Marion Power Shovel Co. v. Department of Revenue

The question presented here is whether the purchase and use in Illinois of a certain machine built to special order is taxable under the Illinois Use Tax Act (Ill. Rev. Stat. 1965, ch. 120, par. 439.1 et seq.) or the Illinois Service Use Tax Act (Ill. Rev. Stat. 1965, ch. 120, par. 439.31 et seq.).

Plaintiff, Marion Power Shovel Company, contracted with Truax-Traer Coal Company to design, manufacture and sell a stripping shovel for use at the latter’s Sparta, Illinois, mine. Following delivery of the shovel, the Department of Revenue assessed a use tax, treating the transaction as a retail…