The Minister for Trade and Customs:

Mr A., the owner of a sugar factory, at Yeppon Plantation near Rockhampton in Queensland, refuses to take out a licence under the Excise Act for the year 1902 on the ground that no sugar cane will be manufactured this year owing to the crop being ruined by drought.

The Customs Department contend that as 21 tons 12 cwt of raw sugar were made from jelly sugar from last season's boiling in the months of January, June and July of the present year the factory must be licensed.

There are several other sugar factories in a similar position.

The Minister for Trade and Customs forwards the papers to me with the following minute: T shall be glad to be advised. Is the licence fee recoverable and if so how? What steps are recommended to be taken?'

The Excise Act forbids the manufacture of excisable articles except under licence, but by section 15 it provides that in the event of any excise being thereafter imposed in relation to any manufacture previously free there shall be allowed two months from the commencement of the Act imposing the excise for compliance with the provisions of the Excise Act relating to registration and licence.

The Excise Tariff 1902 which was assented to on 26 July 1902 imposed an excise duty on sugar as from 8 October 1901. Previously to that date sugar was free from excise duty.

An Act commences on the day it receives the Royal assent unless the contrary intention appears in the Act. See Acts Interpretation Act 1901, sections 3 and 5.

The Excise Tariff dates the imposition of duties back to the time when the Tariff proposals were laid before Parliament but does not say it is to be deemed to have commenced on that date and the last two sections do not date back. Therefore it did not commence as a whole until the date on which it was assented to.

My opinion is:

1. That sugar may lawfully be made without a licence until the period of two months from the commencement of the Excise Tariff (allowed by section 15 of the Excise Act) has expired.
2. That no licence fee is payable unless a licence is actually taken out.

[Vol. 2, p. 283]