Creme Manufacturing Co., Inc., Plaintiff-Appellee-Cross v. United States of America, Defendant-Appellant-Cross

I respectfully dissent from the Court’s holding that taxpayer’s excise tax should be calculated upon a constructive price set by the Internal Revenue Service. Section 4216 of the IRC does not authorize this, even where the transaction is not at arm’s length, unless the “. article is . sold ... at less than the fair market price.” The court below found as a fact that “. . . the price charged by Creme Manufacturing was a fair market price charged in a similar fashion as that charged by others in the ordinary course of trade.”1

Record evidence, some of which is mentioned in the majority opinion,…