Legal Document

371 U.S. 537 83 Supreme Court Reporter 378 9 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 492 R. Atlantic RIDDELL, District Director of Internal Revenuev.MONOLITH PORTLAND CEMENT CO. Number 528. Decided Jan. 14, 1963. Rehearing Denied Feb. 25, See 372 932, 871. PER CURIAM. 1 The taxpayer respondent during the taxable year 1952 mined limestone from its own quarry, crushed it, transported product two miles to plant, and there, through addition other materials further processing, manufactured into cement which it sold. It paid taxes for mentioned, based on a depletion allowance computed in accordance with Treasury Regulations. Thereafter filed claim refund now prosecutes this suit ground that should not have been upon constructive income at stage, but rather gross receipts sales mining after 'treatment processes' were completed became finished cement.1 found taxpayer's base was sale cement, Appeals affirmed. 301 Federal Reporter, 2nd 488. 2 Section 23(m) Revenue Code 1939, 53 Statutes-at-Large 26 Annotated KF65 U5 § 23(m), provided computing net certain percentage deductions be allowed mines. Congress provided, 114(b)(4) Code, as amended, chapter 63, 124(c) (B), 58 45 (1944), included within term 'mining' 'the ordinary treatment processes normally applied by mine owners or operators order obtain commercially marketable mineral * *.' 3 In versus Cannelton Sewer Pipe Co., 364 76, 80 1581, 4 1581 (1960), we considered some length application industry held statutory an integrated operator cut off point where first suitable industrial use consumption. After careful study record here believe case is controlled Cannelton. We concluded there 'that intended grant miners raw product, if form, value articles.' U.S., 86, S.Ct., 1586. cut-off 'gross mining' stopped has same' ever since statute, namely, 'where miner shipped his mine.' Id., 87, 1587. therefore appears 'product' deals when terminated, i.e., reached stage.2 This results limiting basis limestone, than cement. petition certiorari granted, judgment reversed, remanded disposition opinion. so ordered. 5 Reversed remanded. 6 Mr. Justice WHITE took no part consideration decision case. There question involved under Act September 1960, 74 1017, elected pursue accept correct prekiln feed stage manufacture permitted Act. connection only 'marketable form' but, according Reprint Bureau Mines Minerals Yearbook, 1952, Stone, Page 26, exhibit record, actually sold California amount exceeding 1,500,000 tons. Sales exceeded 216,000,000 Both these figures exclude tonnage used A stipulation shows all purposes totaled almost 300,000,000 tons 1952.

Classification Label: 11