A. C. Ross, as District Director of Internal Revenue for the Collection District of Georgia v. E. F. Hayes and I. C. Peterson, D/B/A the Covered Wagon

GRIFFIN B. BELL, Circuit Judge:

Taxpayers instituted this action for refund of cabaret taxes allegedly overpaid for the third quarters of 1953 and 1957. The United States counterclaimed for cabaret taxes allegedly due for 1954-56 and the first two quarters of 1957. 1 Section 4232 of the Internal Revenue Code of 1954 exempts from the cabaret tax imposed by § 4231 “any ballroom, dance hall, or other similar place where the serving or selling of food, refreshment, or merchandise is merely incidental * * 26 U.S.C.A. §§ 4231, 4232. The government stipulated that taxpayers’ establishment was a…