Republic Oil Refining Co. v. Granger
Decision Date | 21 June 1951 |
Docket Number | Civil Action No. 8669. |
Citation | 98 F. Supp. 921 |
Parties | REPUBLIC OIL REFINING CO. v. GRANGER, Collector of Internal Revenue. |
Court | U.S. District Court — Eastern District of Pennsylvania |
C. W. Campbell, and J. Vincent Burke, Jr., of Campbell, Houck & Thomas, Pittsburgh, Pa., and Edgar J. Goodrich, and Jerome J. Dick, Washington, D. C., for plaintiff.
Courtney C. Hamilton, Washington, D. C., and Edward C. Boyle, U. S. Atty., Pittsburgh, Pa., for defendant.
This is an action by the Republic Oil Refining Company, a Texas Corporation, against Stanley Granger, Collector of Internal Revenue for the Western District of Pennsylvania, to recover for excise taxes assessed and collected under the provisions of Section 3460 of the Internal Revenue Code of 1941, c. 412, 55 Stat. 687, Secs. 502 and 521 (a) (22), and by the Revenue Act of 1942, c. 619, 56 Stat. Sec. 616, 26 U.S.C.A. § 3460 (a) and (b).
The Internal Revenue Code, as it applies to the instant case, provides:
Exemption provisions were added to the Internal Revenue Code: 26 U.S.C.A. § 3460(c).
The old regulations issued in conjunction with Sec. 731 of the Internal Revenue Act were substantially modified and now appear as Treasury Regulations 42, Secs. 130.20 through 130.26, promulgated under the Internal Revenue Code:
* * * * * *
Although the parties do not agree upon the nature of the particular movements involved, and on which the tax is based, the basic facts are not in dispute.
Republic's claim is to recover $24,778.03 paid to the defendant as assessed excise taxes on the transportation of oil by pipe line for the period May 1, 1942, through January 31, 1946, in connection with movements of crude petroleum and liquid products thereof propelled by taxpayer's pumps to and from vessels at wharves or docks and taxpayer's refinery premises at Texas City, Texas.
During the taxable periods involved, prior thereto and since, Republic was and is a Texas Corporation, doing business in that state, particularly at Texas City, Texas, but with principal offices at Pittsburgh, Pennsylvania.
As a part of its business it owned and operated a refinery and two adjacent tank farms some distance from docks and wharves owned and operated by Texas City Terminal Railway Company.
The Taxpayer's business at Texas City including dealing in and processing crude petroleum and liquid products thereof. Such products moved by pipe line to and from vessels at the docks on Galveston Bay at Texas City, to and from pumps situated on taxpayer's two tank farms near its refinery proper. The tanks on the two tank farms were used for storage and also in the processing and refining of oil. All the movements here involved were propelled by taxpayer's pumps which moved the products from vessels into taxpayer's tank farm tanks and, in reverse movements, forced products from taxpayer's tank farm tanks into the vessels.
The taxpayer's pumps were four in number and were situated at points varying from approximately 2500 feet to 4000 feet from the docks. The taxpayer's pipe lines also transversed the two loading and receiving docks used, distances of 500 feet on one and 900 feet on the other. Though the pipe lines across the docks were operated by the taxpayer, nevertheless the Texas City Terminal Railway Company charged the taxpayer for loading and unloading there in accordance with and pursuant to its published tariff.
Other movements occurred within the boundaries of...
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