(a) General. In determining, under the 13(a)(2) exemption, whether
75 percent of the establishment's sales are not for resale and are
recognized as retail sales in the industry, sales to the ultimate
consumer of liquefied-petroleum-gas, whether delivered in portable
cylinders or in bulk to the customer's storage tanks, are recognized as
retail in the industry if they meet all the requirements for such
classification as previously explained in this subpart. The following
are not recognized as retail:
(1) Sales in single lot deliveries exceeding 1,000 gallons;
(2) Sales made on a competitive bid basis (this term covers sales
made pursuant to an invitation to bid, particularly sales to Federal,
State and local governments; sales made in a like manner to commercial
and industrial concerns and institutions are also included); and
(3) Sales for use in the production of a specific product in which
the gas is an essential ingredient or principal raw
material, such as sales of liquefied-petroleum-gas for the production of
chemicals and synthetic rubber; and
(4) Sales of liquefied-petroleum-gas for use as truck or bus fuel
and the repair and servicing of trucks and buses used in over-the-road
commercial transportation (including parts and accessories for such
vehicles).
(b) Sales or repairs of tanks. Sales or repairs of tanks for the
storage of liquefied-petroleum-gas are recognized as retail in the
industry, except: (1) Any tank exceeding 1,000 gallons in capacity; (2)
any tank sold or repaired on the basis described in paragraph (a) (2) of
this section or for the purposes described in paragraph (a)(3) of this
section; and (3) sales in quantity larger than involved in the ordinary
sales to a farm or household customer.
(c) Conversion units. Sales and installation of units for converting
pumps, stoves, furnaces and other equipment and appliances to the use of
liquefied-petroleum-gas, are recognized as retail sales except: (1)
Sales of the installation of such conversion units which involve
substantial modification of the appliance or equipment; (2) sales and
installation of such units to be used in industrial machinery or
equipment; (3) sales and installations made on the basis described in
paragraph (a)(2) of this section or in quantity as described in
Sec. 779.327; and (4) sales and installation of such units for vehicles
mentioned in paragraph (a) (4) of this section.
