Rev. Rul. 57-572

Revenue Ruling 56-189, C.B. 1956-1, 503, holds that the manufacturers excise tax on automobile parts and accessories imposed by section 4061(b) of the Internal Revenue Code of 1954 applies to a rebuilder's sale of a rebuilt clutch assembly. Held , if a reassembled clutch assembly contains pressure plates reground or resurfaced by the reassembler, the clutch assembly is considered to be `rebuilt' and its sale by the rebuilder is subject to the tax. However, no tax applies to the sale of a complete clutch assembly, where the reassembler purchases on a tax-paid basis the pressure plates or other parts, either new or rebuilt, used in the reassembly. Revenue Ruling 56-189 is amplified accordingly.