Automatic Canteen Co. of America v. State Board of Equalization

This action was brought by Automatic Canteen Company of America, as successor to Nationwide Food Service, Inc. (hereinafter referred to as Nationwide), seeking the refund of $60,479.35 paid by Nationwide as sales taxes for the period of December 21, 1952 through March 14, 1959, these sales taxes having been paid on the gross receipts of Nationwide’s in-plant feeding operations at Shell Chemical Corporation, Shell Oil Company, Carnation Company, Standard Oil Company of California, Norris-Thermador Corpora tion, and Dohrmann Hotel Supply Company. Judgment in the sum of $39,586.09 was awarded Nationwide and it is from this judgment that defendant State Board of Equalization appeals.

The Issues

Section 6051 of the Revenue and Taxation Code imposes an excise tax upon retailers for the privilege of conducting a retail business, measured by gross receipts from retail sales. Section 6006, subdivision (d), in defining the term “ ‘Sale,’ ” includes “The furnishing, preparing, or serving for a consideration of food, meals, or drinks, ’ ’ and section 6007 defines a “ ‘Retail sale’ ” as “a sale for any purpose other than resale in the regular course of business. ...” The initial issue raised…