Commonwealth v. Pure Oil Co.

Opinion by

Me. Justice Simpson,

The fundamental question involved in this case is whether the City of Philadelphia is required to pay the tax per gallon provided by the Act of May 1,1929, P. L. 1037, on all gasoline purchased and consumed by it in the performance of its governmental functions as an agent of the Commonwealth.

Defendant sold to the city a large quantity of gasoline during March, 1930. The city refused to pay the four cents per gallon specified in the statute. The State settled an account against defendant on the theory that it should have collected the tax from the city. In due…