Ruan Financial Corporation, Ruan Transport Corporation v. United States

JOHN R. GIBSON, Circuit Judge.

The question before us is whether Ruan Financial Corporation and Ruan Transport Corporation engaged in rebuilding and thus “manufacture” of highway tractors and was thereby subject to manufacturing excise taxes under 26 U.S.C. § 4051 (1988) and 26 U.S.C. § 4061(a)(1) (1982) (repealed 1984). The district court 1 held that Ruan’s reconditioning activities fell short of “rebuilding”, and were not taxable under the statute. Ruan Financial Corp. v. United States, 765 F.Supp. 985 (S.D.Iowa 1990). The United States appeals. We affirm.

Ruan was in the business of leasing…