F. W. Fitch Co. v. United States, 323 U.S. 582 (1945)

F. W. Fitch Co. v. United States

No. 181

Argued December 13, 1944
Decided January 15, 1945
323 U.S. 582

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE EIGHTH CIRCUIT

Syllabus

1. Under § 603 of the Revenue Act of 1932, which imposed on toilet preparations sold by manufacturers or producers an excise tax of a stated percentage of the selling price, held that advertising and selling expenses were not excludable from the selling price in computing the tax. P. 584.

2. In computing the selling price for purposes of the tax levied by § 603 of the Revenue Act of 1932, § 619(a) provides on certain conditions for the exclusion of "A transportation, delivery, insurance, installation, or other charge . . ." Held that the term "other charge" does not embrace advertising and selling expenses. P. 584.

3. By the rule of ejusdem generis, applicable here since it does not conflict with the general purpose of the statute, the term "other charge" in § 619(a) is limited to expenses similar in character to those incurred for transportation, delivery, insurance, and installation -- all of which are incurred subsequent to the preparation of an article for shipment and are not included in the manufacturer’s f.o.b. selling price. P. 585.

4. The construction here given the Act accords with the consistent administrative construction, and is required by accepted rules of statutory construction. P. 586.

5. It is not for the courts to afford relief from such inequalities and discriminations as inevitably result where a flat tax is measured by wholesale selling prices. P. 586.

6. Section 619(b) of the Revenue Act of 1932 is inapplicable where sales were made at wholesale, and does not require a different result from that here reached. P. 587.

141 F.2d 380 affirmed.

Certiorari, post, p. 690, to review the reversal of a judgment for the taxpayer, 52 F.Supp. 292, in a suit for a tax refund.