CTA Case No. 340 (Decision)

�REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS WANILA � etittonu, .'� . ,qq� - Val' � � ~) ~ - X � � � � � � � � � � � � � X I This !a d isl of esp t o lector of ~ 26. 1�956. .,.t ylD tletftU'' � cla of of 13, 654. 2 np.res tf.n9 c. ..-.Ntlft ta on ty cotton ga ...-~teet y pet t onv. foll lng f- � � � en est llshech etf.� t:!oner � � st1c corporation e119a eel in the anu� facture . dlsuf.button and sale of co stare � glut� �eel corn o 1. pon prior application. lt� a1Deas starch ... rec lz �� � new an ... ... of anufact.urln c o. t o� cr � ln ly petlt10fter was aatecl. y t f 1- ance . exe~~Ptlon. n others, fr - the follo ln "X ,X X X �2. The percent� e tax on t sa es nuf.ctured products ~�apect to lch � tion � anted, and n r ter!als and pplles to u exelu� aively 1n tbe nufacture of sue pro� CiuctSJ 670

- 2- 1 t 1on f r to tond t on � at the ly :r imported s ulp 11 a of p for ......._. tr c corn) a that ls locally aa soon as � llar or nufaet period of sal �� to r 1, ~2. � te � � r 211, �- �� tax u M ently, � e.r � � it on re eated respondent to refun t e ~""'"'t collecte . cl paid �� . lee or ~o � sat1n r ls r�~��t . . . ln a le t r, v 26, 1 56. c tton starch � � lch re avalla 1� 1 671

- ... t � f.fU lly eov r d U1 I t o.t t a 1�� the ~r t ry of nc � d t !Ul 9 . 19~3. grant in tn � pay nt of .). enue t~ � (X '� -� on race p n r 1 56, t t l Yit lt y � 7 1 ch .. n 1 7. - t r pl Th lns 0 1 let 1 � 0l ct �� - r ala jtAZlad! tlon r- t � rul.tn or the cr tary f ters rtalntn nt of pu lie ct tra 0 � ~ d 1. 672

I � ... 4 - . n h t h t 1 p 1 la (: su tatn � a fr 1 � �e l� ely t - 1 (; .. y .. J:' nt yn 2 01 nt f c � l i 1n I n n lly - id t. td nt y o t nt ' ci- ly 1 el � 67 3

- 67 4

� ~0 .. - 67 5

� - 7 ... at ls to us 1$ � o reapo �ant. y 0 ai � nt fo:r � ejo n er t tl to t � ef.. feet t at institute within two yeara ay. nt � In co ec-ti n �lt t f.a r are s ad to c na r cate clu ad n t recor s f he �e a nt � 1} tran ltte this v~ en pres art of t �s vid � uri t trtal. ts nd certifieato re re epo�lta a.d c ot tf 676

� - 8- t d as p ents o t � dates as n� n, except for t e unt of 1, 738. 39 covered by fie! 1 ece pt o. 5~111 l, ate pr!l 1 � 19~5, the re$t of t t0 Hfunded 1s arr d y the two�y r er d rescr d y the aforec ed s ct n � te nfortunate t at th � ques� � �-.. - It I clee tlon as ra sed by T spo dent � latedly, aft r �t at1o of t rece ta f ct t s � 1 ence. v r, rantin �� - enee, wef nd r y nt not well� � It s 1 t t at and cut - �� ��1 � f cates t nts volv state at � t or sales and/ c nsat n v lv � h � � so, ause lt!e of cust an roce re. c ot or u 1 cat of the ort entr on eret � ( ItO S lnlstrat ve )J , 1 57. ne , � � � o. 1 � uch a es of f al p~ in s o � \ r entr es coul eastl ve occurre very h later th pr 1 iet, � a ch �� t te r es ond nt e over nt t s o � 677

� 340 -- th r cord� of the vu~iss oner of cu~to � and th latter'� or !nate D p ties o re p ndent un er ;; c:t n 6 of t v � Cod J. p t ngs or pu l ca o ~ of th f \al 11 !dati n re fteGted., er� f 11ure o pr ent ter l evtd nc:e ns n � c si f ther t lt. p � 1 filed th ty- per o pre crt d t n 11 , ' p l � 1125. con e ntly f nd o ho c rt ct tv c d th � v nt ...tl d c n its �� � 11 n pr ceed to det r hr t � ty cott a s tn st ay c ax und r pu lie ct o. 5, r y ,. ct o. Tb statutory r nt d t x X� rovia nd r hfch pet lon e ptl n y h r t ry of . n nc r ted ' ol o � ect on 1. y per on, c ny. or eo orat1o o 678

� -l � 1f � th t � ~ ly n d ustry ~ � c� n n all rn - t tv en 1: co n of nc 0 ,. g Xt n 0 tX .. t f t0 of corn h, :r c�� f � ��� er t t or rat1 v. llect r f 679

� - 11 - aae � �c 15, 1 ~l see also h rpe v. �� Y� � 1118, 1119, 134 is. 618). In t~ ternlt rporat1 c the v�rlo"a fin!t ons of the ..,.Oft ufacture� � in- t�rpreted a d un erato n o.r ~ nary a1 lflcatt � � ot � 680

� - 12 - 1 e re pe vol � a p.roe �� ra - ~ 1 1".' � 1 � ol � lt y, uy eh 1 n a.rtlcl 1 lt~ l � et , 1 et- t1 t rp n 1- 1 f n1 ae (;� 1:>, � et � 1� 681

.. 13- n"qu � tly. � t px-epa&'e and pro ee h s a::-t lea ln t~ n {or ey % adUy. com� ly 1 in he et. � b 1 ott y ot J: eon- wnlent contatnu s in :r related to t nuf�ture of cor atazc � ld fnatrate t n fie!ttnt p of ts ~. ~and 1 t al t sta-y. lt t � a y pu on. ti � c~atle � tn n neee stry f tbe pa nt all tax � dttectly aya 1 by � ch petso � putnuahlp. co a y or c po atlon 1n res~t to said nduauy. ltb Hspttet respo. nt �s c ntent on h t ty c tt n a 1 are not ex t fr eo en� M t ey ue ot t � nt ( xhlbt't ) to �- ecntary a ca cann t limit 1. � oper ti pq llc. tl T ace cannot val! the exe t1 n ly c t�� tually on c xclu� atvely � ecessary r- er te tha t uthottty c fer ad upon a ecret'ary of f ~� under actl n 11 f � 1 1 1t t he clalsiftcatl 85 1 c�~e~~lal nnt_.� '! ve ld prt�lle f tax �� tlon �� a 682

� - 14 - ecaasa y I try ( r � orporatlon of the bll �� � llectoz of Intunal fiV � JMHf)� .rula t � packlft of cQrft starch 1� 1n re to' '� \ factUH t r it foll oa;a eation ~ � or ..lea tax. nM ently. t co.,�..t Mlea tax pai her tlonu t nal 0 o eti� (u nut . 92 repnMnt c 1�� of t.y co t ila. 63 C7/

tEPU LIC OP TRE PlULIP ~IN~ COURT OF TAX APPEALS HAND.\ Petition��� C. T�� C � X � � � � ~ � -� ~ ~ ~ � � X G lG I' I concur in the ini c 11 � t at this � rt � j risdiction is c � t n- VOl'VeS cl i .f r rafund of n intern 1 rev n t X e � ni byt C lleetor f Intem 1 n, pura to c ions n � of at on 1 n- temal venue Code. Thia ort has en conferr d exclusive ellate Juris 1ct1 to revl by � 1 eclsions f th Collector l nte al evenu in c se 1n olvin refu 1 of internal evenu t xes. ( ction 7 , � ct. � 1125. ) � c ens t ng t x sought to r funded s n int 1 rev nu t x. I ala co c r ln e op1n1 at t e er ln � �� s f11 d ithin t st t t in ection 11 of ubl ic t o. 11 � this p 1nt, I wish o o e fr jority opinl ic 1 in co l t agr e ents 684

685

- 3- iti vry 1 1 �1 atit ex s �t f tX ti der � - an �p ' as � - , f 686

� p:ric � - 4- t ti nex at have ece ~�d th c d1tions led e of this f t, t ezwlM lt sh. 4l have re- quest onald z tJ. f � icl c t1on � ot that ndin h� l!wd � ion re t t t l rtati n f ~ -.teri ls, exc t eul ur, an the y petitioner, it 1 orted, f o Jenu ry. t 1 . 9 � 2l bales .r 211.1 7 p1 c � o co~ t ga 1c � ed t t� t � ct n at rdl. Th � ' ~1� ly of rate � n n c ss ry i n t � l at s onding t x on uc 1 ort 1 � � I f, �� 1 cl b gG ar ly t 0t ga no i aon peti 1t buei- ��� su ceasfully, t � re g in viol tion of th te~ o t � gr n o x i but ��� 1ng a ific t1 t ereo � lt is cont d t t t et.axy o in nee 1 no ort t xe tr li � by new and nec..aary n � I\at 10 u t.lblic t det� ta of Finance a l� p....l' t nt and r teriala y ted of u by n and ai p ideas G87

s- � -, - 1i 1f oil tt. p :r f ry f d ll - ss fie tion c 11 v n or n rlvl of X I0 ec 1 i t � in t! � 01 r � . � ' t - ~ 68