CTA Case No. 945 (Decision)

"'E'PUBJ.IC OF T HE PHILIPPINES CO URT OF TAX APPEALS; QUEZON CITY F. SAMSON COMMERCIAL, C. T. A. CASE NO . 9~5 Petitioner, -versus- THE COMMISSIONER OF CUST0�.15, Respondent. x- - - - - - - - - - -x DECISION This is an appeal from the decision of respondent dated March 30, 1960, affirming that of the Collector of Customs of Manila in Seizure Identification No: 2515 (Customs Case No. 91) ordering the forfeiture in favor of the Government of merchandise allegedly im- ported in violation of Central Bank Circulars Nos . 44 and ~5, in relation to Sections 1363 and 1250 of the Administrative Code. The facts, as correctly fow1d by the Collector o~ Customs of Manila, are as follows: This case has reference to the ship- ment of 84 pieces complete unassembled tricycle, 30 pieces assembled auto for children, 15 dozens 11Hanes 11 brief shorts and 97 dozens "Hanesu tmderwear which were seized by the Appraisers' Division of the Bureau of Customs for violation of Central Bank Circulars Nos . 4-4- and 45 in relation to Section 1363(f) of the Re- vised Administrative Code and Sections 1363(m) 3, 4 and 5, and 1250 of the same Code. The importation was shipped from the Port of New York, by the Al~CROP LIM- ITED, per S/S 11STEEL CHEl-HST", consigned to P. Samson Commercial and arrived at the Port of Nanila on December 28, 1954.

DECISION - CTA CASE NO. 945 2 The shipment was declared in Customs Entry No. 105032, Exhibit UA11 series of 1954, a:s "15 cases parts of bicycles and of other cycles with a CIF value of $1,465.00" and is covered by L/C No. 13732, Exhibit 111 11 , dated September 6, 1954, with a value of $2,920.00, for "EP-730302, pa:bts of b;:cycles and of other cycles. 11 The importation is ac- companied by the corresponding Bill of Lading No. 4J, EXhibit D 11 11 , Consular In- voice No. 42975, Exhibit 11Bu and Com- mercial Invoice,_ Exhibit ucu, describing the goods as nl::> cases parts of bicycles and of other cyclesn, with a value of $1,465.00. The Central Ba.nk ,release Cer- tificate No. RC-7062, Exhibit 11E", is- sued by the agent bank, the Philippine Bank of Commerce, calls for 1115 cases parts of b i cycle s, Code No. EP-730302 with a CIF value of $1,465.00. When t1 h e importation - ~s examined by Mr. Emiliano v Belulia, Customs examiner, on January 26 and 27, 1955, he found that the actual importation consists of "84 pieces com- plete unassembled tricycles, 30 pieces assembled auto for children, 15 dozens 11Ha.nes11 brief shorts and 97 dozens 11Ha.nes" underwear. Hence, this seizure proceedings. (pp. 21-22, Customs re- cord.) The only issue raised is whether or not the for- feiture of the importation in question is in order. Petitioner assails the legality of Central Bank Circulars Nos. 44 and 45, contending that they were not validly issued, and even assuming the contrary, the latter circular was repealed by Section 6 of Republic Act No. 1410. The validity of Central Bank Circulars Nos. 44 and 45 is now well-settled to merit a detailed dis- cussion. In previous cases of similar issue (Pascual

DECISION - CTA CASE NO. 945 3 v. Comm. of Customs, G.R. No. L-10979, June 30, 1959; Acting Comm. of Customs v. Estanis1ao Leuterio, G.R. No. L-9142, October 17, 1959; Comm. of Customs v. Serree Investment Co., G.R. No. L-12007, May 16~ 1960; Comm. of Customs v. Eastern Sea Trading, G.R. No. L-14279, October 31, 1961; Comm. of Customs v. Santos, G.R. No. L-11911, March 30, 1962; Comm. of Customs v. Nepomuce.no, G.R. No. L-11126, March 31, 1962; Serree Investment Co. v. Comm. of Customs, G.R. No. L-19564, November 28, 1964; Serree Investment Co. v. Comm. of Customs, G.R. No. L-21217, November 29, 1965; Andres E. Lazaro v. the Comm.of Customs, G.R. No~~l790 and L-21794, December 24, 1965; Bienvenido Capulong v. The Acting Comm. of Customs, G.R. No. L-22990, May 19, 1966; _ndres E. Lazaro v. The Commissioner of Cus- toms, G.R. Nos. L-22511 and L-22513, ~ay 16, 1966), the Supreme Court upheld the validity of said circu- lars. Similarly, it rejected the theory that Republic Act No. 1410 repealed Central Bank Circular No. 45 in the case of Andres E. Lazaro v. The Commissioner of Customs, G.R. Nos. L-22511 & L-22513, supra, wherein it was held: 11 The alleged implied repeal of Cir- cular No. 45 by Republic Act No. 1410 is without merit for there is nothing in Sec- tion 6 of Republic Act No. 1410 which could be construed as having repealed Cir- cular No. 45. But even if we assume that said Act had the effect of impliedly re-

�- DECISION - CTA CASE NO. 945 4 pealing the .aforesaid Circular still such repeal cannot also abate the forfeiture case ~ainst petitioner for the simple reason that Republic Act No . 1410 cannot be given a retroactive effect so as to defeat any act or transaction effected or undertaken during the life of Circular No. 45. The authority we quoted in the pre- ceding paragraph equally applies to this instance . Indeed , under Artic~e 4 of the New Civil Code , ' Laws shall have no re- troactive effect, . unless the contrary is provided .' Here there is no such contrary provision. '' (See also Capulong v . Aseron, G. R. No . L- 22989 , May 14, 1966; Andres E. Lazaro v . The Comm . of Customs } ~ . R . Nos . L-21790 & L- 21794 , Dec . 24~ 19t>5, and authorities cited therein. ) The contention that the maximum liability of the imported goods for violation of Central Bank Circulars Nos. 44 and 45 should not include the thirty (3o%) per cent expected profits . is without merit. Petitioner having voluntarily filed the bond (Malayan Insurance Co ., Inc . Bond No. 8374 , June 24 , 1955) for the release, of the articles imported , it is now estopped from dis- puting the legality thereof . (See Philippines Interna- tional Sur-ety Co . , Inc. v . The Comm. of Customs, CTA � 1183, December 7, 1963 . ) the decision appealed from, the same ed, with costs against peti- tioner . SO ORDERED . Quezon City, April 11 , 1967 . ' <--~ ROMAN M. WE ~ ON : 'L,_~ ;Cf:~w-Presiding - J\N SUO R. ALV Associate Judge fL--- -1~ . ,----~ RAMON L. AVANCENA ) Associate Judge