Fisher Flouring Mills Company, a Corporation v. United States

Congress, in 1942, imposed an excise tax equal to three per cent of the amount so paid “upon the amount paid within the United States * * * for the transportation * * * of property by rail.” This tax was effective December 1, 1942, and remained in force under the quoted language until the statute was amended September 23, 1950, whereby, effective as to transportation originating on or after November 1, 1950, Congress imposed an excise tax “equal to 3 per centum of the amount so paid” “upon the amount paid within or without the United States for the transportation * * * by rail.”

Fisher Flouring Mills, a shipper who had paid as tax the three per centum of amounts paid in Canada for transportation of property by rail before November 1, 1950, brought suit for refund. The District Court denied recovery.

This judgment must be and is reversed.

The transportation of property by rail was all performed from one point in the United States to another point in the United States. No tax was levied upon transportation, but upon “amounts paid within the United States.” The language of the statute of 1942 is clear and concise. There is no ambiguity. When Fisher paid amounts in Canada for…