Page:United States Statutes at Large Volume 68A.djvu/839

 CH. 65—ABATEMENTS, CREDITS AND REFUNDS

799

(1) That he has not included the tax in the price of the article or service with respect to which it was imposed or has not collected the amount of the tax from the vendee; or (2) Has repaid the amount of the tax to the purchaser (in case of retailers' taxes) or to the ultimate purchaser (in the case of manufacturers' taxes and the tax under section 4041(a)(1) or (b)(1)) of the article or service or, in any case within subsection (b)(2), has repaid or has agreed to repay the amount of the tax to the ultimate vendor of the article; or (3) Has filed with the Secretary or his delegate the written consent of such purchaser, ultimate purchaser, or ultimate vendor, as the case may be, to the allowance of the credit or refund or has obtained the written consent of such ultimate vendor thereto. (b) SPECIAL CASES IN W H I C H T A X PAYMENTS CONSIDERED OVER-

PAYMENTS.—Under regulations prescribed by the Secretary or his delegate credit or refund, without interest, shall be made of the overpayments determined under the following paragraphs: (1) P R I C E READJUSTMENTS.—If the price of any article in respect

of which a tax, based on such price, is imposed by chapter 31 or 32, is readjusted by reason of the return or repossession of the article or a covering or container, or by a bona fide discount, rebate or allowance, the part of the tax proportionate to the part of the price repaid or credited to the purchaser shall be deemed to be an overpayment. (2) SPECIFIED USES AND RESALES.—The tax paid under subchapter E of chapter 31 or chapter 32 in respect of any article shall be deemed to be an overpayment if such article was, by any person— (A) Resold for the exclusive use of any State, Territory of the United States, or any political subdivision of the foregoing, or the District of Columbia, or, in the case of musical instruments embraced in section 4151, resold for the use of any religious or nonprofit educational institution for exclusively religious or educational purposes; (B) Used or resold for use for any of the purposes, but subject to the conditions, provided in section 4222; (C) I n the case of a liquid taxable under section 4041, sold for use as fuel in a diesel-powered highway vehicle or as fuel for the propulsion of a motor vehicle, motorboat, or airplane, if the vendee used such liquid otherwise than as fuel in such a vehicle, motorboat, or airplane or resold such liquid; (D) I n the case of lubricating oils, used or resold for nonlubricating purposes; (E) I n the case of unexposed motion picture films, used or resold for use in the making of newsreel motion picture films; (F) I n the case of articles taxable under section 4061(b) (other than spark plugs, storage batteries, leaf springs, coils, timers, and tire chains), used or resold for use as repair or replacement parts or accessories for farm equipment (other than equipment taxable under section 4061(a)); (G) I n the case of a communication, detection, or navigation receiver of the type used in commercial, military, or marine installations, resold to the United States for its exclusive use; § 6416(b)(2)(G)

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