General Motors Corporation v. The United States

DURFEE, Judge.

This is a suit for the refund of a purported overpayment of a manufacturers’ excise tax in the sum, as conceded by defendant, of $131,708.78. The question presented is whether or not payments made by a manufacturer to its dealers in order to reimburse the dealers for extra compensation paid by the dealers to their salesmen in furtherance of the manufacturer’s plan to increase sales, constitutes an excise tax price readjustment under Section 3443(a) (2) of the Internal Revenue Code of 1939 (26 U.S.C. § 3443 (a) (2) (1952)), and section 6416(b) (1) of the Interna! Revenue Code of…