7 4TH C ONGRESS . SESS. II. CH. 690 . JU NE 22, 1936 .
17 51 SEC . 907. EVIDENCE AND PRESUMPTIONS . (a) Wher e the refund clai med is for a n amou nt pa id or collec ted as processing tax, as defined herein, it shall be prima-facie evidence that the burden of such amount was borne by the claimant to the extent (not to exceed the amount of the tax) that the average margin per unit of the commodity processed was lower during the tax period than the average margin was during the period before and after the tax . If the average margin dur ing the tax period was not lower, it shall b e prima-facie evidence that no ne of the burden of such amount was borne by the claimant but that it was shifted to others . (b) The average margin for the tax period and the average margin for the period before and after the tax shall each be deter- mined as follows (1) TAX PERIOD.-The average margin for the tax period shall be the average of the margins fo r all months (or portions of month s) wit hin t he tax perio d . The margin for each such month shall be computed as follows : From the gross sales value of all articles processed by the claimant from the commodity during such month, deduct the cost of the co mmodity processed during the month and deduct the processing tax paid with respect thereto . The sum so ascertained shall be divided by the total number of units of th e comm odity proces sed du ring s uch mo nth, a nd the resulting figure shall be the margin for the month . (2) PERIOD BEFORE AND AFTER THE TA X .-The average margin for the period before and after the tax shall be the average of the margins for all months (or portions of months) within the period before and after the tax . The margin for each such month shall be computed as follows : From the gross sales value of all articles processed by the claima nt from the commodity during such month, deduct the cost of the commodity processed during the month . The sum so ascertained shall be divided by the num- ber of units of the commodity processed during such month, and the resulting figure shall be the margin for the month . (3) AVERAGE MARGIN .-The average margin for each period shal l be ascert ained in the same manne r as m onthl y marg ins un der subdivisions (1) and (2), u sing t otal gross sales valu e, tot al co st of commodity processed, total processing tax paid, and total units of commodity processed, during such period . (4) COMBINATION OF COMMODITIES .- Wh ere , as, for example, in the case of certain types of tobacco, the articles produced and sold by the claim ant are the product of several commodities com- bined by him during pro cessing, the average margins shall be esta blish ed wit h resp ect to such commo dities as a group , and not individually, in accordance with rules and regulations prescribed by the Commissioner, with the approval of tie Secretary of the Trea sury . (5) COST OF COMMODITY .-The cost of commodity processed during each month shall be (a) the actual cost of the commodity processed if the accounting procedure of the claimant is based thereon, or (b) t he product computed by multipl ying the quantity of the commodity processed by the current prices at the time aF processing for commodities of like quality and grade in the markets where the claimant customarily makes his purchases . (6) GRoss SALES VALL,E OF ARTICLES.-The gross sales value of articles shall mean (a) the total of the quantity of each article deri ved fr om the commo dity p rocess ed by the cl aimant durin g each month multiplied by (b) the claimant's sale prices current at the time of processing for articles of similar grade and quality. Evidence a nd pre- su mpti ons . Prima facie evidence as to extent cl aimant bore tax burden . Determination of av- erage margin . Tax period . Period before and after tax . Average margin ; as- certainment . Combi nation of co m - modities . Cost of commodity. Gross sales value of articles .
