United States v. Moroloy Bearing Service of Oakland Ltd.

This is a companion case to United States v. J. Leslie Morris Co., 124 F.2d 371 , today decided.

Appellee taxpayer is engaged in the same character of enterprise as the J. Leslie Morris company, and its plant, located at *374 Oakland, is affiliated with those of that company. It is incorporated under the laws of California. Monthly, from February, 1933, to August, 1936, in compliance with the demand of the Collector of Internal Revenue, it filed manufacturer’s excise tax returns and made tax payments (totaling $1,099.80) under § 606(c) of the Revenue Act of 1932, 26 U.S.C.A. Int.Rev.Code, § 3403(c), in respect of sales of automobile connecting rods during that period. 1 It thereafter made claim for refund and on rejection of its claim brought suit, recovering a judgment from which the government appeals.

In the present case, as in United States v. J. Leslie Morris Co., supra, the taxpayer argues that it is a repairer, rather than a manufacturer or producer. Here, however, the taxpayer in support of the claim that its activities are not within the reach of the statute, makes a further contention, namely, that it did not make sales of the processed parts or accessories. We will…