Rhodes Refrigeration, Inc., a Corporation v. United States

Rhodes Refrigeration, Inc. (Rhodes) paid for the period April 1, 1960 to March 31, 1964, $18,738.50 for excise taxes under section 4111 of the Internal Revenue Code of 1954, 68A Stal. 485. Rhodes sued in the district court under 28 U.S.C. § 1346 (a) (1) to recover its payment plus interest and the Government counterclaimed for $63,432.22 of unpaid federal excise taxes plus interest which it claimed were still owing under section 4Ill. The district court, sitting without a jury, dismissed Rhodes’ claim and found .for the Government on its counterclaim, entering judgment for $62,-213.80, plus interest, an amount stipulated by the parties. Rhodes appeals. This court has jurisdiction under 28 U.S.C. § 1291 .

Section 4111 of the Internal Revenue Code of 1954 imposed a manufacturers’ excise tax at a rate of five percent on, among other articles, “Household type units for the quick freezing or frozen storage of foods operated by electricity, gas, kerosene, or gasoline.” The definition of “household type units for quick freezing or frozen storage of foods” for the purposes of section 4111 is set out in 26 C.F.R. § 48.4111-2 (b):

The Commissioner of Internal Revenue determined that the…