Indiana Department of State Revenue v. General Motors Corp.

GIVAN, Justice.

General Motors (GM) filed an action seeking refund of sales/use taxes assessed and collected by the Department of Revenue (Department) on expendable packaging materials purchased by GM and used in transporting automobile parts manufactured at component plants and transported to other plants where they would be assembled in the construction of finished automobiles.

In its opinion, published at 578 N.E.2d 399, the Tax Court held that GM's purchases of packaging material were exempt from sales/use tax because they were used within an integrated production process. The court held…