McCaughn v. Hershey Chocolate Co.

Section S10 of the Revenue Act of 1918, 40 Stat. 1057, 1122, impos d, at varying percentages, an excise tax upon the sales price of enumerated articles, most of which may be characterized as luxuries. The enumeration of the ninth subdivision was, “ Candy, 5 per centum.” Section 900 (6) of the Revenue Act of 1921, 42 Stat. 227, 292, reenacted this provision but reduced the tax to 3%. Respondents, manufacturers of “ sweet chocolate ” and “ sweet milk chocolate,” brought suits in the District Court for Eastern Pennsylvania, to recover about $8,000,-000 of taxes assessed under these sections for…