Raytheon Co. v. Commissioner of Revenue

This is a sales and use tax case. At issue is the meaning of the term “sale at retail” in the sales and use tax statutes, G. L. c. 64H and G. L. c. 64I, respectively. The Commissioner of Revenue (commissioner) refused to grant the taxpayer, Raytheon Company (Raytheon), an abatement of sales and use taxes relating to certain goods that constituted overhead or indirect cost items purchased by Raytheon in connection with its performance of work on different Federal contracts. Raytheon appealed to the Appellate Tax Board (board), contending that the sales of these indirect cost items to Raytheon…