Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 62-62

1962-1 C.B. 208

Caution: Obsoleted by Rev. Rul. 69-227

IRS Headnote

Cabinets and so-called `stands' designed to enclose complete television receiving sets come within the scope of the term `radio and television components' as defined by section 4142 of the Internal Revenue Code of 1954. Therefore, sales of these articles by the manufacturer, producer, or importer thereof are subject to the manufacturers excise tax imposed by section 4141 of the Code.

Full Text

Rev. Rul. 62-62

Advice has been requested whether certain cabinets and so-called `stands,' which are designed to enclose television receiving sets, are considered to be television components within the meaning of section 4142 of the Internal Revenue Code of 1954.

A manufacturer of television receiving sets also manufactures decorative cabinets of various styles, sizes, colors, and finishes, which are designed to match the decor or period style of the furniture in a particular room. They are built with doors, and they have no shelves. Although they also may be used as book cases, liquor cabinets, etc., they are designed, advertised, and sold as enclosures for table model television receiving sets. When such a cabinet is used to enclose a television receiving set, the set itself remains enclosed in its original cabinet and is a complete unit which operates independently of the decorative cabinet.

The company also manufactures a `stand' which is designed as a partial enclosure for a table model television receiving set. This article has four legs and is equipped with a bottom panel, a top panel, and two side panels, but it has no front or rear panel. When a television receiving set is placed in the stand, the set is enclosed except for the front and rear sections.

A television receiving set may be readily removed from the decorative cabinet or from the stand and used  elsewhere.

Section 4141 of the Code imposes a tax upon the sale by the manufacturer, producer, or importer of certain articles, among which are `television receiving sets' and `radio and television components.'

Section 4142 of the Code defines the term `radio and television components' to mean chassis, cabinets, tubes, speakers, amplifiers, power supply units, antennae of the `built-in' type, phonograph mechanisms, and phonograph record-players, which are suitable for use on or in connection with, or as component parts of, any of the articles enumerated in section 4141, whether or not primarily adapted for such use.

Section 48.4142-1(a) of the Manufacturers and Retailers Excise Tax Regulations provides that, in general, the term `radio and television components' means, among other things, cabinets which are suitable for use on or in connection with, or as a component part of, any radio or television receiving set, phonograph, or combination of any of the foregoing. Section 48.4142-1(c)(2) of the regulations provides that the term `cabinets' includes containers suitable for housing a chassis for any radio or television receiving set, phonograph, or combination of any of the foregoing.

The Internal Revenue Service considers that the term `cabinet' for a television receiving set, as meant by section 4142 of the Code and section 48.4142-1 of the regulations, includes an enclosure which covers the sides and top of a table model television set as well as furnishing a support for such set.

Since the so-called `stand,' which has bottom, top and side panels, and the decorative cabinets enclose television receiving sets, they are cabinets and are suitable for use on or in connection with television receiving sets. Therefore, it is held that they come within the scope of the term `radio and television components' as defined by section 4142 of the Code. Accordingly, the sale of such a cabinet or `stand' by the manufacturer, producer, or importer thereof is subject to the manufacturers excise tax imposed by section 4141 of the Code.

On the other hand, a table which merely supports a table model television receiving set without covering the sides and top of the set is not considered to be a cabinet within the meaning of the law and regulations. The sale of such a table is not subject to the manufacturers excise tax.