Page:United States Statutes at Large Volume 53 Part 1.djvu/426

 MANUFACTURERS' EXCISE AND IMPORT TAXES For the purposes of this chapter the manufacturer or producer to whom an article is sold under paragraph (1) or resold under para- graph (2) shall be considered the manufacturer or producer of such article. The provisions of paragraphs (1) and (2) shall not apply with respect to tires or inner tubes. SEC. 3443. CREDITS AND REFUNDS. (a) A credit against tax under this chapter, or a refund, may be allowed or made- (1) to a manufacturer or producer, in the amount of any tax under this chapter which has been paid with respect to the sale of any article (other than a tire or inner tube) purchased by him and used by him as material in the manufacture or production of, or as a component part of, an article with respect to which tax under this chapter has been paid, or which has been sold free of tax by virtue of section 3442, relating to tax-free sales. (2) to any person who has paid tax under this chapter with respect to an article, when the price on which the tax was based is readjusted by reason of return or repossession of the article or a covering or container, or by a bona fide discount, rebate, or allow- ance; in the amount of that part of the tax proportionate to the part of the price which is refunded or credited. (3) to a manufacturer, producer, or importer, in the amount of tax paid by him under this chapter with respect to the sale of any article to any vendee, if the manufacturer, producer, or importer has in his possession such evidence as the regulations may pre- scribe that- (A) such article was, by any person- (i) resold for the exclusive use of the United States, any State, Territory of the United States, or any political subdi- vision of the foregoing, or the District of Columbia; (ii) used or resold for use as fuel supplies, ship's stores, sea stores, or legitimate equipment on vessels of war of the United States or of any foreign nation, vessels employed in the fish- eries or in the whaling business, or actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions; (iii) in the case of products embraced in paragraph (2) of section 3412 (c) used or resold for use otlerwise than as fuel for the propulsion of motor vehicles, motor boats, or air- planes, and otherwise than in the production of such fuel: Provided, however, That no credit or refund shall be allowed or made under this paragraph in the case of sales or uses of products commonly or commercially known or sold as gasoline, including casinghead and natural gasoline; (iv) in the case of lubricating oils, used or resold for non- lubricating purposes. (B) The manufacturer, producer, or importer has repaid or agreed to repay the amount of such tax to the ultimate vendor or has obtained the consent of the ultimate vendor to the allow- ance of the credit or refund. (b) Credit or refund under subsection (a) shall be allowed or made only upon compliance with regulations prescribed by the Commissioner with the approval of the Secretary. (c) Interest shall be allowed at the rate of 6 per centum per annum with respect to any amount of tax under this chapter credited or refunded, except that no interest shall be allowed with respect to any amount of tax credited or refunded under the provisions of subsection (a) hereof. (d) No overpayment of tax under this chapter shall be credited or refunded (otherwise than under subsection (a)), in pursuance of a court decision or otherwise, unless the person who paid the tax 417

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