State v. KERSHAW MANUFACTURING COMPANY.

SIMPSON, Justice.

This is an appeal by the State from a final decree of the Circuit Court of Montgomery County, in Equity, vacating and setting aside a deficiency sales tax assessment made by the State Department of Revenue against The Kershaw Manufacturing Company, a corporation, the appellee here.

During the period of time covered by the assessment, June 1, 1953 through May 31, 1956, Kershaw'was in the business of manufacturing various types of railroad maintenance equipment. Seventy-five percent of the equipment manufactured during this period was initially sold to some railroad. Twenty-five…