State v. Alabama Metallurgical Corp.

HOLMES, Judge.

The State of Alabama appeals from the trial court’s action finding that carbon electrodes used in taxpayers’ businesses are exempt from use tax under § 40-23-62(11), Code of Ala. (1975). The taxpayers cross-appeal, contending the trial court erred in finding that the purchase of the electrodes by taxpayers was not a wholesale transaction as defined in § 40-23-60, Code of Ala. (1975), therefore making the purchase a taxable transaction.

Alabama Metallurgical Corporation and Ohio Ferro-Alloy Corporation (hereinafter taxpayers) are in the business of manufacturing silicon metal and…