Joseph McKenna

“ The distinction between a tax and a penalty was emphasized. The function of a tax, it was said, "is to provide for the support of the government"; the function of a penalty clearly involves the 'idea of punishment for infringement of the law,' and that a condition of its imposition is notice and hearing. ”

“ All taxes and assessments against the spirits and liquors that were levied or could be levied were paid by the complainant in advance, and during the time the permit was in force complainant sold and disposed of the spirits and liquors under the permit, 'and under and in accordance with the provisions of the National Prohibition Act.' Complainant also complied with the law in regard to filing a bond in the sum of $100,000. ”

“ That in or about the month of June, 1920, the Commissioner of Internal Revenue levied against complainant a so-called assessment or tax at the rate of $6.40 per gallon, amounting in the aggregate to $115,092.50 upon all distilled liquors that had been withdrawn by complainant from the bonded warehouses between October 28, 1919, and the time when complainant's permit to sell and dispose of the spirits was revoked, to wit, in the month of June, 1920. ”