Section 116 — Excise Tax Act: Incorrect statements as to use

Where a purchaser of goods from a wholesaler, producer, manufacturer or importer has incorrectly stated or certified that the goods were intended for a use rendering them exempt from tax under any provision of this Act, the wholesaler, producer, manufacturer or importer, as the case may be, is entitled to recover from the purchaser the taxes paid by him under this Act in respect of those goods. Where a purchaser of transportation by air from an air carrier has incorrectly stated or certified that the transportation by air was intended for a use rendering the transportation exempt from tax under Part II, the air carrier is entitled to recover from the purchaser the taxes paid by the air carrier under that Part in respect of that transportation by air. Where a person who acquires a taxable service from a licensee under Part II.1 or II.2 has incorrectly stated or certified that the service was intended for a use rendering the service exempt from tax under that Part, the licensee is entitled to recover from that person the taxes paid or remitted by the licensee under that Part in respect of the amount charged for the service. Where a manufacturer or wholesaler holding a licence granted under or in respect of Part III or VI has purchased goods from another such licensed manufacturer or licensed wholesaler and has incorrectly stated or certified that the goods were being purchased for a use or under conditions rendering the sale of the goods exempt from any tax imposed by Part III or VI, the purchaser and not the manufacturer or wholesaler from whom the goods were purchased is liable to pay the tax and any interest under subsection 79.03(1), if the statement or certificate is in writing, and the manufacturer or wholesaler from whom the goods were purchased establishes that he acted with due care and diligence in relying on the statement or certificate of the purchaser;

and in any other case, the purchaser and the manufacturer or wholesaler from whom the goods were purchased are jointly and severally liable to pay the tax and any interest under subsection 79.03(1).