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transactions involving the Sentinel recycling machines
(recyclers) in petitioners’ case are identical to the
transactions in Provizer, and, with the exception of certain
facts that we regard as having minimal significance, petitioners
have stipulated substantially the same facts concerning the
underlying transactions that were described in Provizer v.
Commissioner, supra.
In transactions described in the Provizer case and
stipulated by the parties herein, Packaging Industries of
Hyannis, Massachusetts (PI), manufactured and sold2 six Sentinel
EPE3 recyclers to ECI Corporation (ECI) for $981,000 each. PI
manufactures thermoplastic and other types of packaging
machinery, as well as energy saving devices. PI holds itself out
as the world’s largest manufacturer of blister packaging
machinery and as fabricating the industry’s widest line of
thermoforming machinery. EPE recyclers are batch type machines
designed to convert expanded low density polyethylene foam into a
densified form called “popcorn” that can be further processed to
produce resin pellets suitable for some uses in the plastics
industry.
2 Terms such as sale, lease, license, and sublicense, as
well as their derivatives, are used for convenience only and do
not imply that the particular transaction was in fact a sale,
lease, license, or sublicense.
3 EPE stands for expanded polyethylene.
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