Luben Industries, Inc. v. United States

In the District Court, Luben Industries, Inc. (Luben) sought to recover a refund of allegedly unlawfully assessed and collected Federal excise taxes. The Government in turn counterclaimed for allegedly lawfully assessed but unpaid excise taxes. The parties filed cross-motions for summary judgments. The District Court denied Luben’s motion, granted the Government’s motion, and entered its final judgment on July 30, 1981. Luben appeals. We note jurisdiction under 28 U.S.C. § 1291 and affirm.

Luben manufactured and sold accessories (roll bars, push bars and brush guards) for light-duty (V2 to % ton) pickup trucks. Luben considered the manufacture and sale of these accessories as not being subject to the manufacturer’s excise tax imposed by I.R.C. § 4061 (1976). On audit, the Internal Revenue Service (IRS) determined that Luben’s sales were subject to the tax. The IRS assessed deficiencies for the period of the fourth quarter of 1975 through the second quarter of 1977. Luben paid the taxes for the fourth quarter of 1975 (approximately $1,000), but did not pay the taxes for the other quarters (approximately $70,000). This action to obtain a refund of the taxes paid and the…