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 Rev. Rul. 63-87

1963-1 C.B. 384

Full Text

Rev. Rul. 63-87

Section 5131 of the Internal Revenue Code of 1954 provides, in part, that any person using distilled spirits produced in a domestic registered distillery or industrial alcohol plant and withdrawn from bond, or using distilled spirits withdrawn from the bonded premises of a distilled spirits plant, on which the tax has been determined, in the manufacture or production of medicines, medicinal preparations, food products, flavors, or flavoring extracts, which are unfit for beverage purposes, on payment of a special tax per annum, shall be eligible for drawback at the time when such distilled spirits are used in the manufacture of such products. Held , the term `food products' as used in section 5131 of the Code and in sections 197.1 and 197.14 of the Nonbeverage Drawback Regulations, includes food adjuncts such as preservatives, emulsifying agents, and food colorings which are unfit for beverage purposes and are manufactured and used, or sold for use, in food.