Ohio Ferro-Alloys Corp. v. Kosydar

The issue in this case is whether certain equipment purchased and used by appellant in the production of ferro-alloys is excepted from the Ohio sales and use taxes.

R. C. 5739.01(E) (2) provides, in part:

“(E) ‘Retail sale’ and ‘sales at retail’ include all sales except those in which the purpose of the consumer is:

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“(2) To incorporate the thing transferred as a material or a part, into tangible personal property to be produced for sale by manufacturing, assembling, processing, or relining, or to use or consume the thing transferred directly in the production of tangible personal…