240 F. 671 | 2d Cir. | 1917
(after stating the facts as above).
Under this rule as to the construction of revenue or taxation laws the court below was right in holding that, even if it were possible chemically to extract from coca leaveá the component parts of novo-caine, the latter substance could not be called a derivative of coca leaves; it is a derivative of coal tar.
It seems equally clear that as a revenue act, the language of the exception in section 6, i. e. “liniments, ointments, or other preparations,” must be held to mean other preparations ejusdem generis; and there was no offer to prove (and it is admittedly not a fact) that novocaine is of the nature of an ointment or liniment, no matter what simpler chemical elements are discoverable in its composition.
It follows that unless the defendant below was prepared to show that novocaine was a derivative of coca leaves in the ordinary practical commercial sense of that word, the Farbwerke was not liable to the tax levied by the'first section of the statute, nor within the exception of the sixth section.
However foreign to the real congressional purpose the foregoing reasoning and conclusion may be, we are compelled to this holding by controlling authority.
Judgment affirmed.