Commerce-Pacific, Inc. v. United States

In this case the plaintiff seeks to recover certain excise taxes and poses the question whether the articles sold are “fishing rods” within the meaning of § 4161, I.R.C.1954, which virtually reenacted § 3406(a) (1), I.R.C.1939 [26 U.S.C.A.]. The real question in dispute is whether the articles are rods or poles.

Plaintiff distributes articles made of bamboo which are intended to be used for fishing purposes. These articles come in from two to four sections that can be fitted together. Each section has string wrapped around the bamboo near the end, presumably for support purposes. At the end of the smallest section a metal loop is attached, where fishing line is to be tied or run through. The bamboo is treated with lacquer.

Under the general heading of “Sporting Goods” § 4161, I.R.C.1954, imposes a 10% excise tax on the sale by the manufacturer, producer or importer of “fishing rods, creels, reels and artificial lures, baits and flies”. I.R.C. Regulations (1954) § 316.91 refer to these items as “fishing tackle”. Internal Revenue Bulletin 1958-34 (Revenue Ruling 58-425) ruled that the excise tax was not due on “sales of bamboo cane poles which are in their natural state or merely…