In the matter of “Fermenter”, “Distiller” and Industry Research and Development (IR&D) Board, the Administrative Appeals Tribunal (AAT) assessed the decision of the IR&D Board regarding the applicants entitlement to a favourable certificate under s. 39L of the Industry Research and Development (IR&D) Act 1986.
The first applicant, “Fermenter” was concerned in a project for the development of the manufacture of ethanol from wheat starch waste by fermentation. The second applicant, “Distiller”, was involved in a similar development using distillation.
The applicants applied for a favourable certificate under s. 39L of the IR&D Act 1986.
The IR&D Board found that some activities were eligible as R&D, while others were deemed to be more of a quality control and commercial nature, not involving innovation or technical risk.
There was an issue with when the activities occurred, the Board finding that they had not been completed in the financial years 1991-1994 and did not form part of the assessment.
Fermenter and Distiller took the matter to the AAT claiming to be entitled to a favourable certificate for the whole of the period originally requested.
The decision of the IR&D Board was set aside.
The AAT remitted the matter back to the respondent with the direction that the applicants are entitled to a favourable certificate in respect of all the activities outlined except for one.