holding that drugs and pharmaceuticals used during the treatment of patients were not merchandise, under § 1.471-1 because their use was part of an overall service
How later courts described this case
- holding that drugs and pharmaceuticals used during the treatment of patients were not merchandise, under § 1.471-1 because their use was part of an overall service
- taxpayer that had 2 weeks' supply of chemotherapy drugs on hand not required to use inventory method of accounting
- wherein drugs used as part of chemotherapy treatments were not considered merchandise because their use was an indispensable and inseparable part of the rendering of services
Written by the judges who cited it.
The opinion
PARR, J., concurring: I agree with the majority’s opinion, and write separately merely to emphasize that each case that comes before this Court presents a unique set of facts and is decided on its own merits. Although we now find that the facts of this case are “markedly different” from the facts of some of the cases we have decided involving construction contractors, I believe that the principles enunciated here also apply to construction cases. This is true, for example, when a building material is indispensable and inseparable from the service provided by the construction contractor. See, e.g., Galedrige Constr., Inc. v. Commissioner, T.C. Memo. 1997-240 .
Beghe, J., agrees with this concurring opinion.