Joseph E. Seagram & Sons, Inc. v. Smith

EVANS, Circuit Judge.

■ Plaintiff makes the following contentions: The tax on its distilled spirits does not attach until they are withdrawn. The loss of the spirits in question did not constitute such a withdrawal or removal as to warrant the assessment of a tax. In other words, losses occurring during operation and production in the distillery are to be distinguished from losses in warehouse after the spirits have been withdrawn from the’ cisterns, and entered the storage rooms or warehouse. A loss of spirits occurring during production in a distillery due to negligence does not justify or…