Ruling 58-103

Internal Revenue Service
Revenue Ruling

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Rev. Rul. 58-103

1958-1 C.B. 394

Full Text

Rev. Rul. 58-103

A United States Armed Forces disciplinary barracks manufactures and sells to the general
public articles of the type which are subject to the manufacturers excise tax.
The proceeds from the sale of such articles may be used in furnishing equipment,
supplies, or services which contribute to the welfare and morale of the prisoners.
Held , since the statute contains no provisions for exempting from tax sales by the
United States or its instrumentalities, the disciplinary barracks is liable for the
manufacturers excise tax on all sales of taxable articles of its manufacture.