Custom Hardware Engineering & Consulting, Inc. v. Director of Revenue

RICHARD B. TEITELMAN, Chief Justice.

Custom Hardware Engineering, Inc. (CHE) appeals an Administrative Hearing Commission (AHC) decision determining that CHE is liable for use tax plus interest and additions to tax on its purchases of parts for use in fulfilling maintenance contracts. CHE asserts that it is not liable for any use tax because it did not use the parts and, instead, retained them for “temporary storage” as provided in section 144.605(13), RSMo 2000.1 The record demonstrates that CHE used the parts for testing and certification on behalf of its customers. Therefore, CHE is liable…