Hervey v. International Paper Co.

George Rose Smith, Justice.

The appellees, two companies engaged in the manufacture of paper in Arkansas, brought these suits (consolidated in the court below) to enjoin the Commissioner of Revenues from collecting either the sales tax or the use tax upon the appellees’ purchase of certain chemicals and other substances that are used in the manufacture of Kraft paper. The appellees base their claim to an exemption upon those sections of the statutes defining and exempting sales for resale. Ark. Stat. Ann. §§ 84-1904 (i) and 84-3106 (b) (Repl. 1960).

Before the trial the parties narrowed the…