Carbon Steel Co. v. Lewellyn

Citations

• 251 U.S. 501
• 40 S. Ct. 283
• 64 L. Ed. 375
• 1920 U.S. LEXIS 1632

Syllabus

<p>The rule of strict construction will not be pressed so far as ,to reduce a taxing statute to a practical nullity by permitting easy evasion. P. 505.</p> <p>The Munitions Manufacturer’s Tax payable under the Act of September 8,1916, e. 463, § 301, 39 Stat. 780, by persons “manufacturing” shells, etc., and computed as an excise of 12J^ per cent, upon the net profits from the sale or disposition of such articles “manufacture^ ” within the United States, applies to the profits derived from sales of shells under contract to the British Government by one who per- ' formed the manufacture in its early stages only and had the subsequent operations performed by subcontractors, furnishing them the steel so partly manufactured, with some of the other materials^ retaining ownership of materials when furnished, and control of the operations, and owning the shells when completed. P. 503.</p> <p>This liability is not affected by the fact that the subcontractors paid a similar tax on their profits. P. 506.</p> <p>258 Fed. Rep. 533, affirmed.</p>