Rev. Rul. 57-16

Advice has been requested whether claims may be filed for the refund of tax paid on cigars withdrawn from the market by the manufacturer in partially filled packages, where the tax thereon had been paid under the return system. Advice has also been requested with respect to the method of showing the date of taxpayment.

Section 270.164 of the Regulations relating to Cigars and Cigarettes (Manufacturers, Importers, and Dealers) provides, in part, that the tax paid by return on cigars which are withdrawn from the market by the manufacturer, or are lost (otherwise than by theft) or destroyed by fire, casualty, or act of God, while in the possession or ownership of the manufacturer, may be refunded. Similar provision is made in section 270.197 of the regulations with respect to the refund of tax paid on imported cigars under the return system.

It is held that the above provisions are applicable to cigars withdrawn by the manufacturer or importer from the market in partially filled packages as well as in full packages.

Sections 270.164 and 270.197 of the regulations also provide that the manufacturer or importer must prepare a schedule, in letter form, of the cigars covered by the claim for refund, where such tax had been paid under the return system. Such schedule, prepared by the manufacturer, should show (1) the class of the product, (2) the factory from which the product was removed (permit number), (3) the number of full packages and the number of partially filled packages, indicated separately, (4) the separate quantity of cigars of each class in full and partially filled packages, (5) the date of taxpayment, (6) the rate of tax, and (7) the amount of tax for each item.

It will not be necessary to show the dates of taxpayment on the face of Form 843, Claim, where the various dates of taxpayment appear on the schedule, under the heading `Date of Taxpayment.' Schedules by importers will be prepared in the same manner except that item (2), above, will be omitted.

The following schedule is published as a guide to illustrate the information which a manufacturer should furnish:

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