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TIDWELL v. SERVOMATION-WILLOUGHBY COMPANY

483 S.W.2d 98 (1972)

George M. TIDWELL, Commissioner of Revenue of the State of Tennessee, Appellant, v. SERVOMATION-WILLOUGHBY COMPANY, Inc., et al., Appellees.

Supreme Court of Tennessee.

July 24, 1972.

Attorney(s) appearing for the Case

David M. Pack, Atty. Gen. of Tenn., Milton P. Rice, Deputy Atty. Gen., Nashville, for appellant.

P.V. Jackson, III, Nashville, for appellees.

OPINION

CHATTIN, Justice.

Appellees instituted this suit seeking to recover certain penalties on gross receipts taxes which penalties were paid under protest.

The facts are undisputed.

Appellees are a chain of corporations engaged in the vending machine business. They have elected to pay taxes on the gross receipts of their business in lieu of privilege and sales taxes.

On August 4, 1970, appellees paid appellant a sum equal to one...

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