AT&T Corporation, Network Systems Division v. Loren Chumley, Commissioner of Revenue, State of Tennessee

AT&T sued the Commissioner of Revenue of Tennessee to recover sales tax paid on central office equipment for the years 1995 and 1996 asserting that the equipment qualifies for exemption as industrial machinery. Determining that the outcome of the case was controlled by AT&T v. Johnson, 2002 WL 3124708 (Tenn.Ct.App.2002), the Chancellor held that the industrial machinery exemption was not applicable. We affirm the judgment of the Chancellor.