Boteler

This is an appeal from the order of the District Court, affirming the action of the Referee in Bankruptcy in enjoining the State Board of Equalization of the State of California from attempting to compel the Trustee in Bankruptcy to take out a sales tax permit or to collect a three percent retail sales tax from purchasers of assets of the bankrupt estate upon sales made by the Trustee in liquidation of the bankrupt estate.

There is no issue of fact in the present case.

A wholesale and retail bakery corporation was adjudicated a bankrupt, a Trustee in Bankruptcy was appointed, and he immediately began to liquidate the corporate properties, which consisted of the furniture, fixtures, equipment, and other miscellaneous items of the business. The Trustee offered this property for sale at public sale in the Referee’s court, but no satisfactory bid was received, and he, therefore, applied for, and was granted, authority by the court to sell the same at private sale by the piece or in bulk.

The California State Board of Equalization thereupon demanded that the Trustee take out a retail sales tax permit, and that he collect and remit the sales tax prescribed by the California Retail…