The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1864-08-10
INTERNAL REVENUE DECISIONS.
Spirits, Coal on, and Tobacco.

The following Is decision IN regard TO the
liability Of distilled spirits, coal oil, aud tobacco
In po'session Of the manufacturer ON the first day
oflJuly, 1864, TO taxation under the act Of June
80, 1864 -
TREASURY DEpARTNENT, OrFICE Op INTERNAL
REyENUF, Washington, July 30, iS5i-FrOm
various letters received Mt this office, II seems
that great diversity Of opinion exists among the
officers OF Tut rnal Revenues and other parties
interested, in regard to the construction given to
the 55th section Of the act Of June 30, IN the cir
cuar Of Jnly 6.
BY the 55ih section, all spirits which may have
been in the possession of the dstiller or in pub
lie store or bonded warehouse, on the LIST day
Of July. no duty having been paid thereon, shall
he held and ueated as if distilled on that day
by the 173d section, il is also provided that "all
manufactures and productions on which a duty
was imposed by eiher of the acts repealed which
shall be In the possession OF the manufacturer or
producer, or Of his agents or agents on the day
when this act takes effect, shall be held and
deemed TO have been manufactured or produced
after such date"
These provisions are to be construed together,
as the last includes the first, and both cover the
same ground. They plainly apply to all distilled
spirits which were, the lst OF July, in the pos
session of the dlstller or manufacturer or In any
public store or bonded warehouse, and spirits
shipped under the old law in bills Of hding. n
no tax had been paid prior TO July /, no question
of sale or removal could intervene, IL the spirits
on that day were In the possession OF the dstller
OF IN PUBIC store OF OOnQeQ Warehouse but no
must pay the increased rate. Coal Oiliand Tobacco
wheu bonded, are, by both the old and now law
subject 20 the same regulations and liabilities as
distilled spirits.
The old law provided that spirits and oil should
become subject to tax when sold, consumed OF
removed for consumption or sale, and. tobacco,
when sold, or removed for consumption, or for
delivery to others than agents of the manufacturer
or producer, but not when bonded for oxport.
When either of the conditions stated occurred,
the law imposed the duty, the manufacturer be-
came bound to pay, ana officers of internal reve-
nue. to enforce the collection; if such duty was
paid prior 10 July l there no liability TO the
increased rate, the payment having been made as
required by law.
But until the condition occurred on which the
manufacturer became chargeable, he was under
no liability tO the Government for tax on his
product, aud the Collector had no authority to
collect. OF course, any receipt he might give for
tax would be in anticipation of an Obligation not
yet deyolved, and would not operate as 3 dis
charge OF duty TO accrue afterwards
When, therefore, under the provisions of the
law and the regulations of this office, auy manu-
facture had become liable to the duty, and the
manufacturer, being bound to pay, had, prior to
July l. actually paid the duty according to the
former law, no liability accrues for the increased
duty imposed by the recent law.
But if, under the same law and regulations, the
article had not become HaOlo 10 duty, no pay
ment by the manufacturer TO the Collector could
be made on account of duty, or operate as a legal
discharge Of a liability thereafter to accrue. OF
course Il could not avail TO defeat any increased
liability created by the change in the law.
Under the circular of the Secretary Of the
Treasury OF March 80, 1864, in relation to bonded
warehouses; Collectors were required to enforce
the pay ment Of the duties on spirits which were
not removed TO bonded warehouse, or shipped
under bill Of lading; and when, in accordance
with that circular, Collectors did not enforce the
pay ment OF tic duty, ana such duty was paid prior
TO July l, such spirits must be held to be exempt
from the increased rate.
Where spirits, on the Both of June, we're in
bonded warehouse, and on that day the manutac-
turer paid TO the Collector an amount equal TO
the duties on the same at the then rate of tax,
but such spirits renamed ia such warehouse on
the let Of july, without any change of posses
sion, there was no payment of the duty within
the meaning Of the law, and they still remain
subject to the increased rate prescribed by the
new law.
II the spirits or other manufactured articles
were in the possession of the distiller or manu-
taCturer, or his agent or agents, on the LIST of
July, and no tax had previously been paid, the
law is clear and explicit that such spirits other
articles must be hed and treated as # distilled or
manufactured on that day, and subject TO the in
creased rate Of tax. The nOn-pay ment Of the tax
Is conclusive, and no inqUiry need be made
tuIther