ATO ID 2011/48: Excise and the number of premises specified in a licence to manufacture
Date of decision: 3 June 2011
Business line: Indirect Tax

Issue
Can a licence to manufacture excisable goods issued under the Excise Act 1901 (Excise Act) specify multiple premises?

Decision
Yes, a licence to manufacture excisable goods issued under the Excise Act can specify multiple premises.

Facts
An entity applies for a licence to manufacture excisable goods at three premises. The entity will undertake a process of manufacturing of particular excisable goods at these different locations.

Reasons for decision
Summary: By the operation of section 25 of the Excise Act, a person is required to hold a licence to manufacture excisable goods. Section 27 of the Excise Act stipulates that the excisable goods may only be manufactured at the premises specified in the licence. Sections 39 and 39A of the Excise Act deal with the application for, and the granting of a licence respectively. Section 39 of the Excise Act provides that an application may be made for a licence, and in particular paragraph 39(2)(d) states in part that the application must 'contain a description of the premises in relation to which the licence is sought'. The term 'premises' is not defined in the Excise Act and therefore takes its ordinary meaning. The Australian Oxford Dictionary , 2004, rev. 2nd edn, Oxford University Press, Melbourne defines 'premises', when used in plural, as 2 (in pl .) a a house or building with its grounds and appurtenances, b Law houses, lands, or tenements previously specified in a document etc. Hence, when adopting the ordinary meaning of 'premises' in the context of a licence issued under the Excise Act, the word means the buildings and lands that are specified in the licence. This does not clarify whether a manufacturer licence may specify premises that are at more than one separately identifiable location. Subsection 39A(1) of the Excise Act gives the discretion to the Commissioner to grant, or refuse to grant the licence. Without limiting the operation of subsection 39A(1), subsection 39A(2) of the Excise Act includes matters on which the Commissioner may refuse to grant a licence. Relevantly, subsection 39A(2) includes the following: ... (g) in relation to an application for a manufacturer licence...the physical security of the premises in relation to which the licence is sought is not adequate having regard to: (i) the nature of the premises; or (ii) the kinds and quantity of goods that would be kept at the premises; or (iii) the procedures and methods that would be adopted by the applicant to ensure the security of goods at the premises The Excise Act does not state that only one location may be cited when a premises is specified in a manufacturer licence. It merely states the premises must be specified, and that the Commissioner, in exercising the discretion to grant a manufacture licence, may give consideration to the premises and matters directly related to the premises. The Acts Interpretation Act 1901 provides, at section 23, the rules as to gender and number in the interpretation of statute and states: In any Act, unless the contrary intention appears: ... (b) words in the singular number include the plural and words in the plural number include the singular. As the Excise Act does not explicitly state that only premises at a single location may be specified in a manufacturer licence, it is considered that premises at more than one location may be specified in a manufacturer licence.

Legislative references: Excise Act 1901 section 25 section 27 section 39 section 39A subsection 39A(1) subsection 39A(2) paragraph 39(2)(d)
Other references: The Australian Oxford Dictionary, 2004, rev. 2nd edn, Oxford University Press, Melbourne
Subject references: Excise Statutory licences Licensed premises