Pacific Car and Foundry Company v. United States

The plaintiff, Pacific Car and Foundry Company, hereinafter designated as “taxpayer”, brought this suit in the District Court to recover certain excise taxes which the United States had collected from it for the quarterly period January 1 through March 31, 1961. The District Court gave the taxpayer a judgment for the amount claimed by it, $3,813.47, plus interest. The United States has appealed from that judgment. The Jurisdiction of the District Court and that of this court are not questioned. The tax in question is the eight per cent excise tax imposed by section 4061(b) of the Internal Revenue Code of 1954, 26 U.S. C., 1964 ed., section 4061.

The K-W Dart Truck Company, a corporation, was a subsidiary of the taxpayer until some time prior to 1961, at which time the K-W Dart Company was dissolved, and since that dissolution its business has been carried on as a division of the taxpayer. As such a division, it will be designated hereinafter as K-W Dart. The taxpayer, at the time here involved manufactured, in Washington and California, trucks and automotive vehicles for highway use. Its division, K-W Dart, at the time here involved manufactured only off-highway vehicles. Its…