(Download) "Dixie Margarine Co. v. Shaefer." by United States Court Of Appeals For The Sixth Circuit # eBook PDF Kindle ePub Free
eBook details
- Title: Dixie Margarine Co. v. Shaefer.
- Author : United States Court Of Appeals For The Sixth Circuit
- Release Date : January 01, 1943
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 60 KB
Description
On September 16, 1942, the plaintiff, The Dixie Margarine Company, filed its complaint in equity against defendant Shaefer, alleging that he was a Deputy Collector of Internal Revenue from January 1, 1923, to December 1, 1925, and that as such he was an agent and representative and under the orders and instructions of the Commissioner of Internal Revenue. The plaintiff alleged: that it was a manufacturer and seller of a food product called oleomargarine; that its president made inquiry of defendant and was told that it would be necessary to secure a permit and a license and to place a stamp upon all its products; that stamps would be required in the amount of 10 cents per pound upon all products containing artificial coloring and 1/4 of a cert upon every pound containing no coloring; that a failure to comply would subject plaintiff to criminal prosecution and the seizure of its property; that defendant gave to plaintiffs president a copy of Regulations No. 9 of the Bureau of Internal Revenue and instructed him that plaintiffs business must be governed in accordance therewith; that agents of the defendant inspected plaintiffs factory regularly and required compliance with Regulations No. 9; that to avoid the threatened penalties, plaintiff, under duress and compulsion, paid to the Bureau from March 9, 1923, to July 1931, the sum of $329,231.64, of which $87,412.00 was paid between March 1923, and December 1925; that on November 30, 1929, it filed a refund claim for $241,819.64 and for such other amounts as were legally refundable; that on December 26, 1929, the Commissioner illegally and fraudulently rejected this claim; that on September 14, 1931, it filed a second claim for refund of amounts paid from November 1, 1929, to July 1931, in the sum of $56,772.03 which the Commissioner illegally and fraudulently rejected on December 14, 1931; that on December 17 following, plaintiff filed in a District Court a suit against one Lee Brock, Collector, for the recovery of the aforesaid sum of $241,819.64; that throughout the proceedings described in its complaint, plaintiff was cooperating with other companies engaged in a similar business and in furtherance thereof a suit was brought styled Standard Nut Margarine Company of Florida v. Miller; that on April 22, 1931, the Circuit Court of Appeals, 5 Cir., 49 F.2d 79, sustaining the District Court, held that products similar to those manufactured by plaintiff were not taxable, that the Commissioner knew that they were not and that his action in holding them taxable was an arbitrary attempt to coerce the illegal payment of money and that the plaintiff in that case was entitled to protection in equity; that the Court of Appeals sustained an injunction restraining any attempt to tax such products; that on February 15, 1932, the Supreme Court affirmed the Circuit Court of Appeals, 284 U.S. 498, 52 S. Ct. 260, 76 L. Ed. 422, and that on April 27th following the Commissioner reopened plaintiffs refund claim and refunded the aforesaid amounts of $241,819.64 and $56,772.03 respectively; that on April 16, 1935, plaintiffs attorneys, by letter, requested the Commissioner to refund the aforesaid amount of $87,412.00 paid to defendant during the years 1923, 1924 and to December 1, 1925; that on May 22, 1935, the Commissioner refused to make the refund; that thereafter plaintiff filed suit in the Court of Claims for the recovery of said amount and that cout sustained a demurrer on the ground that no claim for refund had been filed within four years from the date of payment and the suit was therefore barred by the statute of limitations. 12 F. Supp. 543.