Opinion ID: 392697
Heading Depth: 1
Heading Rank: 4

Heading: The Excise Tax Overcharges

Text: 23 The district court found with respect to Count III of Vanco's first amended complaint that Falls City had wrongfully overcharged Vanco for Indiana excise taxes from 1961 to 1976 by paying the correct tax to Indiana and then billing Vanco for a greater amount. 15 For example, a typical 1973 invoice shows a 21cents overcharge on 672 cases of beer (Supp.App. A-51). Similar small overcharges over the 15 years in question were found to total $17,251.77. Vanco discovered the overcharges in the summer of 1976 when it contemplated filing the Section 2(a) claim. Falls City ended the overcharges in October 1976, after Vanco's president brought the problem to Falls City's attention. 24 Falls City asserts that its practice had been simply to round out to the next highest tenth-cent the tax amount due to Indiana, and that this practice did not result in overcharges to Vanco because the total amount charged, consisting of the unit price and the tax, was always equal to the announced f.o.b. price. In short, Falls City's argument is that any concealed overcharges in the tax component of the total price was offset by equivalent concealed undercharges in the unit price component so that Vanco paid the same total amount it would have had to pay had the breakdown between tax and unit price been calculated correctly on the invoices. However, the district court found, and the evidence supports its finding, that the controlling figures in each transaction were those listed on the invoice, not on the price announcement. The invoices show that the excise tax was treated as a distinct item from the unit price and that Vanco was consistently charged a higher amount for excise tax than was due or paid to Indiana. 25 The district court also found that the relevant statute of limitations was tolled because Falls City's conduct was a continuing wrong and was concealed by Falls City from Vanco, which relied on Falls City to calculate the tax and prices correctly. In so finding, the district court was entitled to assess the credibility of the witnesses, and it was persuaded that Falls City's conduct had misled Vanco sufficiently so that under Indiana law it should not be permitted to repudiate the conduct. 16 26 Again, we find no clear error in the district court's factual findings, and on the basis of those findings, Vanco was entitled under Indiana law for money had and received to have restored to it the difference between the amount Falls City paid Indiana and the higher amount it charged Vanco. American Fletcher National Bank and Trust Co. v. Flick, 146 Ind.App. 122, 130, 252 N.E.2d 839 (1970); Ashton v. Shepherd, 120 Ind. 69, 22 N.E. 98, 111 (1889). 27 For the foregoing reasons, the judgment is affirmed except as to damages under Count II. 17 The cause is remanded for the proper assessment of damages under that Count. Costs on appeal are to be borne by both parties. 28