CTA Case No. 964 (Decision)

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. ,. . l' 4 - 2 ... th nti � c 5 n ct d Rep blic ct o. � 3 7 f ctiv J n 17. � ich .ende ct � 1789 n p vidin for fror c ns t- f m th tax r.C - n t xe t� p v�d in t 1 li s to t 0 v c r y it in 1 tit... r fil d 1 nt �o i - ion f in e.-ch of h b e- c s ue nt d f r o r c t r or not i fr ns t - i tX f r c n Oi. v s l J.n n. r c i 5 th t t �s n ... l i b on th run s th-t s ~�ll 0 th ilti n c n in t it th r - fo ur n1 f t l v nu 'i ti cti n 4 f u t fo �t is n f t--x y vi t of of ct � J. � 0 , ction 1 f b t o. 17 o , - ...f. ct \ tl oth h' s nd nt clai ~ n tt tt ' li no v . io of t n tl e, tion <� cti r v es� v lu -such ll 47

#� �. ECI J: ) T .. C. T. A. E.;) os . 964 & 984 -3- anc , o mi ssi on and al l s: ilor c ar9e s� a ccmpe sating t x equi ier.t t o t he per- ce ge t es im os ed un th i s itl on or'gin l transa ctions eff cted by � r- ch nts , impoxte s , or anufaet ~ s~ s u 1 tax o be oaid f e he i h r ' 1 removal o{ s id corr.modi ies , g s, ~ . t or me ch andise fr om h custo1h use, o he os t off ice. x x x. I is e on nd e on e ~rf cf petitioner at he fora oing , r o i i o e o templ tes pureh as ~s und re e ip s of goo 0 ere . n isu fr r .., d 7he e the title o ne s :p ,f 1e qoo s or n nd'se s receiv is vesta � s ute y or ~r nsfur e to t o purcha er o r - cipient uneondition all j. nd since title to the said v ess s L.) t aine by th pa t i ons Commissicn u1til th e 1hole pu ch se P::7ice , ha 1 Lave .., en oaid (the pur- ch as' p-r:ice n ae 1 vus~el iz oy in ann 1 e ual in- s fo . a eri o of u~ ty yc.rs)p it is not lia- . ble or t e , The 1 , � iMpos s he co p ns atin t x up n co .. rJodi- ti es, goods , ��~.,.. �s o.,. c::-ch nd � .:>e , cxce 't ose ;;)reci- fie lJy e em. e~ , u ch0 sed f rei l.'ithcut the Phi ... ip :nes. he""e �s n th � g i the l ~r \' d e. r quire~ th a fo~ tho ox to ? c �ue it is esse ntial tha absolute tit le t o h . operty so importe or recei e from abroad e ansf~ �red fro th s acquired to t h urc s d or ceiv d i o is n ugh � for a pe~s~ to bo su~ject o t he compens . ti ng ax tha t ~ he nu .chased 0 ax le rtic le from i t hout the hi l . ppi eo (c~nti n umber Co. v. Collo of Int. Rev,, G. T. � I � ' 8, re e se on another gro nd -��h-;� 48 1 �

.. , � in � � o. . - 4 - cor c s - 1 3 , ct. 3 , l 6 ) 0 cc t t e ft .i i; n r ' t ould null.fy th pu - 0i h t n t X all ac 0 iv d fr 0 d for in th h"lip i l t fr nd ~n rn te c 1 Y� b t t , it1 to 0 n th n nt ' c i p i t y tl.n t x. I u nt at th y of s. � 0 ' ft tt (. �v f in t � XC t 1� 0 c ot 1 t ti 0 t. i � � t :. - i n thi c � :.L � i nt i h i 0 t y nt �n t t tX ti 0 t li fo ct� n y, v r c t� o 1 tf - :. 49

� t. Q t v nu fo h Vi -5- nd r c iv d eta f tt ilippin for it rn � f ct th t t g in t u f c t in t r v .ont ct ti n 1 rc le f " nt to ' tia ti ion n t ff t t tX � f the v t i co t nd ction 4 lie et � 7 � ct � � in 1 t io of h ct , titi r nt1tl to X p ft ti t x in ct to n the nd at d~ t t t X o� go th p ti t tf u ic ct � .n cl r y c ui fr th d fin � u li t' X ~tio. f r-t o i .ic t t f y of id ct; 1 nd :n X i f" X t� c nt in- s y 1 ct. o. � 0 �t �n � 1' .. b '! 50

11 . Q � rt t.�X � - - 6 I he 5 ct� n, . n e l y epubli<: . ct � 79 , , n, oi put i. ct �o. ' 7 t s l.l t 17 , 1 1 � c lt ce ta�n provi l(OS th reof wi ich wero s ci - fie 1 y na . olic ble =.. ac i ns eff cted prio t1�r .o under th c ndi im 1 id do n 1n sai s ction. � f 5 id in fu 5 t ~~ .. I

{) �I C. T� � - 7- �r b v quot d p 0 i . pe th t 00 s ac ir d by iv te c n~ isJion pri r to h ctivit.Y of lie e-'" o. J79 r su J c to th e s in t x and h t oor.ls c q ir th :r. aft r e a~ t x. r , it ct to 00 cq d r� or to t of id ct , .cti n " at y I"'--- riv t r y or end-us r -y pt ly �� the n v.ti 0 his u iti tion co t act ,.t't . p rati ns issio i -rd t ail hi s .lf of ny vi ~on of s id c � hie i5 f vcr bl to him n gr t in lik rn nn nrl tn h xten as an us4 filin his t' , �t r the a prov 1 tl i a~ da o y t . nd t' ~ a nr t"ons C Jmi ion i riz d to to ch nov tion em co dition h�t t nd - u ll ~i u e ll t1 J 0 lJ. a ions fo:r:- in is tory ct. "'ctio - of e u lie ct o. 79 m S th T s�on th r of avor to nd -u~ rs , - �ng ic" i t rm t' tax , ~ plic let t n c - tions f ct� ior o its a rova , p vi ed th Cl - h " 52

t e n - us r. -- cent ct / - - - - v ion of his util"z tion ~lie t nd- ti s xovid d e tions C mission '"'nd ( / h vol 0 i.n T.'ily s ll th n � obl 9 - i c� e vid nc sho s t t in ition r lied f r th of its tiliz.t on ov ring . . ls n qu stio t th t t th fo in v pr - - f s.ic1 ic c ions :r. no tr ct �' tt t t c nt �n pr i - ions f to t e uth _�z ~ nd n by t nt f 11 th n in 1 r �n ' t e - � t . co t t:r::~ ollv ov t # 1"

/ - c0 . rC.I os . 98 ed X Xo h ov r n doe not d ny t f et th t o tition- h c li d ith 11 t r .1 nts l in ord th t my av �1 it lf of 11 f vo prOVJ.SiO ublic Act � 3079. t i � how v , con - t e th h favo bl provisions m ntio in ct �on of aid ct ich m y e av a led of by n ap lie t for nov t ion f hi ut liz ti o co t ct ith th a tio' ns C is i on o n t �ncl d x co - t (; u uch x tion is n t x r ly �n th la � n r ovid"n t h t t p ovi- io s o o u l"c ct � 3079 sh 11 av il P� plic nt f r r n va ion o th i utili zation contracts, on co i th t i oplicant hall vo1 ntarily a - s 11th n 0 i atio s provid d in t n lt the 1 int to 1 c rs ns ho equ� r p r ti on s e o h n ct nt o � t ndato y ct on th m fo ting as thos o ac uir r pa tltio ods ft r �t n ctm nt . hi �s 0 b Cc US of th p ov� . sion th t one n p lie ion fo en vat�o 0 a utiliz - ti on co .t ct b n pp rov d , th f vo provi ions of i ct ha 1 b vail t the n nd -us r f lin~ his 1�c t�on ft t a . rov 1 of thi d tory ct.

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