Appeals, Nos. 50, 56 and 58, March T., 1962, from judgments of County Court of Allegheny County Nos. A-1805 and A-1806 of 1957, in cases of Pillsbury Mills, Inc. v. City of Pittsburgh and David A. Smith, Treasurer, and Same v. School District of Pittsburgh and David A. Smith, Treasurer. Judgments reversed.
Fred C. Houston, Jr., with him Houston & Houston, for plaintiff.
Edmund W. Ridall, Jr., Assistant School Solicitor, with him Niles Anderson, School Solicitor, Regis C. Nairn, Assistant City Solicitor, and David W. Craig, City Solicitor, for defendants.
Norman J. Cowie, with him Pringle, Bredin & Martin, and Hall, Haywood, Patterson & Taylor, for amicus curiae.
Before Bell, C.j., Musmanno, Jones, Cohen, Eagen and O'brien, JJ.
OPINION BY MR. JUSTICE COHEN
We are once again confronted with the question of what activities constitute manufacturing within the meaning of the Act of 1947, June 25, P.L. 1145, as amended, 53 P.S. § 6851,*fn1 and the Act of 1947, June 20,
P.L. 745, as amended, 24 P.S. §§ 582.1 to 582.13.*fn2
Under the authority of the above acts, the City of Pittsburgh and the school district, appellees herein, imposed deficiency Mercantile Tax assessments for the years 1953-1956 against appellant, Pillsbury Mills, Inc., for sales of its various flour products. These assessments were levied by the proper taxing authorities. Appellant claimed exemption from the taxes on the basis that it is a vendor of products of its own manufacture within the purview of the exemption provisions of the respective tax enabling acts. The County Court of Allegheny County found in favor of appellee taxing authorities and entered judgments in their favor. The propriety of these adjudications is presently before us.
According to the uncontroverted evidence of appellant, the milling operation involved in the present-day conversion of wheat germ to flour is an intricate technologically sophisticated process. It involves the transformation of literally hundreds of types of wheat into flours which are especially prepared for purchasers with greatly differing needs. The milling operation includes the grinding, blending and processing of the many types of wheat into flours of varying characteristics which will ...