Rev. Rul. 58-444

Under the provisions of section 4061(b) and section 4062 of the Internal Revenue Code of 1954, a tax is imposed upon the sales of automobile storage batteries by the manufacturer, producer, or importer thereof. Held, where an automobile storage battery is restored to useful condition by the replacement of one or more cells in such battery with one or more cells from another battery, or where a battery is produced by the replacement of worn plates or by a complete assembly of useful parts, such as containers, separators, and plates salvaged from junk batteries, such operations constitute manufacturing (rebuilding). Therefore, a person who restores batteries in such a manner for sale is regarded as a manufacturer within the meaning of the Code and is liable for the manufacturers excise tax on his sales of the batteries, regardless of the identity of the original batteries from which any of these parts were salvaged and regardless of whether any new parts are incorporated therein. Held further , the mere replacement of separators or casings in a battery does not constitute manufacturing, and the sale of batteries so reconditioned, assembled, and recharged is not subject to the tax.