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TAXATION RULING NO. ST 2242

ST 2242

SALES TAX: FREEZE BRANDING AND DEHORNING EQUIPMENT

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FOI status:

May be releasedFOI number: I 1078184

FACTS

Freeze branding and dehorning equipment consists of an aerosol can of freezing gas together with an applicator, branding and dehorning stencils and batteries. The applicator attaches to the aerosol can and is a battery powered device which regulates the amount of freezing solution delivered to the animal. The branding stencil determines the pattern of the brand whilst the dehorning stencil is placed over the undeveloped horns and ensures that the gas is restricted to the required area. Each process involves the selective destruction of skin cells, particularly the hair follicles, by the use of intense cold to provide either a permanent brand mark or to retard further development of the horn cells.

2. The apparatus is sold in a blister pack and labelled "For animal treatment only. Freeze branding and dehorning system".

3. Replacement parts, including aerosol cans and stencils are also available. The batteries are not parts for the system but rather are the power source for operating the equipment.

RULING

4. The freeze branding and dehorning equipment when sold as a complete packaged unit qualifies for conditional exemption under sub-item 13(1) when sold for use in the agricultural industry.

5. Replacement parts including stencils and aerosol cans, also qualify for conditional exemption under sub-item 13(1) when sold for use in the agricultural industry. Replacement batteries are not considered to be parts for the system. They are taxable at the rate applicable to the particular batteries used.

COMMISSIONER OF TAXATION
16 May 1986

References

ATO references:
NO 85/8727-2

Date of effect:
IMMEDIATE

Subject References:
MACHINERY IMPLEMENTS AND APPARATUS FOR USE IN THE AGRICULTURAL INDUSTRY
BRANDING AND DEHORNING EQUIPMENT

Legislative References:
SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT; ITEM 13, FIRST SCHEDULE.


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