Morrow Radio Manufacturing Co., a Corporation v. United States

The Morrow Radio Manufacturing Company is an Oregon corporation engaged in the manufacture of radio equipment. During the period from October 1, 1955, through September 30, 1958, it manufactured and sold receivers, fixed-tuned receivers, power supply units, converters, and speakers. Each article is in a separate cabinet and is sold primarily as amateur radio equipment.

Section 4141 of the Internal Revenue Code of 1954, 26 U.S.C.A. § 4141 , imposes a tax upon certain radio equipment. Morrow’s contention is that it does not impose any tax on the equipment which it manufactures. The statute reads as follows:

“There is hereby imposed upon the sale by the manufacturer, producer, or importer of the following articles (including in each case parts or accessories therefor sold on or in connection with the sale thereof), a tax equivalent to 10 percent of the price for which so sold:

Section 4142 supplements Section 4141 by providing a definition of radio and television components:

Morrow brought suit in the United States District Court for the District of Oregon in an effort to recover $1,658.03 in excise taxes allegedly erroneously paid to the government. The United States denied that…