The Air Lift Company, Inc. v. United States

ORDER.

Section 4061(b) (1) of the Internal Revenue Code of 1954 imposes an 8 per cent excise tax upon the price of automotive parts or accessories “sold by the manufacturer, producer, or importer.”

Taxpayer is a Michigan corporation engaged in the exclusive selling of accessories for use on motor vehicles as a booster device for suspension springs. Taxpayer holds a patent on the devices in question. They are fabricated by another company under contract with taxpayer and sold to taxpayer at the contract price. Taxpayer repackages the devices, adds instructions for installation and a warranty,…