Tax Free Withdrawal for Hospital or Clinic

Section 3108(c) of the Internal Revenue Code provides in part that alcohol may be withdrawn from an industrial alcohol plant or bonded warehouse, free of tax, for the use of any hospital or sanitarium, or for the use of any clinic operated for charity and not for profit.

It is held that an establishment whose functions are limited to rendering first aid and emergency care to plant employees is not a "hospital" or a "clinic operated for charity and not for profit" within the meaning of section 3108(c) of the Code.

26 U.S.C. 3108 (Internal Revenue Code of 1939); 26 CFR 182.661 (27 CFR 213.104, 213.105)