In the case of Sun Ship Building Company v. United States, the Supreme Court ruled in favor of the U.S government. The dispute arose when Sun Ship Building Company claimed that they were entitled to a refund for excess profits taxes paid during World War I under an amendment to the Revenue Act of 1918. This act allowed companies involved in war production to claim refunds if their contracts had been made before September 1, 1917 and contained no provision for increased costs due to changes in tax law. However, this was not applicable as per Justice Sutherland's opinion because Sun Ship’s contract with Emergency Fleet Corporation (a U.S government corporation) was signed after this date and included provisions allowing renegotiation based on increased costs from any source including taxation.

The dissenting opinion in the case of Sun Ship Building Company v. United States argued that the majority's decision to uphold a tax on shipbuilders was incorrect. The dissenters believed that this tax violated Article I, Section 9, Clause 5 of the U.S. Constitution which prohibits Congress from taxing exports. They contended that ships built for foreign buyers and delivered abroad were essentially "exports" and thus should be exempted from taxation under this clause. Furthermore, they disagreed with the majority's interpretation of what constitutes an export; while the majority defined it as goods transported overseas for sale or use there, dissenters argued it also includes goods produced domestically but intended for foreign markets regardless if they are physically shipped out or not.