Chillies treated as spices for tax-free purchase under the dealer's registration certificate

Chillies were treated as falling within the expression "spices" in the purchasing dealer's registration certificate because the ordinary meaning of spices includes vegetable substances of strong flavour or aroma used as condiments, and chillies are dried capsicums or red pepper commonly used in that way. On that basis, the sale to the registered purchasing dealer qualified for tax-free treatment under the certificate, and sales tax exemption was available.

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Issues: Whether chillies fall within the expression "spices" in the purchasing dealer's registration certificate so as to permit tax-free sale to that dealer.

Analysis: The purchasing dealer's certificate authorised tax-free purchase only of the articles specified therein. The dispute therefore turned on whether chillies could be treated as "spices". On the ordinary meaning of the expressions, chillies are dried capsicums/red pepper commonly used as condiments, while spices are vegetable substances of strong flavour or aroma used as condiments. On that basis, chillies were held to fall within the ambit of spices.

Conclusion: Chillies were covered by the expression "spices" in the registration certificate, and the sale to the purchasing dealer was entitled to exemption from sales tax.

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