The appellant, a small distillery, challenged the LCBO's 139.7% mark-up on spirits sold at its on-site retail store, arguing it was an unconstitutional tax under sections 53 and 90 of the Constitution Act, 1867.
The application judge dismissed the challenge, finding the mark-up was a proprietary charge and not a tax, and that the appellant had voluntarily agreed to it by contract.
The Court of Appeal upheld the decision, confirming that the LCBO, as the owner of the spirits under the contract, was exercising its private law rights to determine prices in a commercial context.
