Lewis

This is an appeal from a judgment of the district court that appellant, Mount Tivy Winery, Inc., recover nothing on its suit against John V. Lewis, Collector of Internal Revenue, to recover $15,419.33 as a refund on floor taxes assessed and paid under § 10(c) of the Liquor Taxing Act of 1934, 48 Stat. 315 . 1 This section provides for a tax “(c) Upon all wines held by the producer thereof upon the day this title takes effect and intended for sale or for use in the manufacture or production of any article intended for sale, there shall be levied, assessed, collected, and paid a floor tax equal to the amount, if any, by which the tax provided for under section 8 of this title exceeds the tax paid upon the grape brandy or wine spirits used in the fortification of such wine.”

Appellant taxpayer contends that the district court erred in holding (A) that the wines taxed were “held” by it and were “intended for sale,” within the meaning of § 10(c) ; (B) that the tax on a holding of wines intended for sale is an excise tax and not an unapportioned direct tax in violation of Article I, Section 2, Clause 3, and Article I, Section 9, Clause 4 of the Constitution; and (C) that placing the…