ATO Interpretative Decision

ATO ID 2004/895 (Withdrawn)

Excise

Energy Grants (Credits) Scheme: off-road credit - retail/hospitality - retail sale of goods or services
FOI status: may be released

This ATO ID is withdrawn from 1 July 2012, the date the Energy Grants (Credits) Scheme Act 2003 was repealed.
Despite its withdrawal, this ATO ID continues to be a precedential ATO view in respect of the period the Act was in force, 1 July 2003 up to and including 30 June 2012.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Status of this decision: Decision Withdrawn 1 July 2012

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Where an entity conducts an enterprise of running a show at particular premises, is the principal purpose of the show enterprise the retail sale of services (other than electricity) for the purposes of subparagraph 53(4)(a)(i) of the Energy Grants (Credits) Scheme Act 2003 (EGCSA)?

Decision

Yes. Where an entity conducts an enterprise of running a show at particular premises, the principal purpose of the show enterprise is the retail sale of services (other than electricity) for the purposes of subparagraph 53(4)(a)(i) of the EGCSA.

Facts

An entity carries on an enterprise operating a show.

The entity uses diesel fuel at certain premises, namely the show site, to generate electricity.

The show is conducted as a special event to allow people to view various exhibitions, trade stalls and various types of entertainment.

The entity charges an entry fee for the show.

Reasons for Decision

Subsection 53(1) of the EGCSA states that a person is entitled to an off-road credit if they purchase diesel fuel for a use by them that qualifies.

Paragraph 53(4)(a) of the EGCSA provides that the following is a use that qualifies:

(a)

use at particular premises to generate electricity for use in the course of carrying on, at those premises, an enterprise that:

(i): has, as its principal purpose, the retail sale of goods or services (other than electricity) or the provision of hospitality; and
(ii): does not have, at those premises, ready access to a commercial supply of electricity.

Subparagraph 53(4)(a)(i) of the EGCSA makes it clear that, in order to qualify, the principal purpose of the enterprise carried on at the particular premises must be the retail sale of goods or services (other than electricity) or the provision of hospitality.

The Macquarie Dictionary, 2001, rev. 3rd edn, The Macquarie Library Pty Ltd, NSW defines 'service' as:

the supplying or supplier of any articles, commodities, activities, etc., required or demanded...

to meet the needs of (a group of people or organisation) by providing a particular service...

The entity is supplying an activity, namely the show's exhibition, trade displays, and entertainment. The entity is clearly providing a service at the show premises. As the entity charges an entry fee, it can be said that the entity sells the service.

As the show is conducted as a special event to allow people to view various exhibitions, trade stalls and various types of entertainment, it is clear that the primary purpose of the enterprise carried on at the show premises is the retail sale of services.

Accordingly, where an entity conducts an enterprise of running a show at particular premises, the principal purpose of the show enterprise is the retail sale of goods or services (other than electricity) for the purposes of subparagraph 53(4)(a)(i) of the EGCSA.

Date of decision: 4 November 2004

Legislative References:
Energy Grants (Credits) Scheme Act 2003
   subsection 53(1)
   paragraph 53(4)(a)
   subparagraph 53(4)(a)(i)

Related ATO Interpretative Decisions
ATO ID 2004/421
ATO ID 2004/422
ATO ID 2004/423

Other References:
The Macquarie Dictionary, 2001, rev. 3rd edn, The Macquarie Library Pty Ltd, NSW

Keywords
EGCS off-road diesel
EGCS use to generate electricity at a retail/hospitality enterprise

Business Line: Indirect Tax

Date of publication: 19 November 2004

ISSN: 1445-2782

history

	Date:	Version:
	4 November 2004	Original statement
You are here →	1 July 2012	Archived

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