Duradene Co. v. Magruder

CHESNUT, District Judge.

Whether “permanent waving fluid” used in the hairdressing art is subject to the federal excise tax on certain toilet articles (section 603 of the Revenue Act of 1932 [26 U.S.C.A. § 1420 et seq. note]) is the question presented in this case. The plaintiff, a manufacturer, was required to pay the tax in the amount of $738.69, for sales made in the period August 26, 1935, to July 31, 1936. After its timely petition for refund was denied, this suit was brought to recover the tax so paid. It is said to be a test case affecting about $100,000 of annual tax assessments. '

The…