Blackmon v. Nichols

BELL, Circuit Judge:

This appeal arises out of a bankruptcy proceeding. The petition of the Commissioner of Revenue of the State of Georgia to reclaim funds collected by the trustee herein as sales tax was denied by the bankruptcy court. The district court, 361 F.Supp. 468, affirmed. We reverse.

The sales tax in question was derived from an auction sale in liquidation of the bankrupt’s tangible personal property. The agent of the Commissioner of Revenue was present and insisted on sales tax being collected on each item as sold. The trustee permitted the agent to collect the tax on the condition…