Hercules Inc. v. Utah State Tax Commission

OPINION

BILLINGS, Judge:

{11 Hereules Incorporated (Hercules) appeals a final decision by the Utah State Tax Commission (Commission) imposing a sales tax on Hercules for nitrogen gas it purchased and used in manufacturing graphite fiber. We reverse.

~ BACKGROUND

1 2 Hercules purchased nitrogen gas which it used in manufacturing graphite fiber.1 The nitrogen gas is not used as a fuel in the manufacturing process and is not an ingredient in the product, but rather provides an atmosphere that prevents the carbon, the basic ingredient of the graphite fibers, from being consumed during the…