CTA Case No. 4420 (Decision)

... - \Yb REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY JOHNSON AND JOHNSON, C.T.A. CASE N0.4420 (Phlls.), INC., Petitioner, - versus - COMMISSIONER OF INTERNAL REVENUE, Respondent. X- - - - - - - - - - - - DECISION This refers to petitioner's claim for refund or tax credit, In the total amount of Two Million Four Hundred Seventy One 'Thousa.nd Nine Hundred Seventy-Nine Pesos (P2,471,979.00), as alleged erroneously or Ill ega II y collected sales tax for the calendar quarter ended December 31, 1987. As narrated by petitioner, the following are the facts of the case. J Petitioner Is a domestic corporation engaged In the manufacture and sale of pharmaceutical and other products, one of which Is the Johnson's Baby Cologne ,+ (JBC, for brevity). For calendar quarter ending December 31 , 1987, petitioner's total sales of Its manufactured products 610

DECISION C.T.A. CASE NO. 4420 - 2- amounted to P188,415,118.00, Inclusive of sales tax bl I Ied separately In the Invoice amounting to P29,348,480.00, which sales were reported and the corresponding sales tax was paid to the B. I.R. Part of petitioner's sales reported for the calendar quarter ended December 31, 1987 and petitioner's sales tax paid to the B. I.R., were sales of JBC amounting to P17,092,724.00 and the corresponding sales tax thereon amounting to P2,176,218.00, computed as follows: Sales Tax P2,909,320.00 Less: Tax Credit for 73,102.00>: r~w materials purchased for JBC Sales Tax Paid for P2,176,218.00 Sales of JBC Petitioner contends that the above-mentioned amount of P2,176,218.00 is tax refundable or tax creditable, by virtue of B. I.R. Rul lng No.535-88, dated November 9, 1988, which states: "ThIs refers to your � Ietter dated September 29, 1988 requesting In behalf of your cl lent, Johnson & Johnson, confirmation of BIR Ruling No.59-81 dated March 30, 1981 which: held that your cl lent's product, Johnson's Baby Cologne, fal Is under the term� "other preparations", that as the chief Ingredient of the preparatIon Is a Icoho I , a d Ist I I Ied spirit, the same is subject to specific tax as such disti I led spirit, pursuant to then Section 138 of the Tax Code; that 61.:l

DECISION C.T.A. CASE NO. 4420 - 3- since the specific tax on the aforesaid alcohol has already been paid, no further specific tax is due and payable on the said product; and that no further percentage tax is due and payable on the same product. In reply, please be Informed that the aforesaid then Section 138 which Is the basis of the above rul lng was renumbered as Sect ion 121 (d) by P.O. No.1994 effective January 1, 1986 and again renumbered as Section 138 (c) by Executive Order No.273 effective January 1, 1988, quoted as follows: "(c) Medicinal preparations, flavoring extracts, and all other preparations except tol let preparations,� of which excluding water, dlstl I led spirits form the chief Ingredient, shal I be subject to the same tax as such chief Ingredient". In other words, said provision Is still In force since BIR Ruling No.59-81 was rendered up to the present. Accordingly, as long that the present product, Johnson's Baby Cologne,� Is the same product of your cl lent having the same alcohol content, this Office hereby confirms that said rut ing Is effective and stl I I applies to Its present product. <See also BIR Rul lng No.304-87 dated September 24, 1987)" Petitioner anchors Its claim for refund or tax credit of the amount of P2,176,218.00 not only on the above-cited rul lng but also on respondent's favorable action on Its other simi Jar claims for refund or tax credit, the most recent of which was in CTA Case No.4398,

DECISION C.T.A. CASE NO. 4420 - 4- involving calendar quarter ended September 30, 1987. In this case, respondent has consistently ruled that petitioner's sales of JBC are not subject to sales tax, and granted petitioner's claim, even before this Court has rendered Its decision. In addition to the amount of P2,176,218.00, petitioner I lkewlse, claims as refundable or tax creditable, the amount of P295,761.00 representing sales tax effect of cash discounts, erroneously not deducted from the sel I lng price In computing the base of the sales tax. Petitioner avers, such cash discounts which are agreed upon at the time of sale and Indicated In the sales Invoice, are deductible from the sel I lng price In computing the taxable base of the sales tax. Basis of Its averment is Section 5 (b) of Revenue Regulations No.2-86, which provides: (b) Tax based on gross sales-The percentage tax on sales shal I be determined by applying the appropriate rate of tax on the gross sel I lng price or gross value In money of the articles sold, bartered, exchanged or transferred. ~ computing the taxable base, discounts may be allowed as a deduction from gross sel I lng price provlded�sald discounts are given at the time of the sale and are expressly Indicated In the sales Invoice. Sales returns and allowances shal I be allowed as deduction from gross sales In the period when such returns and allowances are made. If the returns or allowances exceed the gross sales for the

DECISION C.T.A. CASE NO. 4420 - 5- the succeeding period or periods. (Underscoring ours)." On January 151 1990, petitioner f I I ed with respondent a request for tax credit or refund of erroneously or I I legally collected sales tax, In the total amount of P2,471,979.00. Four days later, or on January 20, 1990, petitioner elevated Its claim to this Court by fl I lng a Petition for Review. Respondent's Answer was fl led on July 9, 1990, stating by way of Special and Affirmative Defenses, the following: "6. Petitioner's claim for tax refund/credit Is pending Investigation; 7. In order that cash discounts may be a.l lowed as a deduction from the gross se1�11ng price under Section 5 (b) of Revenue Regulations No.2-86, It Is Incumbent upon the petitioner to show clearly that said oash discounts are given at the time of the sale and are expressly indicated In the sales Invoice;,,, 8. Petitioner's argument that Johnson's Baby Cologne Is the same product having the same alcohol content during the year I nvo Ived Is�' not supported by evidence. Hence, the same Is subject to sales tax; 9. It Is Incumbent upon the petitioner to show compl lance with the provisions of Section 230 In relation to Section 240 of the Tax Code; 10. In an action for refund and/or tax credit the taxpayer has the burden of showing that the taxes allegedly paid were erroneously collected and failure to

DECISION C.T.A. CASE NO. 4420 - 6- sustain said burden Is fatal to the action for refund; 11. The amount of P2,471,979.00 allegedly representing erroneously paid sales tax on sales of Johnson Baby Cologne and sales tax effects of cash discount erroneously not deducted from the sel I lng price In computing the taxable base of the sales tax was collected In accordance with law and existing regulations, hence, not refundable; 12. A claim for tax refund/credit Is construed strictly against claimants since a claim for refund of sales tax partakes of the nature of an exemption from taxation (Coli. of Int. Rev. v. Ledesma, G.R. No. L-17508, 31 SCRA 95, January 30, 1970) . The lone factual Issue Involved In this case Is whether or not petitioner is entitled to the refund or tax credit of the total amount of P2,471,979.00 as erroneous I y o�r I I I ega I I y co I I ected sa I es tax on sa I es of Johnson's Baby Cologne and also as cash discounts erroneously not deducted from petitioner's sales, both for the calendar quarter ended December 31, 1987. After a careful and exhaustive scrutiny of the records of the case, as wei I as the numerous Invoices presented, the Court had the following findings, to wit: 1. The total sales of Johnson's Baby Cologne amounting to P17,092,724.00 were not alI supported by invoices as shown In the table hereinafter presented; 2. There were invoices which signify that the sales tax was already based on the net sales, contrary to the allegation of petitioner that sales tax was based on the gross sales. Said

DECISION C.T.A. CASE NO. 4420 - 7- Invoices were marked as Exhs. "F-45" to "F-76", "F-79" to "F-87" and "F-96"; and 3. Invoices marked as Exhs. "F-7", "F-8", "F-9" and "F-28" represent sales for the 3rd quarter of 1987, thus, should not form part of the Instant claim as the latter covers only the fourth quarter of 1987. Consequently, as gathered from the exhibits presented and submitted by petitioner, the allowable refund that can be granted is hereby recomputed as fo I Iows: Recomputation of Refundable Sales Tax Pertaining to Sales of Johnson's Baby Cologne and Effect of Cash Discount per Court Computation for the Calendar Quarter Ended December 31, 1987. a> Sales tax corresponding to the sales of Johnson's Baby Cologne (P595,608.44 X 20%) P119,121.69 b) Effect of cash discount 85,962.89' Total amount refundable P205,084.58 JOHNSON & JOHNSON {PHILS. l, INC. SALES INVOICE SUMMARY For the Calendar Quarter Ended Dece1ber 31, 1987 Invoice s A l E s Refundable Sales Tax No. Other Products ,, J ll,.C,,~, Discount on Cash Discount Exh. Date 10-16-87 015703 p 182,580.60 5,440.90 691.34 F 10-16-87 015704 1,278.27 10-16-87 015705 12,503.~0 p 30,391.20 214.48' F-2 10-16-87 015706 2,707.80 207.92 10-16-87 015708 6,977.50 209.49 48.14 F-3 4,321.85 201.15 6,750.00 35.15 F-4 33.74 F-5 . Johnson Is Baby Cologne 'r,-

DECISION C.T.A. CASE NO. 4420 Invoice s A L - 8- Refundable Sales Tax Discount on Cash Discount Ex h. Date No. Other Products Es J 8 c* 10-15-87 015709 l,250.00 15,040.80 67.05 11.24 F-6 10-09-87 016466 1,339.60 10,584.00 66.17 6.00 10-09-87 016467 45.35 6.25 HO 10-14-87 016469 918.00 1,887.60�' 1,050.89 95.35 10-14-87 0164H l1,273.22 2,579.20 150.66 25.21 HI 10-14-87 016473 3,049.80 3,876.30 41.82 7.00 10-15-87 016474 146.63 24.54 F-12 10-15-87 016475 846.60 882.00 704.59 117.90 F-13 10-15-87 016476 2,968.20 5,013.60 1,108.54 185.51 H4 10-15-87 016479 14,l63.00 10,027.20 3,006.48 272.76 H5 10-13-87 0186l4 l2,440. 00 112.50 16.32 F-16 10-10-87 020125 60,860.00 14,451.60 165.69 7.89 F-17 10-10-87 020131 3, 775.42 5,662.80 119.05 5.67 F-18 10-13-87 020133 3,354.10 63.49 3.02 F-19 10-14-87 020140 2,409.78 3,5l8.00 1,238.70 112.38 F-20 10�01-87 020175 1,285.20 1,388.85 178.80 30.00 F-21 10-01-87 020177 25,075.00 71.52 12.00 F-22 10-01-87 020178 6,000.00 101.99 . 1. 93 F-23 10-01-87 020180 2,400.00 20.23 F-24 10-07-87 020395 3,422.28 80.64 78.81 F-25 10-14-87 020434 2,705.94 587.94 155.09 F-26 10-14-87 020438 4,688.70 2,009.99 355.13 F-27 10-02-87 020733 67,449.40 2,116.55 76.32 F-29 10-06-87 020755 60,441.60 454.87 9.89 F-30 10-12-87 020783 15,264.00 58.89 51.14 F-31 10-12-87 020784 1,976.40 305.94 79.18 F-32 10-13-87 020787 4,459.20 474.13" 5. 32 F-33 10-08-87 . 021212 4,900.80 105.05 125.76 F-34 10-13-87 021240 3,525.48 765.66 167.88 F-35 10-16-87 021272 8,886.40 724.47 74.73 F-36 10-16-87 021277 24,310.85 276.77 81.74 F-37 10-16-87 021278 6,708.40 355.52 60.06 F-38 10-16-87 021286 8,054.20 254.91 38.06 F-39 10-16-87 ' 021296 8,554.06 408.06 102.24 F-40 10-16-87 021297 12,978.96 1,107.48 81.81 F-41 10-26-87 017680 32,150.00 835.21 F-42 10-30-87 017687 18,000.02 60.49 F-43 � 10-21-87 . 019913 2,029.69 160.92 10-21-87 019914 5,400.00 1,310. 96 F-44 10-21-87 ( 019915 29,540.46 585.69 F-45 10-lt-87 019918 13,991.40 81.40 F-46 10-21-87 . 019919 2,731.50 187.98 F-47 10-21-87 019931 6,308.10 342.73 F-48 10-23-87 019935 11,500.80 797.87 F-49 23,246.40 170.07 F-50 4,318.25 F-51 F-52 F-53 * \Johnson's Baby Co I ogne

DECISION C. T.A. CASE NO. 4420 Invoice s A l - 9- Refundable Sales Tax Es Discount on Cash Discount Ex h. Date No. Other Products J 8 c* 10-29-87 019946 3,539.34 599.65 123.34 18.05 F-54 10-27-87 021324 1,870.00 92.37 55.07 F-55 10-26-87 021371 2,362.50 9,151.92 70.40 F-56 10-26-87 019123 3,398.60 1,887.60 101.27 26.55 F-57 10-26-87 018435 6,881. 70 477.79 398.85 F-58 10-26-87 017679 8,398.95 742.80 250.29 324.85 F-59 11-06-87 013413 7,555.20 6,808.80 281.40 29.51 F-60 11-12-87 017821 16,626.32 1,485.60 517.60 F-61 11-12-87 017833 12,707.76 378.69 2. 74 F-62 11-12-87 017834 87,423.60 5,168.40 2,808.12 30.92 F-63 11-17-87 017859 7,537.40 268.88 105.64 F-64 11-17-87 017860 3,026.40 15,040.80 90.18 15.37 F-65 11-02-87 018444 3,121.05 4,611.60 93.00 2.51 F-66 11-03-87 018445 9,599.00 2,472.80 440.06 F-67 11-05-87 018451 1,356.90 40.42 F-68 11-10-87 018457 39,127.10 136.70 1,165.98 F-69 11-13-87 018486 35,113.86 1,292.10 1,046.38 F-70 11-14-87 018487 79,083.05 2,804.88 F-71 11-14-87 018488 15,595.70 742.80 602.17 F-72 11�14-87 018489 11,197.70 407.37 F-73 11-14-87 018497 10,586.44 9,378.00 315.47 F-74 11-02-87 021402 4,337.92 1,887.60 133.35 F-75 11-07-87 013452 1,929.15 23,677.20 57.49 F-76 11-17-87 013495 4,998.65 18,756.00 187.47 F-77 11-17-87 013496 13,165.80 392.34 F-78 11-17-87 013498 1,274.40 1,585.50 37.97 F-79 11-19-87 017914 3,087. 70 92.02 F-80 11-27-87 . 017924 9,699.90 792.76 .. F-81 11-03-87 017932 2,340.60 F-82 12-08-87 013526 2,546.10 178.14 F-83 12-10-87 017938 75.87 F-84 12-15-87 017945 253.00 29.68 F-85 � 12-17-87 013531 15,780.45 1,160.08 F-86 12-10-87 016505 28,289.15 843.02 F-87 11-23-87 013502 10,581.20 594.78 F-88 12-04-87 013506 3,423.60 158.27 F-89 12-14-87 013530 56,095.20 2,377.21 F-90 11-27-87 016808 46,214.30 1,936.11 F-91 11-27-87 016809 3,570.00 176.36' F-92 12-11-87 016815 16.38 F-93 12-23-87 016816 331.50 184.76 F-94 12-16-87 016960 3,740.00 631. 32 F-95 � 11-27-87 017925 12,779.75 263.13 11-19-87 021589 7,244.10 471.11 F-96 5,635.20 52.61 1,064.88 F-97 * Johnson's Baby Cologne

DECISION Refundable Sales Tax C.T.A. CASE NO. 4420 Discount on Cash Discount Exh. - 10- Invoice s A L E s Date No. Other Products J BC* 11-26-87 021592 2,023.00 99.94 4. 77 F-98 12-02-87 021595 5,057.50 12-07-87 021646 2,700.00 249.84 41.81 F-99 11-23-87 023232 18,490.60 11-23-87 023233 6,176.52 80.46 13.50 F-100 12-10-87 023249 1,734.60 12-10-87 02U50 49,914.90 1,268.61 212.05 F-101 12-12-87 023251 35,910.00 12-14-87 023252 49,914.90 303.92 50.86 F-102 12-14-87 023253 19,814.45 12-22-87 023254 3,689.00 119.00 19.88 F-103 12-22-87 023255 158,283.30 12-10-87 023702 69,943.50 2,455.99 410.99 F-104 12-10-87 023703 31,860.00 12-15-87 023707 3,075.30 1,766.90 295.66 F-105 12-18-87 023712 2, 759. to 12-23-87 023715 2,456.02 4t t. 00 F-108 12-23-87 023716 864.45 11-18-87 866341 4' 13 t. 00 t ,359.42 227.23 F-107 11-15-87 217362 11-15-87 217363 912.00 253.09 42.31 F-108 11-16-87 217493 22,554.75 11-17-87 217590 10,361.50 7,788.17 1,303.31 F-109 11-17-87 217594 317,487.20 11-17-87 217637 878,250.00 6,943.50 t '168 .06 F-110 11-17-87 217661 11-18-87 217670 3' 347' 226. 00 3' 126.00 532.06 F-110 tt-18-87 217678 8,478.11 11-18-87 217679 53,730.00 151.92 25.42 F-111 tt-18-87 217680 tt-18-87 217699 2,160,681.00 136.30 22.81 F-t 12 11-18-87 217700 26,640.00 tt-18-87 217713 10,656.00 42.70 2.03 F-113 11-18-87 217701 5,328.00 tt-18-87 217729 204.07 9.72 F-1 14 11-18-87 217731 17' 1t5. 60 11-19-87 217921 5,355.00 45.05 7.51 F-115 11-19-87 217924 5,465.16 11-19-87 217934 7,140.00 1't 14.21 101.32 F-116 11-19-87 217974 2,612. 71 11-19-87 217975 51 t. 86 46.54 F-117 11-19-87 218028 639.99 11-19-87 218086 112,500.00 15,683.86 . 473.43 F-118 11-19-87 218088 225,000.00 32,435.66 26,171.85 4,364.90 F-t 19 1' 235.00 99,747.33 16,635.72 F-120 5,279.70 189,189.00 252.65 57.43 F-121 5,427.15 1,200.00 1,601.15 267.04 F-122 64,388.29 14,920.90 F-123 793.87 t 1.78 F-124 317.55 4.72 F-125 158.71 2.36 F-126 845.51 76.88 F-127 264;54 24.05 F-128 269.98 29.94 F-129 352.72 32.07 F-130 129.06 16.83 F-131 31.62 3. t t F-132 3,352.50 559.13 F-133 6,705.00 1'118.25 F-134 1,602.32 300.89 F-135 36.80 6.14 F-136 157.34 26.24 F-138 5,637.83 940.27 F-139 161.73 26.98 F-140 35.76 5.96 F-141 * Johnson's Baby Cologne

DECISION C.T.A. CASE NO. 4420 Invoice s A L - 11- Refundable Sales Tax Discount on Cash Discount Ex h. Date No. Other Products Es J BC* 11-19-87 218092 7,633.00 377.07 34.28 F-142 11-19-87 218095 405.45 20.03 1.82 F-143 11-19-87 218112 1,216.35 60.09 5.47 F-144 11-19-87 218122 5,773.20 285.19 47.55 F-145 11-19-87 218128 7,988.30 394.63 35.89 F-146 11-19-87 218129 1,295.40 63.99 5.81 F-147 11-19-87 218164 3,052.80 90.98 15.17 F-148 11-19-87 218176 4,940.00 147.21 24.55 F-149 11-19-87 218186 1,576.58 46.99 7.84 F-150 11-19-87 218187 540,000.00 16,092.00 2,683.80 F-151 11-19-87 218191 1,200.00 35.76 5.96 F-152 11-06-87 013417 20,178.95 601.33 66.78 f-153 11-06-87 013418 7,045.95 4,518.40 344.61 57.82 F-154 11-12-87 013483 6,449.80 6,442.60 384.19 17.02 F-155 10-11-87 015731 16,641.00 5,865.00 670.68 103.57 F-156 10-17-87 015732 34,082.70 9,378.00 1,295.13 217.30 F-157 10-23-87 015751 9,000.00 444.60 74.40 F-158 10-26-87 015752 52,893.60 1,576.23 264.46 F-159 10-26-87 015753 2,918.16 86.96 7.91 F-160 10-30-87 015785 4,500.00 134.10 2L50 F-161 11-06-87 015815 42,804.00 1,275.56 214.02 F-162 11-06-87 015817 7,004.40 208.73 35.02 F-163 11-09-87 015845 58,088.40 1,731.03 290.44 F-164 11-09-87 015846 . 21,509.70 640.99 108.59 F-165 11-13-87 015862 164,130.10 10,584.00 5,206.48 418.11 F-166 11-13-87 015863 86,972.55 2,591. 79 1,025. 76 F-167 10-23-87 016484 3,349.00 165.44 27.69 F-168 10-23-87 016485 2,465.00 121.77 20.38 F-169 10-23-87 016486 1,045.50 51.65 8.64 f-170 10-26-87 016489 3,825.00 188.96 31.62 F-171 11-03-87 016493 1,343.00 66.34 11.10 F-172 11-04-87 016494 5,062.60 250.09 41.86 F-173 11-12-87 016499 3,604.00 178.03 16.15 f-174 11-09-87 016610 82,418.82 7,303.20 2,673.72 342.92 f-175 11-10-87 016620 24,343.16 1,670.13 287.25 F-176 11-10-87 016621 1,811.70 141.88 23.71 F-177 11-11-87 016710 8,129.70 242.27 40.65 f-178 11-12-87 016721 8,918.40 611.86 102.28 F-179 11-12-87 016736 5,749.40 2,305.80 240.04 59.70 F-180 11-12-87 016750 2,104.60 62.72 10.53 F-181 11-12-87 016802 39,555.60 1,954.04 326.99 F-182 11-13-87 016805 19,720.00 974.17 92.76 F-183 11-13-87 016806 9,010.00 445.09 40.38 F-184 11-02-87 019304 35,159.90 4,921.20 1,194.42 200.41 F-185 fl Johnson's Baby Co'logn�e�

DECISION C.T.A. CASE NO. 4420 Invoice s A L - 12- Refundable Sales Tax Discount on Cash Discount Ex h. Date No. Other Products Es J s c� 11�0~-87 019949 15,~64.00 882.00 454.87 76.32 F-186 10-23-87 020912 21.17 F-187 11-0~-87 020934 4,234.50 2~,808.40 1~6.19 331.78 F-188 11-02-87 020935 33,810.60 46.60 F-189 11-12-87 0~1176 2,883.90 294.00 2,319.67 F-190 11-13-87 021193 213,750.00 902.60 1,760.0~ F-191 85,500.00 15,442.80 ~79.00 F-192 10-~1-87 0~1314 471.90 704.01 F-193 75 7. 35 10,517.35 3.39 F-194 10-22-87 021316 17,272.00 5,94~.40 4,206.94 F-195 10-22-87 0~1317 3,614.67 142.78 F-196 10-22-87 021318 6,861.60 943.80 37. 4~ 8.51 F-197 11-05-87 021337 I, 198.50 16.15 F-198 11-10-87 021344 5,218.15 853.~3 9.91 F-199 11-02-87 0~1391 6,663.60 17.55 F-200 11-02-87 02139~ 1,884.49 178.56 F-201 11-03-87 021406 85,674.40 338.96 33.3~ F-202 11-03-87 021419 59.20 F-203 IH0-87 021447 672.00 257.77 4.51 F-204 IHI-87 021471 3,403.22 198.58 117.27 F-205 IHI-87 0214 76 2,961.60 82.44 F-206 11-11-87 021478 3,232.79 3.36 F-207 IHI-87 0~1480 11,305.~5 20.03 15.96 F-208 11-11-87. 021481 110.17 14.81 F-209 11-11-87 0~1492 5,644.80 88.26 56.53 F-210 11-13-87 021534 3,623.50 336.89 F-211 11-13-87 021535 34,274.10 168.21 ~8.22 F-212 11-13-87 021536 10, 774.~0 134.88 F-214 11-13-87 0~1562 14 t 631.60 I ,481.57 22.63 F-215 11-13-87 021563 37,514.30 321.07 296.56 F-216 11-13-87 021584 4,849.70 436.02 53.87 F-217 11-13-87 021587, II ,887.~0 1t 117.92 73.16 F-218 10-~6-87 216089 62,424.85 158.58 95.85 F-219 10-26-87 ~16090 50,150.00 587.22 26.61 F-220 10-26-87 ~16101 3,672.00 3,083.78 71.26 10-27-87 216196 46,130.70 2,477.41 134.59 F-~21 10-27-87 216~00 14,091.00 181.40 2~4. 77 1o-~9-8 1,,. 216212 13,369.55 1,551.78 16.45 F-222 10-29-87 216~48 18,700.00 419.91 425.94 10-29-87 ~ 216255 2,975.00 398.42 70.04 F-~23 10-29-87 ~16~59 1,010.85 923.78 66.44 10-29-87 216261 146.97 84.00 F-224 10-29-87 216291 276.00 30.12 13.37 F-225 2,491.20 F-226 10-~9-87 ~16~94 3,735.00 8.22 5.02 6,072.00 74.24 .( 1.37 F-2~7 10-31-87 ~16326 8,028.00 Ill. 30 12.38 11-0~-87 216367 5,610.00 180.95 , 18.56 F-228 7,768.85 433.14 30.18 F-229 72.21 F-230 ~.664.00 ~77.13 4 ~31. 51 ~5.20 ~32.24 38.62 15.29 � Johnson's Baby Cologne \ L2.!.

C.T.A. CASE NO. 4420 - 1:3- Ino lot s A Es _ D....l..sc.._o_nt ll!hll~lblt Stitt tu ~- llate Ito. (!.thr }!~~~"~ J -.~--~--8 ..~~-- �!..Ml!!.!!!!L !~.: 11-02-li 216!10 29,fil1.82 869.23 48.11 ~-2H I t-<11-11 218371 1,619.0(1 101.44 IHI;H1 Wi3D 1,2l!i.21J 36.81 20.4r f�232 1 H12.�81 l Hi314 I ,tl'i.l(l ~ �233 H, ~16. �l�J 18.11 &.H 11-~l-81 wms j;>. :l��t. (H) F-lU 6~2.13 6.1t II��H-81 21fiHI ~ ,l)q~. �)<J f�2l~ lt��:!,Hi Wi'!9/ 1!'UI' 92.09 II �iiHT /9, �PitJI'l F-?.16 ! I �(l:l �8 i !ll:ili.li ! '!iii!. \l�l ~VJi ~1.19 II �H ~ r } It\ 1'1\1 I! , t I t. �:��.1 ,l�tE 11��1'!� 9 j Z,151 .~? l ~~. :)~ /16 'Iii l II '�' ' ) I t'; l� ~ .~. 19 If it I-~ i .' 1,; IIi l'i. '11 f. ?19 !. Jl\l I 11 t I ,j ~; 11 � l�: 1,t 6\~. , ... fi�\!Hi l.li f ) lfl ;~Hd~G ", :,r~-1. q:t ;�~.w 1. p II �ll�U ~-~' '41., .�},l ' /11 ft �H ~.<I: ~I ':llh j l. il\ I. 11 It �lHI /!II 1~(1 t \ I,~;L H ; 9' !'J f. if' l,'�'ii.JI �LIT f-:iH 11 . (t'l '~ { ?I h j '" l: .!1'1 l.ti' I ,�.H.,., II ��11�~1 i Iii iii ij i j,\9 1! '<ll' ll! ;hi~ I :~ i)~;, ~u !.U~ �� lF II :If �~I It �'ll $1 ,II~ p, .. fit .H il.N .�-ii !I dl 51 .!hlo1 1..'1')1,�1'.1 ~'d' :'I I. ll f. ~~ II tH-~1 ) lid '{�) I. Sid . �FI !, .t'�H.~\'1 64' ~/1 ! t I~ If �)I 'ii i I\\ I '1.' l. r,: '~�.J 6i:. 'iii l�l. l) r �'�,} ll \IHti t '1 t ,. ~' ~; 1'� l'��l. I I /lllhl �, I , ���,I . ��t "� f >� I II "1�1-iji '1 11i ~�, f(),!ii~.ll ~y.~J !I .'.14 ~I I lid 'it\ ?' .J I "~ li, ~-~ : II iii�F ?fid'1i I '�, (ti�J. 50 1, II;. �ii f4;~, 'I II -Ill-~ I !i ~'�:I 1f,,:�t.�H .,,: !.! �~ ::I i;';l~ g.'){,' .1.6 )f,l,~j 1.'11 II dl ~I ;� . P~. ,, ~ ~\ 'iq, 'ul ' I ~~ II If! Ill l Hi'�:� ~ f\ ; ,i.i')h,i.J(I .~'~~~I l ~� !I 'I'J�'.ii (;~''I 'I , ,, ' I I ;l.lli. :,~ ; 'I~: !l~'di l'�' �1 ~ g; 1! I)~~ I !B. I i f� ,.,, �lll'�l:i """� !,; II ~~(.i 1! I(I,H�.�.I'� ~~~. :.! ~ ~~, ~) 1 ''�'l .'I''��� I; n,l;t.!-� ~~~-~ �. ~ ;j II� il~ ~. 'll.H . :;~�:t II ��.~"; � ~; ? t h;'-,1 ? ::~' �t~ I i �(I')�!! 1 1, ' '�. lol l, 1iij �.. 1, II iJ�~ ~.~I ~ '~~~ :',} n ~. If. t��: I ~l ' ' '.f.~~ ,;,, II. (Iii"~ I ift\i,l; w��L n ll �)~ ; i -~ 1fi ~~. ~ r t. I " ir'l ~ .11 �~ I tHHHI H~.H II iJ~ ~ i ; I iif> Ji,l .,I. ��, I �). �I'� :�i; 4 ...'� 11�).41 ;,, 11- ,,; . a1 /I''.'� i�J �1 ~I 4. ~(I ! 1!t11; I ,J .'oJ � ~6 ,/.Ill I I �IS 91 It !:It'.:' f',.�t�l 1.~. I . 1.' /I Mil/ .'t' ;' i 1�1�; I :H.t, 'H"t.�'t.t 2�Jil, I~ I'��). ~'!I j'if;ifl, /,, ., �I f, <I ~~s ll ,, ; ; .I H.L~(I JL:9 �~ ~ ~ �; ~ : d I l~d i,uH.H IS, 41 l ;\.1 ! �,: r~ ! il~' ll : ~' :i � ��~tJ I il. (l(l HI. i; J/1 H, 'I.: ~�t. 'hi H. I.! Uli (l/ H.H !il 'i 4 (!, i.; '' ':') 4(1.63 :: li ~.I.,., .j;; 41.PiiJ.~�) IRL~a ~It\';\, l<l Hl.i i 3. ~~ \. II Jl,l)i ', ;; ! l. ~1.1 ~,ill

DECISION C.T.A. CASE NO. 4420 Invoice s A l - 14- Refundable Sales Tax Discount. on Cash DIscount:. llh. Date No. Other Products Es J B C* 11-08-87 216675 517.65 25.57 2.32 F-276 11-09-87 216858 178,890.20 93,780.00 8,125.57 1,31 1. 28 F-277 11-09-87 216859 14,374.80 428.37 71.44 F-278 11-09-87 216860 43,797.90 1, 305. 18 . 316.14 F-279 11-09-87 216865 50,538.90 1,506.06 282.21 F-280 11-10-87 216880 5,610.00 277.13 25.20 F-281 11-11-87 216951 6,120.00 302.33 50.41 F-282 11-11-87 216986 15,010.80 447.32 74.60 F-283 11-11-87 216992 147,000.00 4,380.60 730.59 F-284 11-11-87 216993 12,657.30 377.18 62.90 F-285 11-11-87 216996 22,935.76 247.60 690.86 40.65 F-286 11-11-87 216997 952.20 28.37 4.74 . F-287 11-11-87 216998 102,431.28 1,632.24 3,101.10 517.20 F-288 11-11-87 216999 8,386.50 249.92 41.67 F-290 11-11-87 217000 24,629.40 4,921. 20 1,929.11 321.63 f-291 11-11-87 217001 16,618.50 820.95 102.61 F-292 11-11-87 217002 3,370.57 166.50 18.47 F-293 11-12-87 217012 212,053.20 6,319.18 . 1,053.90 F-294 11-12-87 217015 121,528.80 67,464.00 5,63 t. 99 939.30 F-295 11-12-87 217016. 2,190,655.40 65,281.53 13,280.37 F-296 11-12-87 217018 132,100.60 66,540.00 5,919.49 987.24 F-297 11-12-87 217020 1,334.16 39.76 0.59 F-298 11-12-87 217026 54,000.00 1,609.20 268.38 F-299 11-12-87 217067 69,822.92 1,485.60 2,125.00 �� 226.16 F-300 11-13-87 217109 1,047.75 31.23 5.21 F-301 11-13-87 217124 . 2,095.50 62.45 . 10.42 . F-302 11-13-87 217127 1,047. 75 31 .23 5.21 F-303 11-13-87 217128 25,146.00 749.35 �. 124.97 F-304 11-13-87 217134 3,670.50 109.39 18.23 F-305 11-13-87 217135 <�'<; >}/l)ffi\11',,,. � 166:89 #'�'i,'";'!'''' 51600. u.,.,, ~,.... 27.U"'~'�.'�~� F-306 T0 TA l . H6,694,718.1S, ,,,mJi~!l't9ll9.4t~-.P86 1 .862.89 Petitioner has compl led with the provisions of Section 230 of the Tax Code. Its claim for tax-- , credit/refund was filed both In the administrative and judicial levels within two years from the� date of payment. * Johnson's Baby Co I ogne��

DECISION C.T.A. CASE NO. 4420 - 15- WHEREFORE, finding the petition partly MERITORIOUS and In accordance with law, the same Is hereby GRANTED but only In the reduced amount of P205,084.58. Respondent Is hereby ORDERED to REFUND or ISSUE Tax Credit Certificate in favor of petitioner only In the amount of P205,084.58, as erroneously collected sales tax on sales of Johnson's Baby Cologne, and also as cash discounts erroneously not deducted from petitioners sales, both for the calendar quarter ended December 31, 1987. t:r* r ~ AMON 0. DE~1~/ A SO ORDERED. Associate Jud I WE CONCUR: ~lQ.... ~ ERNESTO D. ACOSTA Presiding Judge (On Leave) MANUEL K. GRUBA Associate Judge

DECISION C.T.A. CASE NO. 4420 - 16- CERTIFICATION hereby certify that this decision was reached after due consultation among the members of the Court of Tax Appeals in accordance with Section 13, Article VI I I of the Constitution ~NEf.fo~L A~ Presiding Judge Court of Tax Appeals