The U.S. Supreme Court case Western Oil Refining Company v. Lipscomb, Clerk of the County Court of Maury County, Tennessee, as Successor of Thomas (1916) revolved around a dispute over taxation on interstate commerce. The Western Oil Refining Company argued that it was being unfairly taxed by the state of Tennessee for its oil business operations which involved both intrastate and interstate commerce. The company claimed this tax violated the Commerce Clause in the Constitution which prohibits states from taxing goods transported across state lines or interfering with interstate trade activities without congressional approval. However, after reviewing all evidence presented before them including how taxes were calculated and applied to various aspects of their business operation within Tennessee borders only - such as storage facilities used for storing oil products prior to shipment out-of-state - the court ruled against Western Oil Refining Company's claim stating that these taxes did not violate any constitutional provisions since they were imposed solely on intrastate commercial activities rather than directly affecting or impeding upon their ability to conduct interstate commerce.

The dissenting opinion in the case of Western Oil Refining Company v. Lipscomb argued that the majority's decision was inconsistent with previous rulings regarding interstate commerce and taxation. The justice contended that a state has no right to impose taxes on goods while they are still part of interstate commerce, as this would interfere with federal jurisdiction over such matters. He believed that until these goods had reached their final destination and were at rest within the state for use or consumption, they remained under protection from local taxation by virtue of being involved in interstate trade. Therefore, he disagreed with the court's ruling allowing Tennessee to tax oil barrels stored temporarily within its borders before reaching their intended customers outside the state.