In a unanimous ruling of Mr. Justice Marc Noël, Madam Justice Alice Desjardins and Mr. Justice Robert Décary, the Federal Court of Appeal decided on October 17, 2001, in the test case of Commission scolaire Des Chênes v. Her Majesty the Queen, that the subsidies paid by the Ministry of Transport (Quebec) to the school boards for the transportation of school children was a consideration for a supply within the meaning of the Excise Tax Act. The school boards were entitled to recover the entire amount of the goods and services taxes (GST) paid to the private carriers rather than only receiving a partial refund (68 per cent) originally allowed by the Canada Customs and Revenue Agency (CCRA). Yves St-Cyr (tax) of Lavery, de Billy represented the commission. Pierre Séguin represented the Crown.
