ÿWPCQ% )Ѝ«!@ àœÜ…~GㆆÆŽNŽ[Ô…!@ à¼ÊKº.25ëYË—?𦒨Þ`}t¨˜ì·:â¿bôÔM2Ž 1u0š^±o ü+sì 1c%š‘ú|é%JÕŒÚʬ*—\Рæ€Úô“~Iƒ”„Iy¿D[rÝVh«×~Ä¿EÆbÞàuØL*™ŽÁµ˜»o˱M˜•ŸÁø‰ Ë!¦Šâxrƒ¤>‡v^²Õ´TPûÀig˜šê`©‹[Úú 4Âî&;_ò„ƒ”ãñ[¬/ŒÃÜs²õÚ7à2Éý¡Hï!L‹OlÒÐ%R[­,EÉ]Fê3.pßÈù ´ž/ÛˆÌi§ùƒÒ02uKjLí€M]SˆhÊDbSyèñÜy˜ô}K¼¸;åùtÏfÌÉÜÍÖVÒ¼}Ó¿ÏÈV«Æ¢Ã+¦Ë!;“|¬yJ`ʶDÍábd=M†Ùè0{A®³K;¾Î0;=Ã<~¾¢µTÙY¿^ÿç¶F™V9É,%ÁïÌ.òz¼ íþ¾c*ÎâC¦ÔFZVS3ˆ—Æõ ö€â¹‹«àBào+WãCGݺ߱á?;jëÕ;*à7¸’×ÙsºÓ“+6Êyl;¼ `,ŒT¢ø´b#É\ %% ^ + 0ˆ7 U,N¿ w 4 z% ÒŸ q € m‚ q™ Æ ÆÐÆ–Æ\È"Nêuì|aEÝÓßi²UN•iiiiiiiii 0DþþþbB B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B 0íJ J J J B7!7! 0¤T! D5ø! D--" 0KZ"Z" AS¥"Æø" 0¤¾# 0Db$ A«¦$˜\\ib01s01\clerk1nasÈÈ,,,,ÈÈ0»[„x1 (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular„‚–0ê:i¢×+00 ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|xÿU‹ÿÀÀÀ gÝ ƒRÞ‘$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôþÑò»»Ô€€Ý  ÝÔ_ÔA€catalyst€is€a€material€that€speeds€up€a€chemical€reaction€without€itself€being€consumed€in€the€process.€Ð ° ÐWhile€the€catalyst€participates€in€the€chemical€reaction,€it€is€unchanged€when€the€reaction€is€complete.Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5 ¾Ý ƒRÞ‘$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ôþÑò»»Ô€€Ý  ÝÔ_Ôð ðBatchðð€catalysts€are€used€in€closed„loop€manufacturing€processes€in€which€the€catalysts€circulate€throughÐ ° Ða€system€which€includes€a€reaction€chamber.€€In€this€reaction€chamber,€the€ð ðbatchðð€catalysts€come€in€contact€with€theÐ tÄ Ðproduct€ingredients€and€in€so€doing,€the€catalysts€promote€the€necessary€chemical€reactions.€€The€result€of€the€completedÐ 8ˆ Ðreaction€is€a€ð ðslurryðð€containing€the€chemical€end€product€and€the€ð ðbatchðð€catalysts.€€This€slurry€is€passed€through€a€filterÐ üL Ðwhich€separates€the€product€from€the€catalysts.€€The€catalysts€continue€to€circulate€through€the€system€while€the€productsÐ À Ðare€withdrawn€from€the€reaction€chamber.€€The€life€span€of€these€catalysts€ranges€from€seven€to€thirty€days.€€ kÝ ƒRÞ‘$ÝÓ  Óà  àòòÚ  Ú4Ú  ÚóóÔ€ôþÑò»»Ô€€Ý  ÝÔ_ÔCobalt€hydrate€is€also€used€in€a€closed„loop€system,€although€unlike€the€ð ðbatchðð€catalysts,€some€of€the€cobaltÐ ° Ðhydrate€ultimately€becomes€a€small€part€of€the€finished€product€(less€than€100€parts€per€million). rÝ ƒRÞ‘$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ôþÑò»»Ô€€Ý  ÝÔ_Ôð ðFixed„bedðð€catalysts€are€ceramic€or€metallic„like€pellets€of€varying€shapes€and€sizes€that€are€placed€insideÐ ° Ðlarge€vertical€tubes€or€other€vessels.€€These€vessels€have€holes€or€screens€at€the€top€and€filters€at€the€bottom.€€The€productÐ tÄ Ðingredients€are€introduced€into€the€vessel€at€the€top€and€passed€through€the€catalyst€bed€under€the€conditions€necessaryÐ 8ˆ Ðto€produce€the€required€product.€€The€ð ðfixed„bedðð€catalysts€remain€in€the€vessel€to€be€reused€until€such€time€as€they€areÐ üL Ðcontaminated€or€otherwise€lose€their€ability€to€effectively€promote€the€desired€reaction.€€This€period€may€be€as€short€asÐ À Ðthree€months€or€as€long€as€thirty€years. ÉÝ ƒRÞ‘$ÝÓ  Óà  àòòÚ  Ú5Ú  ÚóóÔ€ôþÑò»»Ô€€Ý  ÝÔ_ÔThe€definition€of€industrial€machinery€is€currently€codified€at€Tennessee€Code€Annotated€section€67„6„Ð ° Ð102(16)€(2004€Supp.).€€For€clarity,€however,€we€will€use€the€same€reference€to€the€definition€as€was€used€in€the€courtÐ tÄ Ðbelow€ð!ð€Tennessee€Code€Annotated€section€67„6„102(13)(A)€(1998). _Ý ƒRÞ‘$ÝÓ  Óà  àòòÚ  Ú6Ú  ÚóóÔ€ôþÑò»»Ô€€Ý  ÝÔ_ÔAt€the€time€of€this€dispute,€Tennesseeððs€sales€and€use€tax€statutes€also€exempted€industrial€materials€underÐ ° ÐTennessee€Code€Annotated€section€67„6„102(24)(E)(Ô_ÔiÔ_Ô)€(1998).(ÆúI Z‹6Times New Roman Regular ‹Ý ƒRÞ‘$ÝÓ  Óà  àòòÚ  Ú7Ú  ÚóóÔ€ôþÑò»»Ô€€Ý  ÝÔ_ÔThe€Department€concedes€that€the€Court€of€Appeals€erred€in€dismissing€the€entire€complaint€because€the€issueÐ ° Ðof€whether€the€cobalt€hydrate€was€exempt€as€industrial€materials€was€not€part€of€the€motion€for€summary€judgment€andÐ tÄ Ðwas€not€ruled€upon€by€the€trial€court,€nor€was€the€issue€raised€before€the€Court€of€Appeals.€€This€issue€is€now€moot,Ð 8ˆ Ðhowever,€because€we€find€that€the€cobalt€hydrate,€along€with€the€other€catalysts,€are€exempt€as€industrial€machinery.€€(#Ã$òòÚ  Ú0Ú  Úóó- ù-(|I2Þ‘$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€]i»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôþÑò»»Ô€€ d(|3‡„$££Ý ƒ£ª!ÝÑ€.ÑÑ8€]i»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV)ÿÿ!dxdx)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3‡„$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€]i»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€]i»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÑ  ÑÔ€¼]i»»»ÔÑ8€ ]XXdì»»d8Ñà@™ ™ ìàÔ‡îU]iÔIN€THE€SUPREME€COURT€OF€TENNESSEEˆÐ ° Ðà@kk$ìàAT€NASHVILLEÔ#†¼]i»îîU #ԈРÖ& ÐÓ  ÓOctober€7,€2004€SessionÐ üL ÐÔ‡X ]X»¼]iÔÌÔ#†¼]i»XX ]ñ#Ôò òEASTMAN€CHEMICAL€COMPANY€€v.€€RUTH€E.€JOHNSON,Ð úJ ÐCOMMISSIONER€OF€REVENUE,€STATE€OF€TENNESSEE€ó óÔ‡X ]X»¼]iÔÐ  ^ ÐÔ#†¼]i»XX ]©#ÔÔ‡X ]X»¼]iÔÌò òAppeal€by€permission€from€the€Court€of€Appeals,€Middle€SectionÐ  ^ ЀÔ#†¼]i»XX ]#ÔÔ‡X ]X»¼]iÔChancery€Court€for€Davidson€CountyÐ ú J Ðà@@øøìàNo.€99„2327„III€€€€€€Hon.€Ellen€Ô_ÔHobbsÔ_Ô€Lyle,€ChancellorÐ æ 6  ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<©` AßÐ ªú  ÐÌà@@TTìàNo.€M2002„02114„SC„R11„CVÔ#†¼]i»XX ]š#ÔÔ‡X ]X»¼]iÔ€„€Filed€November€24,€Ô_Ô2004Ô_ÔÐ ¥õ  ÐÌßA€V) °°` dE<|` AßÐ }Í Ðó óÌÔ#†¼]i»XX ]&#ÔÔ‡X ]X»¼]iÔÌÓ  ÓÓ=€]i»Ð»dÐd=ÓThe€sole€issue€in€this€case€is€whether€certain€chemical€catalysts€used€by€Eastman€Chemical€CompanyÐ d´ Ðfall€within€the€industrial€machinery€exemption€to€the€Tennessee€sales€and€use€tax€statute,€TennesseeÐ P  ÐCode€Annotated€sections€67„6„101€et€seq.€(2003).€€The€trial€court€granted€summary€judgment€inÐ <Œ Ðfavor€of€the€taxpayer.€€The€Court€of€Appeals€reversed,€dismissing€the€taxpayerððs€complaint€seekingÐ (x Ðrefunds€for€1995,€1996€and€1997€based€on€the€Court€of€Appealsðð€determination€that€the€chemicalÐ d Ðcatalysts€used€by€the€taxpayer€did€not€come€within€the€definition€of€ð ðindustrial€machineryðð€inÐ P ÐTennessee€Code€Annotated€section€67„6„102(13)(A)€(1998).€€We€reverse€the€Court€of€Appeals€andÐ ì< Ðreinstate€the€decision€of€the€trial€court€granting€summary€judgment€in€favor€of€the€taxpayer.Ð Ø( ÐÓ2ÓÌò òTenn.€R.€App.€P.€11€Permission€to€Appeal;€Ð ° ÐJudgment€of€the€Court€of€Appeals€is€Reversedó ó€Ð œì ÐÌòòÓ  ÓWilliam€M.€Barker,€Jóó.,€delivered€the€opinion€of€the€court,€in€whichòò€Frank€F.€Ô_ÔDrowotaÔ_Ô,€III,€C.J.,Ð x È Ðóóandòò€E.€Riley€Andersonóó€and€òòJanice€M.€Holderóó,€JJ.,€and€òòAllen€Wallace,€Ô_ÔSr.J.Ô_Ô,óó€joined.Ð d!´  ÐÌBrett€R.€Carter,€Charles€A.€Ô_ÔTrostÔ_Ô€and€Michael€G.€Stewart,€Nashville,€Tennessee,€for€the€appellant,Ð <#Œ" ÐEastman€Chemical€Company.Ð ($x# ÐÌPaul€G.€Summers,€Attorney€General€and€Reporter;€Joseph€F.€Ô_ÔWhalenÔ_Ô,€Associate€Solicitor€General;Ð &P!% Ðand€Charles€L.€Lewis,€Deputy€Attorney€General,€for€the€appellee,€Ruth€E.€Johnson,€CommissionerÐ ì&<"& Ðof€Revenue,€State€of€Tennessee.Ð Ø'(#' ÐÌJay€Ô_ÔStappÔ_Ô,€Nashville,€Tennessee,€for€the€Amicus€Curiae,€Bridgestone/Firestone€North€American€Tire,Ð °)%) ÐLLC.Ð œ*ì%* ÐÌM.€Kimberly€Ô_ÔStaggÔ_Ô,€Ô_ÔSmyrnaÔ_Ô,€Tennessee,€for€the€Amicus€Curiae,€Nissan€North€America,€Inc.Ð t,Ä', ÐÐ `-°(-ý ÐÔ_ÔCarl€E.€Hartley€and€John€M.€Phillips,€Chattanooga,€Tennessee,€and€Sandi€L.€Pack,€Nashville,Ð ° ÐTennessee,€for€the€Amicus€Curiae,€Tennessee€Chamber€of€Commerce€&€Industry.Ð œì ÐÓÆ ÓÌà@@OO&ìàò òOPINIONó óÐ tÄ ÐÌò òÓ  ÓÓ  ÓÓ=€]i»Ð»d»Ð»d=ÓFACTUAL€BACKGROUNDó óÐ L œ ÐÌÓ¶Óà  àEastman€Chemical€Company€(ð ðEastmanðð)€is€a€Delaware€corporation€with€its€principal€placeÐ $ t Ðof€business€in€Kingsport,€Tennessee.€€It€manufactures€various€types€of€chemicals€and€plastics.€Ð  ` ÐEastman€regularly€uses€three€types€of€catalysts׃ ×Ý ƒ+#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€in€its€manufacturing€processes€ð!ð€ð ðfixed„bedððÐ ü L  Ðcatalysts,׃×Ý ƒ+#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€ð ðbatchðð€catalysts,׃x×Ý ƒ+#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€and€cobalt€hydrate.×ƒØ ×Ý ƒ+#ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×€€The€catalysts€used€by€Eastman€are€essential€to€theÐ è 8  Ðproduction€of€Eastmanððs€chemical€products,€and€the€vertical€tubes,€reaction€chambers,€vessels€andÐ Ô$  Ðother€items€of€equipment€used€by€Eastman€in€the€production€process€are€specifically€designed€toÐ À  Ðwork€in€conjunction€with€the€catalysts.Ð ¬ü  ÐÌà  àFrom€January€1995€through€December€1997,€Eastman€paid€the€State€of€TennesseeÐ „Ô  Ð$1,254,976.48€in€use€tax€for€the€various€catalysts€used€during€that€period.€On€January€1,€1998,Ð pÀ ÐEastman€ceased€paying€use€tax€on€the€catalysts€used€in€its€manufacturing€processes€because€itÐ \¬ Ðdecided€that€they€were€exempt€from€taxation€either€as€industrial€materials€or€as€industrial€machinery.€Ð H˜ ÐOn€December€29,€1998,€Eastman€filed€a€claim€with€the€Tennessee€Department€of€RevenueÐ 4„ Ð(ð ðDepartmentðð)€seeking€a€refund€for€the€tax€years€of€1995,€1996€and€1997,€asserting€that€itÐ  p Ðerroneously€paid€use€tax€on€the€catalysts.€€The€Department€denied€Eastmanððs€claimed€exemptions.Ð  \ ÐÌà  àEastman€filed€a€complaint€in€Chancery€Court€against€the€Commissioner€of€Revenue,€pursuantÐ ä4 Ðto€Tennessee€Code€Annotated€section€67„1„1802(c)(1)€(2003),€seeking€a€refund€of€$1,254,976.48Ð Ð  Ðfor€tax€years€1995,€1996€and€1997.€€Eastman€alleged€that€the€catalysts€were€exempt€from€the€use€taxÐ ¼  Ðas€industrial€machinery,€as€defined€in€Tennessee€Code€Annotated€section€67„6„102(13)(A)€(1998).׃×Ý ƒ+#ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ׀Р° ÐEastman€amended€its€complaint€to€allege€in€the€alternative€that€the€cobalt€hydrate€catalysts€wereÐ œì Ðexempt€as€industrial€materials.׃Ü×Ý ƒ+#ÃÝòòÚ  Ú6Ú  ÚóóÝ  Ý×  ×Ð ˆØ ÐÌà  àEastman€filed€a€motion€for€summary€judgment,€which€was€granted€by€the€trial€court€on€JuneÐ `° Ð29,€2002.€€The€trial€court€relied€upon€òòAFG€Indus.€Inc.€v.€Cardwellóó,€835€S.W.2d€583€(Tenn.€1992),Ð L œ Ðto€determine€that€the€catalysts€used€by€Eastman€were€industrial€machinery€as€defined€by€the€statuteÐ 8 ˆ Ðand€therefore€exempt€from€use€tax.€€The€Commissioner€appealed.€€Ð $ t ÐÌà  àThe€Court€of€Appeals€reversed€the€trial€court€and€dismissed€Eastmanððs€entire€complaintÐ ü L  Ðagainst€the€Department.׃",×Ý ƒ+#ÃÝòòÚ  Ú7Ú  ÚóóÝ  Ý×  ×€€The€Court€of€Appeals€found€that€the€exemption€for€industrial€machineryÐ è 8  Ðin€Tennessee€Code€Annotated€section€67„6„102(13)(A)€(1998)€cannot€be€extended€to€include€theÐ Ô$  Ðcatalysts€Eastman€uses€in€its€manufacturing€process.€€Ð À  ÐÌÓ  Óò òANALYSISó óÐ ˜è  ÐÓ­ÓÔ‡X ]XXX ]ÔÌà  àIssues€of€statutory€construction€are€questions€of€law€that€this€Court€reviews€de€novo€withoutÐ pÀ Ðany€presumption€of€correctness.€€òòBryant€v.€Genco€Stamping€&€Mfg.€Co.óó,€33€S.W.3d€761,€765€(Tenn.Ð \¬ Ð2000);€òòFreeman€v.€Marco€Transp.€Co.óó,€27€S.W.3d€909,€911€(Tenn.€2000).Ð H˜ ÐÌà  àOur€duty€in€construing€statutes€is€to€ascertain€and€give€effect€to€the€intention€and€purpose€ofÐ  p Ðthe€legislature.€€òòSeeóó€òòLipscomb€v.€Doeóó,€32€S.W.3d€840,€844€(Tenn.€2000);€òòFreemanóó,€27€S.W.2d€atÐ  \ Ð911.€€ð ðððLegislative€intent€is€to€be€ascertained€whenever€possible€from€the€natural€and€ordinaryÐ øH Ðmeaning€of€the€language€used,€without€forced€or€subtle€construction€that€would€limit€or€extend€theÐ ä4 Ðmeaning€of€the€language.ðððð€€òòLipscombóó,€32€S.W.3d€at€844€(quoting€òòHawks€v.€City€of€Westmorelandóó,Ð Ð  Ð960€S.W.2d€10,€16€(Tenn.€1997)).€€Ð ¼  ÐÌà  àWhen€the€statutory€language€is€clear€and€unambiguous,€we€must€apply€its€plain€meaning€inÐ ”ä Ðits€normal€and€accepted€use,€without€a€forced€interpretation€that€would€limit€or€expand€the€statuteððsÐ €Ð Ðapplication.€€òòSeeóó€òòid.óó;€òòCarson€Creek€Vacation€Resorts,€Inc.€v.€State€Depððt€of€Revenueóó,€865€S.W.2dÐ l¼ Ð1,€2€(Tenn.€1993).€Where€an€ambiguity€exists,€we€must€look€to€the€entire€statutory€scheme€andÐ X ¨ Ðelsewhere€to€ascertain€the€legislative€intent€and€purpose.€€òòState€v.€Wallsóó,€62€S.W.3d€119,€121€(Tenn.Ð D!” Ð2001);€òòFreemanóó,€27€S.W.3d€at€911.€€The€statute€must€be€construed€in€its€entirety,€and€it€should€beÐ 0"€  Ðassumed€that€the€legislature€used€each€word€purposely€and€that€those€words€convey€some€intent€andÐ ° Ðhave€a€meaning€and€a€purpose.€€òòTennessee€Growers,€Inc.€v.€Kingóó,€682€S.W.2d€203,€205€(Tenn.Ð œì Ð1984).€The€background,€purpose,€and€general€circumstances€under€which€words€are€used€in€a€statuteÐ ˆØ Ðmust€be€considered,€and€it€is€improper€to€take€a€word€or€a€few€words€from€its€context€and,€with€themÐ tÄ Ðisolated,€attempt€to€determine€their€meaning.€€òòFirst€Natððl€Bank€of€Memphis€v.€McCanlessóó,€207Ð `° ÐS.W.2d€1007,€1009„10€(Tenn.€1948).€Ð L œ ÐÌà  àIn€addition€to€general€principles€of€statutory€construction,€we€must€also€consider€the€rules€ofÐ $ t Ðconstruction€specifically€applicable€to€tax€statutes.€€Statutes€imposing€a€tax€are€to€be€construedÐ  ` Ðstrictly€against€the€taxing€authority.€€òòSeeóó€òòCovington€Pike€Toyota,€Inc.€v.€Cardwellóó,€829€S.W.2d€132,Ð ü L  Ð135€(Tenn.€1992).€€However,€statutes€granting€exemptions€from€taxation€are€construed€strictlyÐ è 8  Ðagainst€the€taxpayer.€€òòTibbals€Flooring€Co.€v.€Huddlestonóó,€891€S.W.2d€196,€198€(Tenn.€1994);Ð Ô$  ÐòòCovington€Pike€Toyotaóó,€829€S.W.2d€at€135.€Ð À  ÐÔ#†X ]XXX ]ì#ÔÔ‡X ]XXX ]ÔÌòòÓ  ÓThe€Exemption€of€Eastmanððs€Catalysts€Under€Ð ˜è  ÐTennessee€Code€Annotated€section€67„6„102(13)(A)€(1998).óóÐ „Ô  ÐÌÓƒ,Óà  àÔ#†X ]XXX ]`,#ÔPursuant€to€Tennessee€Code€Annotated€section€67„6„206(a)€(2003),€industrial€machinery€isÐ \¬ Ðexempt€from€sales€and€use€taxes.€€Prior€to€1984,€industrial€machinery€was€defined€as:Ð H˜ ÐÌÔ‡X ]XXX ]Ôà8  àMachinery,€including€repair€parts€and€any€necessary€repair€or€taxable€installationÐ  p Ðlabor€therefor,€which€is€directly€and€primarily€utilized€in€fabricating€or€processingÐ  \ Ðtangible€personal€property€for€resale€.€.€.€where€the€use€of€such€machinery€orÐ øH Ðequipment€is€by€one€who€engages€in€such€fabrication€or€processing€as€his€principalÐ ä4 Ðbusiness€either€within€or€without€this€state.Ô#†X ]XXX ]:.#ÔÐÐ Ð Ð  ÐÌÔ‡X ]XXX ]ÔTenn.€Code€Ann.€ðð€67„6„102(8)€(1983).Ô#†X ]XXX ]p0#Ô€€An€amendment€in€1984€expanded€the€definition€ofÐ ¨ø Ðindustrial€machinery€to€read:Ð ”ä ÐÌà8  àMachinery,€apparatus€and€equipment€with€all€associated€parts,€appurtenances€andÐ l¼ Ðaccessories,€including€hydraulic€fluids,€lubricating€oils,€and€greases€necessary€forÐ X ¨ Ðoperation€and€maintenance,€repair€parts€and€any€necessary€repair€or€taxableÐ D!” Ðinstallation€labor€therefor,€which€is€necessary€to,€and€primarily€for,€the€fabrication€orÐ 0"€  Ðprocessing€of€tangible€personal€property€for€resale€and€consumption€off€the€premises,Ð #l! Ð.€.€.€where€the€use€of€such€machinery,€equipment€or€facilities€is€by€one€who€engagesÐ $X" Ðin€such€fabrication€or€processing€as€oneððs€principal€business€.€.€.€.Ðô$D #Ð Ð  ÐÌTenn.€Code€Ann.€ðð€67„6„102(13)€(1998).€Ð Ì&"% ÐÌà  àThere€is€no€dispute€that€the€catalysts€are€necessary€to€and€primarily€for€the€fabrication€orÐ ¤(ô#' Ðprocessing€of€tangible€personal€property€for€resale€or€consumption€and€that€Eastman€is€aÐ )à$( Ðâ âmanufacturer.€€The€only€issue€in€dispute€is€whether€the€catalysts€used€by€Eastman€are€ð ð[m]achinery,Ð |*Ì%) Ðapparatus€and€equipment€with€all€associated€parts,€appurtenances€and€accessories.ðð€€Tenn.€Code€Ann.Ð ° Ððð€67„6„102(13)(A)€(1998).Ð œì Ðâ âÌà  àIn€òòAFG€Indus.€Inc.€v.€Cardwellóó,€835€S.W.2d€583€(Tenn.€1992),€we€were€asked€to€interpretÐ tÄ Ðthe€definition€of€ð ðindustrial€machineryðð€as€amended€in€1984.€€At€issue€in€òòAFG€Indus.óó€were€Ô‡X ]XXX ]Ôtin€ingotsÐ `° Ðpurchased€by€the€taxpayer€for€use€in€a€molten€tin€bathÔ#†X ]XXX ]7#Ô€as€part€of€its€glass€production.Ô‡X ]XXX ]Ô€€During€theÐ L œ Ðmanufacturing€process,€molten€glass€was€floated€on€the€molten€tin€bath,€which€acted€as€a€conveyingÐ 8 ˆ Ðmechanism€and€a€surface€on€which€the€glass€was€shaped.€€835€S.W.2d€at€584.€€The€lower€courtsÐ $ t Ðrelied€upon€our€decision€in€òòTibbals€Flooring€Co.€v.€Olsenóó,€698€S.W.2d€60€(Tenn.€1985)€(ð ðòòTibbalsÐ  ` ÐIóóðð),€in€holding€that€the€tin€purchased€for€this€process€did€not€qualify€for€the€industrial€machineryÐ ü L  Ðexemption.€€òòAFG€Indus.óó,€835€S.W.2d€at€585.€€On€appeal,€we€reversed,€explaining€that€the€lowerÐ è 8  Ðcourtððs€reliance€on€òòTibbals€Ióó€failed€to€account€for€the€new€language€added€in€1984€to€the€industrialÐ Ô$  Ðmachinery€definition.€€òòId.óó€€We€explained:Ð À  ÐÌà8  àIn€òòTibbalsóó,€this€Court€looked€to€ordinary€dictionary€definitions€of€machinery€andÐ ˜è  Ðequipment€and€compared€the€predominate€characteristics€of€the€items€in€issue€to€suchÐ „Ô  Ðdefinitions.€.€.€.€ÐpÀÐ Ð  Ðà8  àÐ Ð Ð  Ðà8  àThe€òòTibbalsóó€analysis€is€appropriate€in€this€case,€but,€as€previously€indicated,€òòtheÐ H˜ Ðstatutory€definition€of€industrial€machinery€has€been€expandedóó€since€the€tax€yearÐ 4„ Ðinvolved€in€òòTibbalsóó€to€include€ð ðapparatus,€and€equipment€with€all€associated€parts,Ð  p Ðappurtenances,€and€accessories.ðð€€We€hold€that€the€tin€comes€within€this€expandedÐ  \ Ðdefinition.ÐøHÐ Ð  ÐÌòòId.óóÔ#†X ]XXX ]78#Ô€(Emphasis€added.)Ð Ð  ÐÌà  àIn€determining€what€was€included€in€this€expanded€definition,€we€looked€at€the€plain€meaningÐ ¨ø Ðof€the€words€used€in€the€statute:Ð ”ä ÐÌÔ‡X ]XXX ]Ôà8  àAn€apparatus€is€defined€as€the€ð ðtotality€of€means€by€which€a€designated€function€isÐ l¼ Ðperformed€or€a€specific€task€executed,ðð€òòThe€American€Heritage€Dictionaryóó€(1969),Ð X ¨ Ðand€as€ð ða€set€of€materials€or€equipment€designed€for€a€particular€use.ðð€€òòWebsterððsÐ D!” ÐNinth€New€Collegiate€Dictionaryóó€(1990).€€It€contemplates€a€collection€of€componentÐ 0"€  Ðparts€ð ðdesigned€for€a€specific€mechanical€or€chemical€action€or€operation.ðð€òòÐ #l! ÐWebsterððs€Third€New€International€Dictionaryóó€(1976).Ð$X"Ð Ð  ÐÌòòId.óó€€Applying€these€definitions,€we€found€that€ð ð[t]he€molten€tin€is€an€integral€part€of€the€bathðð€and,Ð à%0!$ Ðas€such,€was€ð ðboth€an€accessory€to€and€an€associated€part€of€the€tin€bath€apparatus.ðð€€òòId.óó€€We€alsoÐ Ì&"% Ðnoted€that€the€tinððs€ð ðprimary€character€in€the€glass€making€process€is€not€changed€by€the€fact€that€itÐ ¸'#& Ðis€used€in€its€liquid€state.ðð€€òòId.óóÐ ¤(ô#' ÐÌà  àWe€again€applied€a€similar€ð ðtotality€of€meansðð€test€in€òòTibbals€Flooring€Co.€v.€Huddlestonóó,Ð |*Ì%) Ð891€S.W.2d€196€(Tenn.€1994)€(ð ðòòTibbals€IIóóðð)Ô#†X ]XXX ]Æ?#ÔÔ‡X ]XXX ]Ô.€€In€òòTibbals€IIóó,€we€held€that€a€system€of€fans€andÐ h+¸&* Ðvacuums€which€removed€sawdust€and€wood€shavings€from€a€wood€cutting€and€sanding€operationÐ ° Ðand€delivered€them€to€boilers€for€creating€steam€and€electricity€was€industrial€machinery.€€891Ð œì ÐS.W.2d€at€200.€€The€Commissioner€argued€that€this€system€was€not€industrial€machinery€because€itÐ ˆØ Ðonly€transported€the€wood€waste€to€steam„generating€industrial€machinery€rather€than€actuallyÐ tÄ Ðproducing€the€steam€directly.€€We€rejected€this€interpretation:Ð `° ÐÌà8  àThe€construction€advanced€by€the€Commissioner€is€strained€and€does€not€comportÐ 8 ˆ Ðwith€the€plain€language€of€the€statute,€ð ðread€in€the€context€of€the€entire€statute,Ð $ t Ðwithout€any€forced€or€subtle€construction€which€would€extend€or€limit€its€meaning.ðð€Ð  ` ÐThe€spoils€removal€and€dust€piping€system€consists€of€machines€that,€in€combinationÐ ü L  Ðwith€the€boilers,€generate€and€produce€electricity€and€steam.€€Although€the€systemÐ è 8  Ðdoes€not€actually€produce€electricity€and€steam,€it€consists€of€machines€that€are€òòusedóóÐ Ô$  Ðto€produce€electricity€and€steam.€ÐÀ Ð Ð  ÐÌòòId.óó€(quoting€òòNatððl€Gas€Distrib.,€Inc.€v.€Stateóó,€804€S.W.2d€66,€67€(Tenn.€1991)).€Ô#†X ]XXX ]E#ÔÔ‡X ]XXX ]ÔÐ ˜è  ÐÌà  àIn€the€case€under€submission,€the€trial€court€found€that€the€catalysts€used€by€Eastman€wereÐ pÀ Ðð ðpart€of€the€totality€of€means€whereby€the€processes€are€accomplished€and€integral€to€the€process,ððÐ \¬ Ðand€therefore€fell€within€the€definition€of€industrial€machinery€as€set€forth€in€òòAFG€Indusóó.€€We€agree.Ð H˜ ÐÌÔ#†X ]XXX ]îJ#Ôà  àòòTibbals€IIóó€and€òòAFG€Indus.óó€establish€that€all€components€integral€to€manufacturing€orÐ  p Ðprocessing€are€exempt€under€the€definition€of€industrial€machinery,€whether€or€not€they€fit€theÐ  \ Ðtraditional€concept€or€image€of€ð ðmachinery,ðð€or€the€pre„1984€definition€of€machinery.€€òòTibbals€IIóó,Ð øH Ð891€S.W.2d€at€200;€òòAFG€Indus.óó,€835€S.W.2d€at€585.€€In€its€manufacturing€processes,€Eastman€usesÐ ä4 Ðthe€catalysts€in€conjunction€with€various€tubes,€reaction€chambers,€vessels€and€other€items€ofÐ Ð  Ðequipment€which€cannot€operate€without€the€catalysts.€€Clearly,€the€catalysts€are€not€part€of€theÐ ¼  Ðingredients€that€go€into€making€the€products,€in€that€the€catalysts€are€not€consumed€during€theÐ ¨ø Ðprocess.€€Rather,€the€catalysts€are€reused€for€months€or€even€years.€€Instead€of€being€processed,€theÐ ”ä Ðcatalysts€perform€the€processing€function€by€triggering€the€chemical€reactions€that€turn€raw€materialsÐ €Ð Ðinto€saleable€products.Ð l¼ ЀÌà  àThe€Court€of€Appeals€held€that€the€catalysts€were€not€included€in€the€exemption€for€industrialÐ D!” Ðmachinery€because€they€could€not€be€classified€as€ð ðmachinery,€apparatus€[or]€equipment.ðð€€First,€theÐ 0"€  ÐCourt€of€Appeals€looked€to€the€legislative€history€of€the€1984€amendment,€and€found€that€it€did€notÐ #l! Ðexpand€the€definition€of€industrial€machinery:Ð $X" ÐÌà8  àThe€1984€addition€of€the€words€ð ðapparatusðð€and€ð ðequipmentðð€to€the€definition€ofÐ à%0!$ Ðindustrial€machinery€in€Tenn.€Code€Ann.€ðð€67„6„102(a)(13)(A)€does€not€necessarilyÐ Ì&"% Ðreflect€the€General€Assemblyððs€desire€to€broaden€the€existing€exemption€far€beyondÐ ¸'#& Ðthe€legislatorððs€collective€understanding€of€the€meaning€of€ð ðmachinery.ðð€€While€theÐ ¤(ô#' Ðdictionary€definitions€of€ð ðmachinery,ðð€.€.€.€ð ðapparatus,ðð€and€ð ðequipmentðð€differÐ )à$( Ðslightly,€they€are€essentially€synonymous.Ð|*Ì%)Ð Ð  ÐÐ h+¸&* ÐHowever,€this€interpretation€is€contrary€to€our€holding€in€òòAFG€Indus.óó,€where€we€specifically€foundÐ ° Ðthat€the€amendment€with€its€additional€words€expanded€the€definition€of€industrial€machinery.€Ð œì ÐMoreover,€the€courtððs€reliance€on€legislative€history€is€misplaced€because€in€òòAFG€Indus.óó,€we€foundÐ ˆØ Ðthe€language€of€the€statute€to€be€plain€and€unambiguous.€€òòCompareóó€òòÔ‡X ]XXX ]ÔLipscombóó,€32€S.W.3d€at€844Ð tÄ Ð(when€the€statutory€language€is€clear€and€unambiguous,€we€apply€its€plain€meaning€in€its€normal€andÐ `° Ðaccepted€use)€òòwithóó€òòWallsóó,€62€S.W.3d€at€121€(where€an€ambiguity€exists,€we€look€to€the€entireÐ L œ Ðstatutory€scheme€and€elsewhere€to€ascertain€the€legislative€intent€and€purpose).Ô#†X ]XXX ]>W#Ô€€€Ð 8 ˆ ÐÌÔ‡X ]XXX ]Ôà  àÔ#†X ]XXX ]Y#ÔÔ‡X ]XXX ]Ô€Ô#†X ]XXX ]^Y#ÔThe€Court€of€Appeals€interpreted€the€definition€of€industrial€machinery€as€follows:Ô‡X ]XXX ]ÔÐ  ` ÐÌà8  àà ` àThe€phrase€ð ðmachinery,€apparatus€and€equipmentðð€is€broad€enough€to€includeÐ è 8  Ð(1)€the€devices€conveying€the€materials€and€components€from€one€part€of€theÐ Ô$  Ðmanufacturing€or€fabricating€process€to€another,€(2)€the€devices€such€as€stampingÐ À  Ðmachines,€presses,€caldrons,€vats,€vessels,€or€chambers€where€the€fabricating€orÐ ¬ü  Ðprocessing€occurs,€and€(3)€the€devices€used€to€convey€the€finished€products€toÐ ˜è  Ðpacking€or€storage.€€However,€it€does€not€include€the€fuel€used€to€run€theÐ „Ô  Ðmanufacturing€devices,€the€water€or€other€substances€used€to€cool€the€manufacturingÐ pÀ Ðdevices€or€materials,€the€building€housing€the€manufacturing€devices,€or€the€realÐ \¬ Ðproperty€on€which€the€manufacturing€facility€is€located.€€Similarly,€it€does€not€includeÐ H˜ Ðthe€raw€materials€or€components€used€to€produce€the€finished€items€of€tangibleÐ 4„ Ðpersonal€property.Ô#†X ]XXX ]ôY#ÔÐ pÐ Ð  ÐÌà  àThe€flaw€lies€more€in€the€application€of€this€definition€to€the€catalysts€used€by€Eastman€thanÐ øH Ðin€the€definition€itself.€€Contrary€to€the€Court€of€Appealsðð€suggestion,€the€catalysts€are€not€rawÐ ä4 Ðmaterials€or€ingredients€used€in€the€production€of€the€goods.€€Like€the€tin€ingots€at€issue€in€òòAFGÐ Ð  ÐIndus.óó,€the€catalysts€used€by€Eastman€are€components€of€the€equipment€and€apparatus€used€in€theÐ ¼  Ðmanufacturing€processes,€and€do€not€become€part€of€the€final€product.€€The€catalysts€are€Ô‡X ]XXX ]Ôan€integralÐ ¨ø Ðpart€of€the€totality€of€means€whereby€the€manufacturing€processes€are€accomplishedÔ#†X ]XXX ]É`#Ô.€Ð ”ä ÐÌò òÓ  ÓCONCLUSIONó óÐ l¼ ÐÌÓ˜aÓà  àIn€summary,€we€hold€that€the€catalysts€used€by€Eastman€fall€within€the€definition€of€industrialÐ D!” Ðmachinery€because€they€are€integral€parts€of€the€equipment€and€apparatus€used€by€Eastman.€Ð 0"€  ÐTherefore,€the€Court€of€Appealsðð€dismissal€of€the€complaint€is€reversed,€and€the€trial€courtððs€grantÐ #l! Ðof€summary€judgment€is€reinstated.Ð $X" ÐÌà  àCosts€of€this€appeal€are€taxed€to€the€State€of€Tennessee.Ð à%0!$ ÐÌÌà  àà ` àà ¸ àà  àà h àà À à_____________________________Ð ¤(ô#' Ðà  àà ` àà ¸ àà  àà h àà À àWILLIAM€M.€BARKER,€JUSTICEÔ#†¼]i»XX ]#Ô