Précis: The taxpayer manufactured various food products. CRA took the position that three of them were subject to GST/HST and not exempt supplies: ginger, granola and “sticks” (made of wheat, rice and spelt). The Tax Court found that the ginger and granola were, on the evidence, groceries and therefore exempt supplies. The “sticks” were found to be a snack product and therefore not an exempt supply. The taxpayer was entitled to costs since it succeeded on 2 of the 3 disputed items; failing an agreement as to the amount of costs the parties were given 60 days to make submissions on costs.
Ike Enterpreises Inc. v. R. - TCC: Ginger and granola were food stuffs not snacks and therefore GST/HST exemptREAD MORE »