Herbert Adams Pty Ltd v Federal Commissioner of Taxation
(1932) 47 CLR 222(1932) 2 ATD 31
(Judgment by: Evatt J)
Herbert Adams Pty Ltd
v Federal Commissioner of Taxation
Judges:
Rich J
Starke J
McTiernan J
Dixon J
Evatt J
Subject References:
Taxation and revenue
Sales tax
Sponge cake
Pastry
Legislative References:
Sales Tax Assessment Act (No 1) 1930 (Cth) No 25 - s 20
Judgment date: 4 August 1932
Sydney
Judgment by:
Evatt J
During the relevant period the appellant manufactured 40,692 "boards of sponge" and 7,082 dozens of "daisy and almond sponges." The ingredients of these articles included eggs, sugar and flour. After baking, such flavourings, icings, jams, and creams were added "as may be desired to produce the finished article." The appellant claimed that these goods came within the description of "pastry but not including cakes or biscuits" (First Schedule to Act No. 25 of 1930) and were thereby exempt from sales tax. The appeal fails if the goods are "cakes."
The appellant says that the goods are "sponges," which is true enough. The witness Camille Richoux said of such "sponge" that "it is nothing else but a light cake ... In any shape or form you call it sponge. It is cake. You can mould it to any shape you like but it is a `sponge."'
Samples of the appellant's manufacture were produced, and in my opinion the goods made were undoubtedly "cakes." According to the Oxford Dictionary a "sponge" is "a very light sweet cake made with flour, milk, eggs, and sugar." A dictionary reference may not be necessary. Perhaps this is one of the few things that every schoolboy knows.
The appeal should be dismissed with costs.