Southern Natural Gas Co. v. State

GOODWYN, Justice.

The principal questions for decision are whether the appellant Gas Company is liable for use tax on three categories of property, viz.: gas compressors, electric generators, and regulators. The company’s position is that these are machines or machinery used in “processing” tangible personal property and, as such, are exempt from the use tax by virtue of Sect. 789(p), Tit. 51, Code 1940, as amended. This section provides for exemption from use tax of the following:

“Machines used in mining, quarrying, compounding, processing, and manufacturing of tangible personal property;…