GENERAL MOTORS CORP., FRIGIDAIRE DIV. v. United States

WHITAKER, Judge.

Plaintiff sues to recover excise taxes paid on the sale of electric refrigerators. It claims in its second cause of action it is entitled to a deduction from the sales price of amounts spent by it to discharge its obligation under the one-year warranty of certain parts of the refrigerators.

For some time prior to 1936 it had been the custom of the trade to warrant all parts of electric refrigerators for a period of one year. This custom continued until after the years here involved as to all parts except the hermetically sealed freezing units; but in 1936, pursuant to a special…