1068827 ONTARIO INC. O/A GRACE MOTORS Appellant v. HER MAJESTY THE QUEEN IN RIGHT OF, 2011 FCA 304

Federal Court of Appeal Cour d'appel fédérale Federal Court of Appeal Cour d'appel fédérale Date: 20111108 Docket: A-66-11 Citation: 2011 FCA 304 CORAM: NOËL J.A. NADON J.A. SHARLOW J.A. BETWEEN: 1068827 ONTARIO INC. O/A GRACE MOTORS Appellant and HER MAJESTY THE QUEEN IN RIGHT OF CANADA AS REPRESENTING THE MINISTER OF NATIONAL REVENUE Respondent Heard at Ottawa, Ontario , on November 8, 2011. Judgment delivered from the Bench at Ottawa, Ontario , on November 8, 2011. REASONS FOR JUDGMENT OF THE COURT BY: NOËL J.A. Date: 20111108 Docket: A-66-11 Citation: 2011 FCA 304 CORAM: NOËL J.A. NADON J.A. SHARLOW J.A.

BETWEEN: 1068827 ONTARIO INC. O/A GRACE MOTORS Appellant and HER MAJESTY THE QUEEN IN RIGHT OF CANADA AS REPRESENTING THE MINISTER OF NATIONAL REVENUE

Respondent REASONS FOR JUDGMENT OF THE COURT (Delivered from the Bench at Ottawa , Ontario, on November 8, 2011) NOËL J.A. [ 1 ] Despite the able submissions of counsel for the appellant, we are in substantial agreement with the reasons advanced by Madam Justice Heneghan of the Federal Court (reported at 2011 FC 33 ) for holding that excise tax – specifically tax levied in conformity with

section 23 of the Excise Tax Act , R.S.C. 1985, c. E-15, when read in conjunction with sections 7 and 8 of

schedule I – applies to the importation of used motor vehicles in which air conditioning units are installed. [ 2 ] The appeal will be dismissed with costs. “Marc Noël” J.A. FEDERAL COURT OF APPEAL NAMES OF COUNSEL AND SOLICITORS OF RECORD DOCKET: A-66-11 APPEAL FROM A JUDGMENT OF MADAM JUSTICE HENEGHAN OF THE FEDERAL COURT DATED OCTOBER 13, 2011, DOCKET NO. T-407-09. STYLE OF CAUSE: 1068827 Ontario Inc. O/A Grace Motors and Her Majesty the Queen in Right of Canada as representing the Minister of National Revenue PLACE OF HEARING: Ottawa, Ontario DATE OF HEARING: November 8, 2011 REASONS FOR JUDGMENT OF THE COURT BY: Noël, Nadon, Sharlow JJ.A. DELIVERED FROM THE BENCH BY: Noël J.A.

APPEARANCES : David A. MacKenzie FOR THE APPELLANT Sharon Johnston FOR THE RESPONDENT SOLICITORS OF RECORD : Szemenyei MacKenzie Godin LLP London , Ontario FOR THE APPELLANT Myles J. Kirvan Deputy Attorney General of Canada FOR THE RESPONDENT