[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR48.4218-3]

[Page 165-166]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 48_MANUFACTURERS AND RETAILERS EXCISE TAXES--Table of Contents
 
     Subpart M_Special Provisions Applicable to Manufacturers Taxes
 
Sec. 48.4218-3  Events subsequent to taxable use of article.

    Liability for tax incurred on the use of an article is not 
extinguished or reduced because of any subsequent sale or lease of the 
article even if such sale or lease would have been exempt if the article 
had been so sold or leased prior to use. If a manufacturer, producer, or 
importer of an article incurs liability for tax on his use thereof, and 
thereafter sells or leases the article in a transaction which otherwise 
would be

[[Page 166]]

subject to tax, liability for tax is not incurred on such sale or lease.

[T.D. 6687, 28 FR 11781, Nov. 5, 1963]