Excise Tax Act — E-15 50
a purchaser thereof. Transitional (2.1) Notwithstanding subsection (1), where gasoline, diesel fuel or aviation fuel was, immediately prior to March 1, 1987, held in inventory by or on behalf of a person described in paragraph (e) of the definition manufacturer or producer in subsection 2(1), as that subsection read immediately prior to March 1, 1987, who was a licensed manufacturer under this Act of gasoline, diesel fuel or aviation fuel solely by virtue of that paragraph, and the consumption or sales tax thereon had not been paid or become payable on or before February 28, 1987, the gasoline, diesel fuel or aviation fuel shall be deemed to have been sold and delivered to a purchaser thereof immediately prior to March 1, 1987. (3) and (4) [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 16] Sales tax not payable on certain goods (5) Notwithstanding anything in subsection (1), the consumption or sales tax shall not be payable on goods (a) sold by a licensed manufacturer to another licensed manufacturer if the goods are partly manufactured goods; (b) imported by a licensed manufacturer if the goods are partly manufactured goods; (c) imported by a licensed wholesaler otherwise than for his own use or for rental to others, on importation; (d) sold by a licensed manufacturer to a licensed wholesaler otherwise than for his own use or for rental to others; (e) sold by a licensed wholesaler to a licensed manufacturer if the goods are partly manufactured goods; (f) sold by a licensed wholesaler to another licensed wholesaler, but if a licensed wholesaler sells goods to another licensed wholesaler at a price less than the value on which the tax would be computed under paragraph (1)(c), the vendor forthwith becomes liable to pay the tax on the difference between the value and his sale price; (g) sold to or imported by a person described in paragraph (d) of the definition manufacturer or producer in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are cosmetics; (h) [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 16] (i) being new motor vehicles designed for highway use, or chassis therefor, imported by a person described in paragraph (g) of the definition manufacturer or producer in subsection 2(1) who is a manufacturer licensed for the purposes of this Part; (j) being new motor vehicles designed for highway use, or chassis therefor, sold to a person described in paragraph (h) of the definition manufacturer or producer in subsection 2(1) who is a manufacturer licensed for the purposes of this Part; (k) sold to or imported by a person described in paragraph (i) of the definition manufacturer or producer in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are goods enumerated in Schedule III.1; or (l) sold or leased to, or imported by, a person described in paragraph (j) of the definition manufacturer or producer in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are prerecorded video cassettes that are new or have not been used in Canada. Where exemption not applicable (6) Where any person, other than the manufacturer or producer, importer, owner, licensed wholesaler or jobber mentioned in this section, acquires from or against any one of those persons the right to sell any goods, whether as a result of the operation of law or of any transaction not taxable under this section, the sale of the goods by him shall be taxable as if made by the manufacturer or producer, importer, owner, licensed wholesaler or jobber, as the case may be, and the person so selling is liable to pay the tax. Diversion of certain articles to non-exempt use, sale, etc. (7) Where a motor vehicle, tractor or aircraft or a ship or other marine vessel, or a machine or tool for operation by a motor vehicle or tractor or a part or equipment for an aircraft or ship or other marine vessel (a) has been purchased or imported by a person for a use by that person that renders the purchase or importation