In a Letter of Findings issued by the Indiana Department of Revenue, a taxpayer whose main business operation was the finishing of furniture products provided by its customers and then returning such items was not able to employ either the manufacturing exemption or the resale exemption under a recent audit. The audit disallowed multiple items due to the fact that certain purchases of machinery and equipment were utilized outside the production process. Also, even though the taxpayer was required to follow specific customer guidelines in packaging and labeling the finished products for delivery back to the customers, the Department of Revenue indicated that such a requirement did not exempt the purchase of packaging and labeling materials nor did such purchases qualify for the resale exemption. (Letter of Findings, No. 02-0241, Indiana Department of Revenue, January 1, 2005)