Internal Revenue Service
Revenue Ruling

TaxLinks.com   sm

 Rev. Rul. 67-91

1967-1 C.B. 300

Full Text

Rev. Rul. 67-91

A manufacturer contracts on a job order basis to produce rubber bushings for a manufacturer of motor vehicles taxable under section 4061(a)(1) of the Internal Revenue Code of 1954. The contract provides that the vendee will furnish the specifications and dies for the bushings and that the vendor's sale of the completed bushings is limited to the motor vehicle manufacturer.

Rubber bushings of this type are produced and sold generally by other manufacturers for use wherever an insulating effect upon sound, vibration, abrasion, or electrical current is desired, for example, in farm machinery, children's toys, and household appliances.

Held , these bushings are not subject 4061(b) of the Code on parts and accessories for the articles enumerated in section 4061(a)(1) of the Code. Each bushing is of a type which is considered to be an article of general use as described in section 48.4061(b)-2(b) of the Manufacturers and Retailers Excise Tax Regulations. It is not an article designed primarily for use in connection with a taxable motor vehicle merely because it is known at the time of sale that the bushing will be so used.