handed over to the taxpayer's customers on payment of a charge made by the defendant. The question submitted by the parties is whether the prints are goods manufactured in Australia within the meaning of the Sales Tax Assessment Act (No. 1) 1930-1935. In my opinion, the answer should be in the affirmative, and for the reasons given by me in the photography case (Federal Commissioner of Taxation v. Riley[2]).

Judgment should follow the agreement of the parties.

Evatt J.

Although the question is not so plain as in Riley's Case[3], here, too, the taxpayer should succeed. The question asked in the stated case should be answered in the negative.

Question in the special case answered: Yes. Pursuant to the agreement of the parties, enter judgment in the action for the plaintiff for £4 11s. 11d. together with additional tax upon the amount of tax unpaid at the rate of ten per cent per annum from 22nd January 1935 until payment. Defendant to pay costs.

Solicitor for the plaintiff, W. H. Sharwood, Commonwealth Crown Solicitor.

Solicitor for the defendant, J. F. Arnott.

[1] Ante, p. 69.

[2] Ante, p. 69.

[3] Ante, p. 69.