Stanley Forman Reed

“ However, electrical energy is subject to tax if sold for consumption in commercial phases of industrial or other businesses, such as in office buildings, sales and display rooms, retail stores, etc., or in domestic phases, such as in dormitories or living quarters maintained by educational institutions, churches, charitable institutions, or others. ”

“ Petitioner argues that the test applied by the Court of Appeals, 'whether the predominant character of the enterprise carried on by such consumer is commercial', is erroneous and contrary to the regulation in that it directs attention to the business as a whole rather than to the activities at a given location. While the language quoted is susceptible to this criticism, the variation is harmless because the plant itself is the location or the focal point of all the relevant activities of each of these consumers of electricity. ”

“ The legislativ history indicates that the term 'commercial' was meant to apply to the nature of the business in which the energy is consumed, and not to the specific purpose to which each measurable unit of electricity is devoted. ”

“ There are ambiguities in this section of the regulation. In the second paragraph, without reference to separate meters, it holds that energy used in the commercial phases of an industrial business is taxable. The reverse would seem to follow as to industrial phases of a commercial business. Yet the third paragraph allows the avoidance of such a tax on industrial use only by the employment of separate meters.↑ For state cases to the effect that this business is primarily commercial, see e.g. City of Louisville v. Ewing Von-Allmen Dairy Co., 268 Ky. 652, 105 S.W.2d 801; People ex rel. ”

“ The quoted version, however, omitted the word 'processing,' which was formerly included in the list of activities exemplifying industrial consumption. We do not consider this deletion significant for purposes of oCum.Bull. 495 (1932) ”