Goggin

On February 5, 1946, West Coast Cabinet Works, Inc., a corporation engaged in manufacturing and selling cabinets at retail in California, filed a petition under Chapter 11 of the Bankruptcy Act 1 and George T. Goggin was appointed receiver. From February 5, 1946, until March 11, 1946, Goggin, as receiver, conducted the business of the corporation under authority of the court, made retail sales, and paid the California sales tax thereon. 2 On March 12, 1946, the corporation 'Was adjudicated a bankrupt and Goggin was appointed trustee. Pie continued to conduct the business of the bankrupt until March 22, 1946, and paid the California sales tax on retail sales made.

On March 22, 1946, the trustee was directed by order of the court to sell the assets of the estate. In carrying out the order, the trustee made numerous sales of the personal property of the bankrupt and paid the California sales tax thereon. On March 29, 1946, the trustee sold at retail, by public auction, five trucks which had been used by the bankrupt for delivery purposes in the conduct of the business. The California sales tax was not added to the *728 purchase price and the sales were not reported in the bankrupt’s…

(concurring).

The power of 'Congress to pass uniform laws in relation to bankruptcies is paramount. International Shoe Co. v. Pinkus, 278 U.S. 261, 263 , 49 S.Ct. 108 , 73 L.Ed. 318 ; U. S. Constitution, Art. I, § 8, cl. 4. The statutes so enacted emphasize the necessity of liquidation in order to make distribution of assets. Congress has given the Bankruptcy Court plenary powers to that end. 11 U.S.C.A. §§ 11 , 66; Continental Illinois, National Bank & Trust Co. v. Chicago, R. I. & P. R. Co., 294 U.S. 648, 675 , et seq., 55 SCt. 595, 79 L.Ed. 1110 . Acting under these powers, the referee ordered a liquidating sale of certain trucks. A tax on this transaction, whatever form it takes, is a tax on the process o'f the Court liquidating assets in accordance with constitutional power.- In another aspect, it may be considered as a license fee required of a federal officer to make liquidation. In either event, it is void. A tax may be levied upon specific property in the hands of a trustee in bankruptcy. Swarts v. Hammer, 194 U.S. 441 , 24 S.Ct. 695 , 48 L.Ed. 1060 . But no state is empowered to levy taxes upon the process of the courts of the United States or to impede the officers of…

191 F.2d 726 CALIFORNIA STATE BOARD OF EQUALIZATION v. GOGGIN. No. 12727. United States Court of Appeals Ninth Circuit. August 21, 1951. Rehearing Denied October 26, 1951. Edmund G. Brown, Atty. Gen., State of Cal., James E. Sabine, Deputy Atty. Gen., Edward Sumner, Deputy Atty. Gen., for appellant. Leslie S. Bowden, Los Angeles, Cal., for appellee. Frank C. Weller, Hubert F. Laugharn, Thomas S. Tobin, all of Los Angeles, Cal., as amicus curiae. Before STEPHENS and POPE, Circuit Judges, and FEE, District Judge. STEPHENS, Circuit Judge. 1 On February 5, 1946, West Coast Cabinet Works, Inc., a corporation engaged in manufacturing and selling cabinets at retail in California, filed a petition under Chapter 11 of the Bankruptcy Act 1 and George T. Goggin was appointed receiver. From February 5, 1946, until March 11, 1946, Goggin, as receiver, conducted the business of the corporation under authority of the court, made retail sales, and paid the California sales tax thereon. 2 On March 12, 1946, the corporation was adjudicated a bankrupt and Goggin was appointed trustee. He continued to conduct the business of the bankrupt until March 22, 1946, and paid the California sales tax on…