Morton Pharmaceuticals, Inc. v. MacFarland

delivered' the opinion of the Court.

This suit was originally filed by the appellee to recover use taxes paid under protest. The Chancellor determined-the matter in favor of the taxpayer and against the Commissioner, who has seasonably appealed to this Court.

The appellee is a drug manufacturer and wholesaler in Memphis, Tennessee, and in conducting this business it purchases from various suppliers large quantities of non-drug items which it distributes among its physician, clinic and hospital customers in conjunction with its sales of pharmaceuticals, and these customers of the appellee have…