United States v. Walker-Hill Co.

LA BUY, District Judge.

This suit was filed by the United States on April 14, 1948 to recover payment made on or about September 24, 1943 of drawback of tax pursuant to Section 3250(Z) (5) of Title 26, U.S.C.A.Int.Rev.Code.

Defendant manufactures eggnog in the production of which distilled spirits are used. The pertinent sub-paragraphs of Section 3250 giving rise to the issue here presented are as follows:

“(Z) Manufacturers or producers of designated nonbeverage products.

“(1) In general. Any person using distilled spirits produced in a domestic registered distillery or industrial alcohol plant…