Wilson Chemical Co. v. United States

FREEDMAN, District Judge.

This is a suit for refund of excise taxes. The Government claims that the jewelry involved was “sold at retail” and therefore was subject to the excise tax imposed by § 2400 of the Internal Revenue Code of 1939 and § 4001 of the Internal Revenue Code of 1954.

The facts have been stipulated by the parties and each side has moved for summary judgment.

Plaintiff manufactures a salve. It recruits children to sell the product by advertisements m children’s publications. Plaintiff retained no control over the manner in which the children sold the salve and disclaimed any…