Department of Revenue, Commonwealth of Kentucky v. Cox Machinery Co.

COOPER, Judge.

This is an appeal and cross-appeal from a judgment of the circuit court affirming an order of the Kentucky Board of Tax Appeals. That order related to the amount of sales and use tax owed by the appellee. KRS 131.370. On appeal, the issue is whether such judgment is supported by substantial evidence. On review, we affirm in part and reverse in part.

In January of 1977, the appellant, Department of Revenue, Commonwealth of Kentucky, conducted an audit of the appel-lee, Cox Machinery Company, Inc., to assess additional sales and use tax with respect to the latter’s expenditures.…