Quaker Oats Co. v. Jackson

OPINION

BROOKS McLEMORE, Chancellor (Ret.), Special Judge by Designation.

The trial court ordered a refund of sales and use taxes paid under protest by plaintiff-appellee, Quaker Oats Company, hereinafter designated plaintiff, based upon a finding that the material taxed was “consumed” by plaintiff. The Tennessee Commissioner of Revenue has appealed and we reverse.

The Commissioner assessed the sales and use tax on a catalyst, 5% palladium on alumina (palladium catalyst), used by plaintiff in the manufacture of furan at its Memphis manufacturing facility. The palladium catalyst is purchased from…