produces or transforms is the frozen food in its customers storage areas. Interstate is seeking a consumption exemption based on the electricity it consumed in producing chilled ammonia that was used to condition the air in its customers’ storage areas. Therefore, the Department’s argument is meritless.
For the aforementioned reasons, this Court holds that, as a matter of law, that Interstate is entitled to a refund of sales and use tax under the consumption exemption. Therefore, this Court GRANTS Interstate’s motion for summary judgment and DENIES the Department’s cross motion for summary judgment.