The court invalidated IRC Sections 5601(a)(6) and 5178(a)(1)(B), finding they go beyond Congress’s taxation powers. The court’s reasoning was that these provisions amount to an “anti revenue provision” that prevents distilled spirits from coming into existence, since under 26 U.S.C. § 5001(b) taxation begins as soon as the spirit exists, so banning production eliminates the taxable event entirely.

Here are the official docs for the case

McNutt v. US Department of Justice

https://storage.courtlistener.com/recap/gov.uscourts.ca5.220...