UNITED STATES SUPREME COURT DECISIONS ON-LINE

The Internal Revenue Codes of 1939, § 3405 (c), and 1954, § 4111, placed a 10% excise tax on sales of "self-contained air conditioning units" and gave the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, power to prescribe needful rules and regulations for the enforcement of the provisions relating to such taxes. The Commissioner published revenue rulings in 1948 and 1954 holding that the statute taxed air conditioning units which had certain physical features, were designed for installation in a window or other opening, and had "a total motor horsepower of less than 1 horsepower."

Held:

1. These rulings were valid. Pp. 363 U. S. 711-712.

2. The case is remanded to the Court of Appeals for consideration of the question what is meant by "horsepower" and any other questions which may remain. P. 363 U. S. 712.

3. This disposition of the case is without prejudice to such action as the lower courts may deem appropriate to prevent taxpayers, should they ultimately prevail, from obtaining a windfall by reason of taxes collected by them but not paid to the Government. P. 363 U. S. 712.

266 F.2d 58, 267 F.2d 802, reversed. clubjuris

Page 363 U. S. 710