CTA Case No. 3766 (Decision)

R E P UBL I C O F T HE PIITLIPP IH F.S COURT OF TAX APPF.AI.fl QUEZON CITY GENERAL ELECTRIC PHILIPPINES METER AND INSTRUMENTS CO.~ INC . ~ Pet :i. t.ioner ~ ��- - ver~:; us C.T.A. CASE NO . 3766 COMMISSIONER OF INTERNAL R EVENUE~ ~�{ -�� ..... ..... ~ - ~\e s pond f? rl t. � ..... -� - � .... .... >: DEC Ts I 0 N Th .i. s; c:a~;e .i n vo 1 ves <'"1 c 1. .::\i.m fo,- the l"�e fund of t h e amo un t o�f P57 ~B56.0(1~ n? fH" E?s~:m t.:i.nq et- n ::HH:>o usly paid OJ"' O VP I"' p ,::\ i d r.-,\ ci V<:In ce paid b y petitioner cove riMg i ts various importations of nylon pe l l et ~ a luminum in qots, cove r- a s semb l y and other mater ial s n ecessary f or the mant.lf i::\ctur-f"~ of elect:.J" .l.C m e t e r� ~:;; �fr o m ~rn � il ., 14 � .19~.2 to ,:Jun e-~ 16, 1.982 c::o vE> r.. ed b y thP fo ll u1.-J.inc1 C e n t r-a l Bank officia l receipt s as fo l lows: ,1 Q_'f,._.Dd Vi?.[) C: ~.....!~aJ e;?S T .i:>.):L P<:>.id. 1 283 187 4-:1.5-82 61. ~ 962 . 00 l ::::::::::0 4 38 ~:_\--� :1.9 �- 8 2 11.~123.00 L!.57270 6 �-�� 0~?--� 82 8,727. 00 6 -.. 0~:::' -- 8:? 9,66B.OO lO.i

DECISION CTA CASE NO. 3766 �- 2 - .1337448 6 �- 1 5 - 82 1 7 .0 3~.00 .t ~.::::::r. o788 6 - 16- 82 7 ,198.00 Total p a yments F' 1.1. :':' ~ 71 2 . 00 It appears from the records that the Bureau of Customs h? v.i.ed and collf:?cted on Pf:?ti t.ioner-' s importations the 10% advance sa les t ax based on the pr-ov .i ~:; ions of t htc? t�-la t .ion C:\ 1 In t:e lr l"l a 1 F\eve nu e Co d e. HovJe ve r- ~ .in a meetinq held on 1'1 ay 25 . 1 9f:32 ~ the Board of Gove rnors of the Board of In vestments granted the request of Ge neral E l ec tric Philippines Me ter- and Ins t.1r um e 1�l t ~s Co .. ~ In c . ( C:JE F't1 I C I ) e :-:ten s ion c1 �f .it s 1 00 /.. t .::;, :-: E�' ~�: '?!rnp t io n h e n e �f :i. t :;, und e r- f3ec tion B (a) o �f R. A. ~5 1f36 ( A1�� t i c l e 4�6 (a) of the Omnibus In ves tment Code) for another year to cover the period April .1.~ .1.98 2 to March 31~ 1983~ s ubject. to the pro v i s ion s of P.D. 1 395 . A ce o r-cling l. y ~ :rn a 1 f:? t t. e ,,.. cl a t ed A p r� .i 1 .1. ::T, , .1 9 f:3 4 ~ p !'? t i t .i. on f.? I"' ~ t h 1r o u q h i t s e xte rnal auditor. Svci p~ Gorres~ Velayo & Co., filed a claim for refund with the Bu rea u of Internal Revenue which is the s ub jF.~ct o �f' the instant r�eview. Petitioner a 11 eged that on the basis of the BO I e ~-: tens ion of its ta :-: e )�:empt.ion privilege~ .its intern a l revenue tax li abilities for the importations in question shou ld be computed only at 5% pursuant to P.O. 1352 as amended by P .. D.

DECISION CTA CASE NO. 3766 - 3- 1395~ and the overpayment is arrived at as follows: F'1.15~712 p ~':17~856 To da t.e ~ respondent has ne.i ther- gr-an ted nor acte d upon peti ti.oner ' s c 1 aim fot- t-efund. Hence~ t his instant petition for review. Counse l s �for the ~~ovet- nm ent in their� answer df.~nied �for lack of knowledge ot- in �formation the allegations made by the petit ioner in its petition for rev .i.ew. As special c:ilnd a'ff.i.r��mat iVf:? d Ede n5'es' they a llt~ged that i t is up to the pr?t.itionel'- to s how compliance with the provisions of Sections 292 and 295 of the Na tiona 1 In ter�na 1 Revenue Code of .1977; that the amount of F'57~856 was collected pursuant to law and regulations~ and that a c la i m for refund should be strictly construed against the clai mant . At the end of the hearing~ counsels for I respondent did not file a memorandum to dispute the l()S

DECISION CTA CASE NO . 3766 - 4- arqu meHts of the petition er in its memora ndum dated .July 20~ 19c:10 but men-:: l y mani �fested that they .:~n:~ ~; ubmittinq t:.hf:? case for- d ec: isic:m on the b c:~sir.;, o�f the pleading s and CTA records. The so le issue in this case is whether or not petitioner- Ge ner�al Electric Phi l ippines t1 eter� and Instruments Co.~ Inc. has erroneously paid or CJV~?r�pi::\id the advance sa 1 f:?S ta:-: due on the a foreme ntioned importa tion s. We are in fu l l aqreement with petitioner that '"' nd i s th~? Y.. (?�f c:>re~ (;:~nt .i. tlf?c:l to t .h e t�-e i 'und o i ' the amo unt of P5 7 ~85 6 .00 . Th e plt;?a dinq s the va t'- ious d oc urnt::.'n t ~5 �for� minq par- t of t h r,~ r-ecnr�c:l s h o i-'J tltat pf:?t i t.i. onf:? r � h as f :i. l ed va lid c:la.i.rn with Co mmi ss ionf?r o�f In tE:>t'TtC:I l Rr,?ve nue i::\ nd a t i mel y peti tion �f or- re vi ew within two year�~=.; �from payment of t he intern a l revenu e tax in ques tion. ~; ta ted, th e Co mmi ssionet" of In t.t~ r� na l F~r:?ve n tH? ha s neither gran ted nor acted f avor�ab 1y on the c 1a im �for refund. To this end ~ t h e p e tition er has SLI f �f i c i e n t 1y complied w .ith the pr-nv .i.s ion s of Sections 292 and 295 o f the Nat i ona l Internal Reve nu e Code of 197 7~ as amended.

DECISION CTA CASE NO . 3 766 - 5- L.ike\1-lise~ pet .i.t..ion~~~ r- \!'las a ble to pr�ove that during the period i t made the s ubject imp ortat i ons �from Apr�il 14, 1982 to .:.tune .1.6~ 1982~ .it paid the total a mount o �f p 1.1. ~.i ~ 71.2. 00 representing 1.0/. a dvance sales tax pursuant to the Nati ona l Inter nal R~:?venLH:'? Code. Con seq u en tl y~ when the Bo ar d of Inve st ments in its meeting of May 25 ~ .1.982 extended t he 1. 00/. ta:�: e:�:e mption bEmef .i. t s of the pet:.i tio n er under Sections 8(a) of R.A. 5186 (Article 46(a) of the Omnibus Investmen t Code) for� another ye,~r to cover th1:~ pf:?r.i.od Apr� .il .1.~ .1 982 to Marc h :::;. 1~ 1 9 8 3~ s ubj?.ct. to t h e pr ovi. s i cm s o �f P.O. No . .1 395 ~ the payment by petitioner of the .10% a d va nce sales t ax b eca me erroneous. The so l e limitation to the r.-~x tenr::;i.on b ei ng the .i.mpo s .i. t.ion o �f thE? 5/. customs du ty and 5/. intern a l re ve nue tax under P.O. 139~. Accordingly~ thi s Court f inds the a foreme ntion e d c o mpu tation by petitioner of its cla im for refund b ased on the 5% t ax due as mer i tor� iou s . WHEREFORE, it i s he r eby ordered that respondent Commissioner of Internal Revenue grant to petitioner General Electric Philippines Meter and Instruments Co., Inc. the refund of the sum of P57,856.00. 1(17

DECISION CTA CASE NO. 3766 - 6- No pronouncement as to c o s t s . SO ORDERED. Quezon City ~ Metro Manil a~ May 28 ~ 1 99 1 . Lx.. Q. OJ'"" ERNESTO D. ACOSTA Associ.;~.te Judge WE CONCUR: Judqe CERTI FIC ATION I herr-.? by certif y thl.s decision reached af t er due con s ultation among the me mbers of t h e Cour� t of Plpp ea ls in accordance \1-d th Section 13~ Article VIII of t h e Constitution. Presiding Judge Court o f Tax Appea l s lClR