Rev. Rul. 55-346

Advice has been requested whether the requirement of section 235.129 of the Regulations relating to the Rectification of Spirits and Wines, that check valves be installed in the outlet pipe lines of bottling tanks applies in the case of bottling tanks used exclusively for the bottling of unrectified products.

Section 235.685 of the regulations provides that proprietors of rectifying plants desiring to bottle taxpaid distilled spirits or wines without rectification will give notice on Form 230, Description and Gauge of Spirits or Wines for Bottling Without Rectification. Section 235.901 thereof requires Government locks upon the manheads, inlets, and outlets of bottling tanks except where the bottling is pursuant to Form 230.

In view of the provision of section 235.901 of the regulations, it is held that the requirement of section 235.129 for the installation of check valves in the outlet pipelines of bottling tanks does not apply to bottling tanks used exclusively for the bottling of spirits pursuant to Form 230. Accordingly, the Internal Revenue Service will not require the installation of check valves in the outlet pipelines of bottling tanks which are used only for the bottling of unrectified products pursuant to Form 230. However, if such bottling tanks are to be used at any time for the bottling of rectified products pursuant to Form 237, Report of Rectified Spirits and Wines, check valves must first be installed in the outlet pipelines.

Revenue Ruling 55-56, page 569, this Bulletin, is accordingly modified to eliminate the requirement for check valves on outlet pipelines in the case of bottling tanks used exclusively for the bottling of unrectified products pursuant to Form 230