CTA Case No. 323 (Decision)

-- . �. ... TI � ULU.P.iN �. : � L\X APPEALS lLA Pet t loner. r{\ ) \~1 -~~�- ~� ~... � 323 eapondent. x� - � � - � - � - � � - � -� D II his lt an appeal fr t Ki ion o t Col� lector of Internal evenue ol ln the p titlon r l1a le for the pa~nt of 12.066. � as deficiency anufactured y lt nd r ved fro ts fact ry fro epte r , 1949 to epte r 22, 19 , and of t 5U s of .00 and 300. �� dalnlstratlve� or �co r ise� penaltie � espon ent cla~s that the petition for revle s led yonc:l the atatutory periOd of t !r y ays, n , a su 1n hat it ��� timely filed , the amounts alre y �����sed. nt1one ave been validly t appears that on Dece er � � 1952, respondent saessed against petit oner tbe u of 484,762. 1, 1 e i&ed �� follows1 . 1. ef clency specific tax on � lack ~act� and � ally Double� cigarettes nu� factured nd r moved fro petit er' a factory fr ~uly , 19 9 to ove r 11, 1 ������������������������ 4 6.7 689

� 323 12, 66.00 2. 3. 1, 61. 1 ,9 . 91 L . . . . ......... , 762. 61 T def c ency spec! ic tax on clgaret es un � Ita � 1 to 3 were ������d y v ec;t on 137 of the attonal Inter avenue 0 �J � Xd ~reenta e taxe d sure cr~ � u der nd 186J c n atlng x, un er ctlo ec: � 1 2, petitioner 5 1 0 � � t � ettle xtr - judlclelly� its v olatlons of the avenue de a egulations o. 27 of the epart..nt of nance p yin the of 1 ,ooo. , Ln addition to the au of 4841 762. 61. he caM was t hereafter einvestl ated y t e onference taff f the reau f Internal avenue, upon petition of coun..l for petitioner. fter e tr� in , where n petit oner pr esented ra nd ocu n- tary evidence, a ,metaorandu was ltt d y c~ ns 1 690

-- f nc h t .... t - 691

23 -- ecisio of 0 t dt to r 10, l 5 � th decls!. n w 1c .itted to th oard o I'ax ppeal for � ou ., 1 l 0 &t t d b t � s nt a reply 0 n n � 1 tte.r of r 12, 19 eal11n ntion to h " l t r o t r � 1 3. or co ni nt r er of eoun -1 fo p ti n r Ju y 27, 955 r d 1 693

. c. .., !31 .J . � 323 - 6- v"<lence av n o n pr sentod in re nrd 0 th f l�ng by eoun el i) � t:tt Ol 0 f h $ l~t cr a d tob � A�9!")"" t r CO!'l of the ci i on u da t � � 1 r the f 1 ai 1 has � r, f ct of r r ion wi 1 in I 0 c un l 0 t f u y 21 , � i l tr f ly r 2 , 19 ( X � ) � 1 !J � for rt ~:,) . l fo t t r t Pn 5:> , ncl �hio 11 0 r 2 , 1955. no t h e r .P ( to r 25, 19!:.5) . c:oun .l .r p 1 pon nt t - h c i s o of r 14, ltbout ry f .. ti~m . lt 1 or :r,, nt 1 -.;~6 , r io t .y..o. t� 1 c ou. e r io r o ton of th ....ec.r t y f ln nc � ~ $ � 1 h eh s 1 0 to r h p tit1on 0 r vl it hi ourt n 694 ~f'

� 32-l - 7- ve r 2, 1956. Un er th facts stat d hove , as the p titlon for revi ew f led within 30 days ft r rece pt by pe� t1t!oner of th cle!on f s nt , pur nt .,o ection 11 of pu lie c:t o. 11251 ect!on-7 of ct � ll25 onfer up n t ta ~t e~lustve ppellat jurisdiction o revio y app� l d e1s1ons of th Coll�cto~ oi Int rnal � ee&e nvolvl!n efu d of internal , fee r oth r c r a n- altles 1 at n tt.reto. r oth r tt r ar.lslng r t � tlon 1 Internal or ot er law or p a � in!&tered y reau of Internal vo , ve eone!stently h 1 �d 1 0 ... involv di pu d f lnternol to � rived 695

- - . 32 J n. viou&ly, t e f 1 t 1 ca.. is ta ec sio , l 5 � In that lsi n, his ori 1nal At in a r- gate 2. 61 o nly 12. _is revlMCl ass� nt h 1n f , responcle t coul not r vis t & s 1 xt days r&o the date of .recef.pt y t � fo r f xp a f c � d l1 ' � 1- � pursuan to ec:t of x e.rles of 19 1. t tl t 1 c o of r spondent nClare , t es, th f t c a � t could v ppea1 aponunt to t r f to ne 16, l� 1 $ l!l ct of pu 1 c ct o. 1125) it n thir - d t of cl si n, or th sued for reeo r t hereof a th th ecp1s1t a provl n 0 1 n- rnal evenu � t Mr 1� as valled of y petitioner. Inst ad, it file a re est for reconsideration o t � ftnal decialon resp 696

� 323 - - ') i the elief th t tbe latter still had the p r to reviM or cancel the as��� nt. X..t ua now con- alder th~ effect of a id requast !or reconsider t!on. xecu !v o� .1101 con'!erred upon the ud of T x ppe la xelusive j~ ad!ct on to review y ppeal dec s ons of tbe ollector of nternal .- venue , the Co las onor of Cust s and he various city and provincial arda of sses nt ppea1s. n addition , it as e. owered to review p;oprJo - ctaiona of s 1d t x off e all within s xty days fr the date of 1asi n of a copy of ec~s on. n University of to. T a v. ard of x p eals, o. L-5701. June 23, 19~ , xecut1ve er � waa declar inv lid in so fa.r �� t ourt f !rat I st nca of the :Jur!.sdietlon n � ect on of the ev nue o � (r errln o ct ns or ~� cowry of Internal revenue taxes erroneoualy or ille� ally collect ), t � relt of ita prov alona af- ect the org nlzation nd dainistr�tlve fu 1 � of t � ard aa bel vall � e e act f his ecl - sion recogn &!.ng the all lty o xecuti � 401� relating to the a tn1atrat1ve unc lo s o ard ��� to 1 it the functions of the ard to !� n!atrat!ve appe�ls , review and approval of co~r lse and refund ease�. and ~ proR�12 ~evt.. other d - eislona of the llector of Internal � enue. the o IR!ss1oner of Cust � � and the provincial an c: ty ar � of Asaea nt p eala where the taxpayers concern 697

� 23 - 10 - o p 1. In ca e nvolv ng ntern 1 revenue tau a. taxpayers coul e!t .r � eal to the ar or pay � tax an IU8 f r r c:ov ry n t proper ourt of 1r&t Ins c u er ectio ev nue � In other ird $ t b19 st inistr - �� f F c ttve dy that coul t n ter al r v n � ca - . 9, x� ther y g the y 1 �� pellate powers. ( �a � 1� ) tnt. nat e 1 � 0 of r��� pondent s ot app� l "'p t t r 0 t 0 � It . .rely IOU ht t r tion of s 1 ar copy of h � �- claton. �dvlsin petltloner at said uld f!nal after sixty day ro the ate of r c t y the -.r of at co of t c to � - y� � ectf.o a xecutlv er 1 � in lch reapon nt f rnis copy f c!sio to t e r � p,rov� ��� he ar h v g r to rev � ~ propr!p any decls on of the ollector o I ternal evenue, once a copy of a dec:lsion as en 69 . &f;_

� 323 - ll. - au l.tte t., th Do ~d for nd r tlon 6 of XI uttv d r o. 4 i � , t Coll ctor of Int rn 1 eve ue lo on ovor th c � ft r he oard h fct on ov c � th 1- lector y not nt rto ny r for cons cer - t oa of th d e Th r to no n con errin th o r<! the po r of r v t t- ctor rt :&-e i ltted to or o r, 0- or r sa een s t � to t s nc - tlon nt rf r c b r at v of 1- e 1 wt t n~t on con r d ., pon s r or 0 y. r o� v f n1 the c-.a c ... 0 t t c 1 r x- an tr l y. ( e tlle c ur g o. v. ollect r, 1 C se o. 22 13, .} f the oer do th c se, ft r t xt - d y r od� t d c n the oll c or also co n th I conG - d�r to h e pl d y � not COUI'I 1 t t fro r n s nt, b c u und r t vall it t� ore could p t t x n h r f r lt recove:&-y t p op r ourt of s In t n � University of to. o � IX id hen, t erefore, tne cla!on of reapon ent �t�d t 10 , � 699

� d"t of c n- com�.ng f n 1. n d ~ � If ttoner t 11 .. � t t cs WI t t $0 th t it c ld nt t s d f th c r t c uld h ve app alod to id o rd y lrtu 9 of ExGcutiv o.r r o.4 1� � n c O;)s y 0 s up 1- ecta of sub tting d cic!on of t 0 n- t rnal eve u nrd ofT x rr 1 of 1 rp of t r or not ~ 1 fil d thin t t tutory rio � ~ti 11 f puL11c Act o. 1125 o 1 ~ t the ~ y ver ly y ci lon 1- leetor o �Internal v n 1 uch � 1� ourt thirty d y ct f. here, ho th dec s on of t ered pr or 0 tion of t 1 � - v co - � rued t � 1 lly o a to r it ty verMly a c uch c to p 1 thin th ty ays fr July 2l, 19M, �n th!s Court w s for ally organ! With t appolnt nt of t~o t nd the aclopt!on, 1n the 1nter!ca. f the les f t for r 700

� 32.., � 13 - of p al � Aceo ingly , n p 1 l r th s ft r ul 21 , h d to ~ cals od for ck of jur~ 0� L or Co. v. Coll ct r . c. � � o. 1, pt r � g Co. v. Coli ctor, c. � � 195 ' lpe dj n o. 107, Oc � 1, f on th t t t r p nd ng r quet 8tion ion of th oll e r , th h r o th ch to pp 1 1 �o c � nte th t f o ic � th en 1 of th r st fo �6� . .. tion. ( ti r z v. Col cto � c. � � 3,, , ug. 1, 5 � 0 v. oll ctor, c. � � , t . 27, 19o � anc yeo � , � 'Zl , 1 5 � nv nt on 1. ct r . c.r. � o. 1 v. z v� oll c r , o. :2 1, � 2 � 1 � v. Collector, � � 2 n � 5, 19~7; ..,t. ul's � ospltal � ol ct r, � � � o � 1 � � 1 7 .. stur a uu r nt 1 ctor, o. � ttf 7 01 .

�3 - 14 - f� nn � n of _h t tory porlo , l t 16 t ll tir t od th t ~~ch r qu~ t for r c n� Gid r t on f lud efo~ the cis on ol- 1 ~t r ini. y f 1. cau 0 h ~a t y fi d t r L. 1. u ~r Centr 1 � oll o. 20 , 2 , 1 7J A.t nlo �o � 11 ct r , � � � .. 1 � 0 � 23, l 57. 0) 11 ly. for r c n d t! r 1t 1 cn n 1c lnt an t r 1, d to p 10 (v 279 . lxty a s f yt r fa 1 or con~iderati n d to- ff c f r on t b t ff ct of '"y-d y r1 d fro uly 21, � tho�ity tor c - id r 0 it ci io n y irtu 1 f rd x p tf.'\; Tl {�\Ct th t li not if c f lM C !li or t r for � d ys � l 702

2 t �� � 0 oualy fil d ut of t t ~ rat � gr nt that h re e t for rec r ro. 3 su runnin of the th ty- day ar 1t tn tc 0 1 to this ourt , an h t the ptt.r 0 st rt to .run only fro the d t of r t tion t n1 of satd re est for r on , pet tlo r naverthelea lost ts r1 t p 1. h v!d nee � of recor a ows tha th said r est fo r co ~ider - t!on � den ed 1n th lett r of res ond e er 27, 1955. ( x � 6. ) t i& was received by counsel fo etit oner, t lt pp r that he filed another request o er tion to r ~ . 19~5 ( xh. D) . Assu 1n th t th al f the equest for r con l c iv o the sa dat bat tton f r reconsider tioo �� file on to r 25, no t e s ost and the runntn of the r J>P al c ntlnued to USp4t � cn - lzt r ~. 955 ( il on 1n the lett� respon ent a 1, tly ~� rec� Yed ot u 29 , recorda.} �ne 1 c un une 29. 1 :)6 qu in until (his ap 1 as) 1- nance� es AV b t u peu_5* ha running of he statutory per p~al� ./An a eal to the ecretary of lnance fr the dec s \ 703

DEC :;,I - �2 C.T�� C - 6- of the !lector of nt rn n do not su 5pend d rov d d ect on \ the runn of th 11 o epu 1 c 125. (T ng o � Collector , , 19 7.) Fro. 19 6 to nt f 1 d, petit oner c nsu d or than - quently pe it oner h lo t o pp 1. t n !t e ded to ppe c nd t watt for t 1 tt r �s d c o n t ct to this our , t t o t o th r f - Its rig t to � ju c 1 claion. on qu ntly, t ita etf.o � It c t nd t t t e count t o rc t tlone � 1 tter � is le � on cn r to r , 1 � e r f r on t 6 , 19~6 vi c n 1 for t ecretary o c on of t f raaer. r o v n e c , h i 1 tt r t� 19~ la c:J.~Ot d 704

� ,2 - 17 - I h d v� hat t nt - 0 c r 2:J, 1 y d, h n� r ndent d te 1� c r n ly, b h c nt t ft y h1 co nt 0 t r� � t 1 a � in t p i y y f lc c 12 � � ~0 e Y� 5 ins 1 io � �1 � � 2 � 1 !)7 � � (., A 705