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prescription is inherently a service business under the integral-
to-service test. I assume that the lenses and frames are
integral to that service. If so, under the integral-to-service
test, the lenses and frames are not merchandise within the
meaning of section 1.471-1, Income Tax Regs.
The integral-to-service test is different; it changes the
emphasis of the inquiry that, traditionally, has served; it
brings into play new factors, which will encourage the
reexamination of settled questions. For instance, consider the
hotel and restaurant business. The courts have consistently held
that the sale of large amounts of food, beverages, and tobacco is
a sufficient basis upon which to predicate the use of
inventories. See, e.g., Dwyer v. Commissioner, a Memorandum
Opinion of this Court dated June 29, 1951 (inventories necessary
for hotel and restaurant business since purchase and sale of
wines, liquors, and beers is an income-producing factor), affd.
on other issues 203 F.2d 522 (2d Cir. 1953); Schuyler v.
Commissioner, a Memorandum Opinion of this Court dated May 11,
1951 (similar; purchase and sale of food, beer, wine, liquor, and
tobacco products), affd. on other issues 196 F.2d 85 (2d Cir.
1952). Do we now give license to challenge that orthodoxy?
Restaurants do not sell tobacco products anymore, and liquor may
give them pause, but can fancy French restaurants (or large food
service operations) now argue that they need not inventory their
comestibles since they are inherently a service business, with
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