In the case of Indian Motocycle Co. v. United States in 1930, the Supreme Court ruled on a dispute regarding tax refunds claimed by the Indian Motorcycle Company (IMC). The company had paid manufacturer's excise taxes under protest during World War I and later sought to recover these payments after Congress repealed the law imposing them. The government argued that IMC was not entitled to a refund because it passed on the cost of taxes to its customers, thus suffering no injury itself. However, IMC contended that they were still legally entitled to seek reimbursement for unjust taxation regardless of whether they absorbed or shifted this financial burden onto consumers. The court sided with IMC, holding that passing along an unlawful tax does not preclude manufacturers from seeking redress from their government; even if consumers ultimately bore this expense indirectly through higher prices, manufacturers like IMC could still claim damages directly linked to such illegal exactions imposed upon them by authorities. This decision clarified taxpayers' rights when challenging improper levies and underscored how businesses may be eligible for restitution even if they manage mitigating impacts via pricing strategies.

In the dissenting opinion for Indian Motocycle Co. v. United States, it was argued that the majority's decision to hold a corporation liable for taxes on stock dividends constituted an overreach of federal power and misinterpretation of tax law. The dissenting justices contended that such dividends should not be considered income under existing legislation, as they merely represented a redistribution of corporate assets among shareholders rather than new profit or gain. They further suggested that treating them as taxable income would result in double taxation since corporations already pay taxes on their profits before distributing any remaining funds to shareholders through dividends. This interpretation, according to the dissenters, contradicted both legislative intent and previous court rulings regarding similar matters.