CTA Case No. 3554 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY . SIRAWAI PLYWOOD AND LUKBER, CO., INC., Petitioner, - versus - C.T.A. Case No. 3554 COMMISSIONER OF INTERNAL REVENUE, Respondent. X- - - - -- ---X DECISION This is a claim for refund in the total amount o .f P99, 226 . 17 allegedly representing 25Y. o.f the speci.fic taxes paid on the oils and .fuels actually used by Petitioner in its operations ' as a duly licensed .forest concessionaire. During the period .from July 1, 1980 to May 31, 1982, Petitioner purchased .from various oil companies re.fined and manu.factured mineral oils, motor .fuels and diesel fuel oils which petitioner actually and exclusively used in connection with the exploitation and operation o.f its forest concession. The said oil companies paid and passed on to the Petitioner the specific taxes imposed on said oils sold to Petitioner under Sections 153 and 156 (formerly Sections 142 and 145> of the 1977 Tax Code. �32 3

- w DECISION - C.T.A. CASE NO. 3554 - 2- On' November 8, 1982 Petitioner .filed a writ ten claim .for . re.fund in the amount of P99,226.17 computed as .follows: SIRAVAI PLYVOOD LUftBER CO., INC. lfor~erly ftisa�is Luaberl July 1980 - nay 1982 VOLUftE PRODUCT SPECIFIC 251 ILiters) COST TAX REFUND DIESEL 1,390,42& P3, 98&, 229. 00 . P243,324.55 P&0,831.14 GASOLINE REG. 74,203 349,&75.00 &&,782.70 1&,&95.&8 GASOLINE EXTRA 4,72& 22,124.00 4,72&.00 1, 181.50 93,318 754, 9&1.00 74,&54.40 18,&&3.&0 OILS &LUBRICANTS 7,417 59,087.00 7,417.00 1,854.25 P991 226.17 AV GAS P51 1721076.00 P39& 1 904.&5 representing twenty-.five percent <251.> o� the speci.fic taxes collected on the oils used by the Petitioner in its operations as a .forest concessionaire. Such claim .for refund was never acted upon by the Respondent. Hence, this appeal. In its appeal, Petitioner, prayed .for an order requiring Respondent to pay 201. interest per annum, in addition to its claim .for re.fund, .for her alleged arbitrary re.fusal to refund the instant cla:iJm. Petitioner likewise prayed .for the costs o� suit. In support to its claim .for re.fund, Petitioner ~li e d on the case of Insular Lumber Company vs. Cour t o.f Ta>-. Ap p e al s and Co mmissione r of I nterna l Rev en ue, G. R. N - 31 057 , Ma y 2 9 , 1 981 in which the Sup r e me Co urt held t~ t e pr ov iso o f Section 5 of Republic Act No .1 435 is 62 4

-- - .... DECISION - C.T.A. CASE NO. 3554 -3- in effeb t a partial exemptipn from the imposed increased specific tax on manufact ured oils. Section 5 of Republic Act No. 1435 provides: "SEC. 5. The pro c eeds of the addi �tional tax on manufactured oils shall accrue to the road and bridge funds of the political subdivision for whose benefit the tax is collected: Provided, however, That whenever any oils mentioned above are used by miners or forest concessionaires in their operations, twenty - five per centum of the specific tax paid thereon shall be refunded by the Collector of Internal Revenue upon submission of proof of actual use of oils and under similar c~nditions enumerated in sub - paragraphs ~one and two of section one hereof, amending section one hundred forty-two of the Internal Revenue Code: Provided, further, That no new road shall be constructed unless the routes or location thereof shall have been approved by the Commissioner of Public Highways after a determination that such road can be made part of an integral and articulated route in the Philippine Highway System, as required in section twenty-six of the Philippine Highway Act of 1953." Respondent, however, asserted that the above - quoted Section of R. A. 1435 has already been repealed by Section 343 of the 1977 Tax Code <Presidential Decree Nos. 1158 and 1158 - A> which provides in part: "SEC. 343. Granting provinces, cities and municipalities shares in the specific tax on certain petroleum products. In addition to the internal revenue allotment under Section three hundred forty - four, provinces, cities and municipalities shall share in the specific taxes on the following petroleum products in such amounts as may be equivalent to the collections therefrom at the rates indicated her eunder. XXX XXX XXX 625

DECISION - C.T.A. CASE NO. 3554 -4- The addi t ional allotment is in lieu of local t axes imposed on petroleum products and for this purpose, Section twenty - four of Presidential Decree numbered 231, otherwise known as the Local Tax Code, has been repealed by Presidential Decree numbered 435 on l'larch :30, 197 4. XXX XXX xxx" Even assuming that Section 5 of Republic Act No. 1435 is still in effect, partial ta>: refund thereunder refers to specific taxes paid by miners and concessionaires on fuel oil, commercially known as diesel fuel oil, and other similar o ils having more or less the same generating power, and hence, according to the Respondent, Petitioner is not entitled to a refund of 251. on the specific tax it paid on gasoline, kerosene, avgas <aviation gas> or petroleum and lubricating oils. Respondent also contended that Petitioner's right to file a judicial I action for refund of all taxes paid before December 13, 198 ~ has already prescribed. Is the Petitioner entitled to the refund claimed representing 251. of the specific taxes paid on the oils and fuels actually used by Petitioner in its operations a s a forest c oncessionai r e? If entitled to the refund claimed, were they filed within the prescriptive period of two years ? These are the issues involved. We find for the Petitioner. In the case of Commissioner of Internal Revenue vs. Atlas Consolidated nining and Development Corporation, et II 626

DECISION - C.T.A. CASE NO. 3554 -5- al., G~ R. No. 93631, November 12, 1990, the Supreme Court, in a Resolutio n by the Third Division, had the occasion to rule that 11 the purpose �or the increase in the rate of tax cannot in anyway negate the policy behind the grant of partial refu nd. The Court sees no inconsistency between the increase i n specific tax rates and the retention of the ref und privilege. In �act, with the increased specific tax rates, the grant of partial refund to mining and lumber concessio naires is made more imperative considering that they seldom use the highways, t he construction of which are �inanced by specific taxes. 11 Moreover , we fi nd fitting the following co mments of the Supreme Court in the case of Commissioner of Internal Revenue va. Atlas Consolidated Mining and Development Corp. , et al. , <supra>. : "A reading of the legislative proceedings leading to the e na ct ment of RA 14 35 shows that mining and lumber concessio nai res were granted partial refund of s pecific taxes because the gasoline and fuel they consume is mostly used within their own co mpounds and roads. RA 1435 .. i gave these concessionaires relief, in the form of a tax refund, since their trucks and vehicles seldom ply the national : highways, the construction of which is funded by the specific tax collected by the national .government . There is therefor~ no rationale i .n conditioni n g the gr a nt � f refund on the payment of th ese mining o r l um~ e r c oncession aires of ~ ny ad ional l o c a l ta x . t1o - o ve r , Sect i on 5 states 'th a t ,. i-ot 25Y. s p e c i fic� t a x sh a l l b e refunde d by th e Co.L.L e ctor o f I nt er n a l Re v e n u e. Since i t is the l a tter 62 7

DECISION - C.T.A. CASE NO. 3554 -6- who co llects the specific taxes due to the na-tional government, then it follows that the refund refers to a refund o� the specific taxes . paid to the national government, not the specific taxes paid to the local government. " And in the more recent case o� Commissioner o� Internal Revenue vs. Rio Tuba Nickel Mining Corporation and Court o� Tax Appeals, G. R. Nos. 83583- 84, September 30, 1991 <202 SCRA 137>, the Supreme Court Third Division held: "to our mind, the proviso in Section 5 standing alone is enough basis for the grant o� refund. x x x In �act, the entire proviso o� Section 5 does not even make any reference to Section 4 which empowers mun icipalities and cities to impose the additional tax on oils sold or distributed within their territorial jurisdiction. What is clear therein is that the Revenue Commissioner shall refund 25 1. o� the specific tax whenever 'any oils mentioned above are used by miners or forest concessionaires in their operations and the procedure �or refund is complied with." <see also Aras - Asan Timber Co., Inc., CT A Case No. 3524, Dec. 17, 1993>,.- after l Finding for the Petitioner, this Court examining the Invoices offered by Petitioner as evidence ar ived at the :t; ollowing computation on the refunda ble 2 ~~ specific ta ~ es paid on Diesel, Lu b r icating oils, \� as~l in e an d Av Ga s fr o m Dece mber 2, 1980 to May 28, 1982 !". b e.''"' . n th e fo r mu la s ubmitted by the Pet i t ioner without 628

DECISION - C.T.A. CASE NO. 3554 -7- any com'ment �rom the Respondent on September 28, 1993 <see Compliance, p. 126 CTA Records>: QUAHT I T Y I H L I T E RS Invoice Date Oil and Regular Ho. Shipped Exh. Diesel Lubricants Gasoline AV GAS ---------------------------- ------------------------------------------- E0092 12-02- 80 E-85 6,000 3,000 E0098 12- 05- 80 E-86 9,000 E9008 12 - 10- 80 E- 89 9,000 E9014 12-12-80 E- 90 9,000 E9084 01- 20 - 81 E- 92 9,000 E9060 01 - 08-81 E- 93 9,000 M6307 01 - 08 - 81 E-95 2,010 E9068 01 - 12- 81 E- 96 6,000 3, 000 E9075 01 - 16 - 81 E- 97 6,000 E9091 01-23-81 E- 98 9,000 M6332 01-28-81 E-99 1,890 E9100 01 -28 - 81 E-101 9,000 F3005 02-02- 81 E- 102 9,000 100365 02- 12- 81 E-103 72 M6343 02-06 - 81 E- 104 1,260 F3011 02- 06- 81 E-105 9,000 F3016 02 - 10- 81 E- 106 9,000 F3029 02- 18-81 E-107 9 ,000 M6 278 02- 18-81 E-108 420 F3040 02-20-81 E- 109 9,000 M6281 02-20 - 81 E- 110 1,050 M6 2 8 6 02-26-81 E-111 80 F3047 02 -26-81 E- 113 9,000 F3055 03- 02-81 E-114 9,000 F3064 03- 05-81 E-115 9,000 M6295 03 - 05 - 81 E- 116 1,890 F3084 03-13 - 81 ~-119 9,000 F3097 03-17- 81 ~- 1 2 0 9,000 F3108 03 -23 - 81 6,000 F3110 03-26 - 81 r22- 12 1 9,000 F3115 03- 30- 81 -123 9,000 F31 20 04-0 3- 81 -124 9,000 1 2585 04- 3-81 ' - 125 38 F3l28 0 4-08-81 - 126 9,000 Q1834 0 4-10-8 1 ~- 127 6~0 F313:;; 0 4 - 10-81 ~- 129 9,000 f 3j38 04-1 4-81 'f,-130 9, 000 F3145 0 4- 21-81 C:-13 1 9, 000 Q.tB4:) 0 4- 21 -81 .:: - 132 2 ,310 48269D 04-24-81 E- 133 9, 000 G4 257 04-29- 81 E- 134 3, 000 G42S2 05-01-81 E- 135 9, 000 62 9

DECISION - C. T. A. CASE NO. 3554 -8- G4266 05-04 - 81 E- 136 9,000 Q1868 ., 05 - 08 - 81 E- 137 1,340 G4274 05 - 08 - 81 E- 138 9 ,000 G4284 05 - 13-81 E- 139 9,000 Q1873 05 - 20 - 81 E- 141 840 G4295 05-21 - 81 E-142 9,000 G4304 05-23-81 E- 143 6,000 Q1877 05 - 27-81 E- 144 1,540 G4309 05-27-81 E-145 9,000 G4313 06 - 01 - 81 E- 146 6,000 Q1900 06 - 30 - 81 E- 147 80 G4374 06-30-81 E- 148 9,000 G4328 05 - 06 - 81 E- 149 9,000 G4334 06 - 09 - 81 E- 150 9,000 G4338 06- 11 - 81 E- 151 9,000 G4348 06- 17 - 81 E-152 9,000 G4356 06-19 - 81 E- 153 9,000 Q1898 06 - 20- 81 E-154 420 G4365 06-25-81 E- 155 9,000 Q1899 06 - 26-81 E-156 1,260 G4381 07 - 03-81 E- 157 9,000 R3520 07-30 - 81 E- 158 620 R3507 07 - 06 - 81 � E- 159 420 G4388 07 - 08 - 81 E- 160 9,000 R3511 07 - 10- 81 E- 162 1,680 G4393 07 - 10-81 E- 163 9,000 G5251 07 - 15- 81 E-164 9,000 105525 07 - 20 - 81 E- 165 121 H5260 07 - 21 - I:H E- 166 9,000 H5265 07 - 23- 81 E-167 9,000 H5273 07 - 27-81 E- 168 9,000 H5278 07 - 30- 81 E- 169 9,000 H5285 08 - 04 - 81 E- 170 9,000 R3528 08 - 06 - 81 E- 171 1,130 H5293 08 - 07 - 81 E- 172 9,000 105845 08 - 08- 81 E-173 49 H5300 08 - 10-81 E- 174 9,000 R3534 08 - 12- 81 E- 175 1, 050 H5306 08 - 13 - 81 E- 176 9,000 105985 08- 17 - 81 E- 177 106 H5317 08 - 19-81 E- 178 9,000 R3539 08 - 19 - 81 E- 179 840 106105 08 - 21 - 81 E- 180 655 H5331 08 - 27-81 E-181 9,000 H53 25 08 - 24 - 81 E- 182 9,000 106315 09 - 01 - 81 E- 183 98 H5 3 40 09 - 0l - 81 E- 184 9,000 H53 49 09 - 04 - 81 E- 185 9,000 106395 09 - 04 - 81 E- 186 30 106415 09 -05-81 E- 187 30 I 3'~ ") 09 - f 'l-81 E-1 8 8 2,810 09 - 9-81 E- 190 H'5 ��sr-; 9,000 63 0

DECISION - C. T. A. CASE NO . 3554 - 9- 10 6 5 15 0 9- 11 - 81 E- 19 1 72 H536 2 ' 0 9- 12-8 1 E- 1 92 9,000 H5366 09- 15- 81 E- 193 9,000 10675.5 09 -2 1 - 81 E- 194 53 R3554 09-22-81 E- 196 2,810 H5379 09-23-81 E- 197 9,000 H5392 10- 01 - 81 E- 198 9,000 H5399 10- 06- 81 E- 199 9,000 H5408 10- 09- 81 E- 200 9,000 109055 10- 05- 81 E-201 45 H5416 10- 14 - 81 E-202 9,000 H5426 10-20 - 81 E- 204 9,000 H5430 10-22-81 E-205 9,000 109575 10-22-81 E- 206 30 R3558 10-22-81 E-207 1,680 109665 10-26 - 81 E- 208 49 H54 3 7 10-28 - 81 E-209 9,000 H5451 11 - 04 - 81 E-210 9,000 109855 11 - 06- 81 E-211 53 H5 459 11 - 07-81 E- 21 2 6,000 109945 11 - 09- 81 E- 213 38 H5463 11 - 10- 81 E- 214 9,000 H547 3 11 - 16- 81 E- 215 9,000 2201 35 11 - 16-81 E-216 76 H5480 11 - 18- 81 E- 217 9,000 R3567 11 - 18- 81 E-218 650 R3 561 11 - 09- 81 E-219 420 R3569 11 -23- 81 E-220 420 220 275 11 -21 - 81 E- 221 76 H54 9 4 11 -23- 81 E-222 9,000 H5499 11 -25 - 81 E- 22 3 6,000 80009 12-01 - 81 E- 224 9,000 R3571 12-04- 81 E-225 420 80024 12- 08- 81 E- 226 9,000 220845 12- 10- 81 E- 227 38 80031 12- 14- 81 E- 228 9,000 R3 5 73 12- 14 - 81 E-229 1,050 220905 12- 14 - 81 E- 230 6& 04310A 12- 15-81 E- 231 250 220975 12- 16- 81 E- 232 114 483700 12- 17- 81 E- 233 9,000 222115 12-21- 81 E-234 38 80039 12 - 22-81 E-235 9,000 800 46 12-28 - 81 E- 236 9,000 8 1939 01 -20-82 E-237 9,000 81 901 01 -04 - 8 2 E- 238 9,000 222295 01 -04-82 E-239 38 R3584 01 -06-8 2 E-240 880 819 10 01 - 06-8 2 E-241 9 ,000 81 920 01 - 11 - 82 E-242 9, 000 222415 01 - 11 - 82 E-243 79 81 926 0 1 - 12-82 E-244 9,000 631

DECISION - C. T. A. CASE NO. 3554 - 10 - R3591 01-13-82 E- 245 880 81929 ., 01-13-82 E-246 6,000 222545 01-15-82 E- 247 87 222705 01 - 21-82 E- 248 140 222725 01 - 22 - 82 E- 249 132 222775 01 - 25 - 82 E-250 38 J1755 01-25-82 E- 251 840 81952 01 - 25 - 82 E- 252 9,000 222835 01 - 26- 82 E-253 129 223005 02 - 01 - 82 E-254 155 223025 02 - 02 - 82 E- 255 179 f 7� . 81975 02-02 - 82 E-256 6,000 81985 02 - 11 - 82 E-257 9,000 J1770 02- 11 - 82 E-258 420 223215 02 - 11 - 82 E-259 79 223255 02 - 13- 82 E-260 87 223345 02 - 16- 82 E- 260 34 J1777 02 - 19- 82 E- 262 420 223455 02-20- 82 E-263 102 223465 02-20 - 82 E- 264 98 223555 02-25-82 E-265 76 223635 02-27-82 E- 266 114 223675 03-01-82 E-267 79 223745 03-03-82 E- 268 79 223835 03-05- 82 E-269 72 223885 03-08-82 E-270 110 225025. 03 - 12- 82 E-271 91 28159G 03-15 - 82 E-272 10,000 28161G 03-15 - 82 E- 273 8,000 225135 03 - 16- 82 .E- 274 98 225215 03 - 20 - 82 E- 275 57 225265 03-22 - 82 E- 276 l 76 28287G 03 - 24 - 82 E- 277 6,000 ~! 225325 03- 25- 82 E- 278 178 225445 03-29 - 82 E- 279 212 225525 04-01 - 82 E- 280 170 28349G 04- 01 - 82 E- 281 10,000 28336G 03-29 - 82 E-282 8,000 28335G 03- 29 - 82 ~ - 283 10,000 28334G 03 - 29- 82 ~-284 10,000 225635 04 - 06 - 82 ~ - 285 167 225675 04 - 08 - 82 ~ - 286 159 225705 04-12-82 - 287 159 2'}C:., 7 04 - 14 - 82 ~-288 76 2z-7PS 4- -82 I -289 132 22')8lS 0 4 - G-8 2 E- 290 45 22:'JS.JS 04 - 7- 82 E- 29 1 95 22585S 4 - '9- 8 2 t: - 292 132 2:;u: 15 . 5 -01-� 2 E- 293 129 2 2~!.75 . 5 -01- 2 E- 294 102 22/=, �[C.. tJ5 -02- 2 E- 29 5 76 2 2S2('c: 5 - 03-82 E- 296 132 63 2 I ': t,,I

DECISION - C. T. A. CASE NO. 3554 22703S 05-04-82 E- 297 - 11 - 121 125 227 11S ' 05 - 07 - 82 E- 298 6,000 333 887f000 22719S 05-10-82 E- 299 45 144 22720S 05 -10- 82 E-300 76 22722S 05 - 11 -82 E- 301 159 I 22729S 05 - 13-82 E-302 83 136 22737S 05 - 17 - 82 E-303 '121 22750S 05-24-82 E-304 125 _.1�. 22752S 05-24 - 82 E-305 7, 586 C4808 05 -24-82 E-306 22753S 05-26-82 E-307 22758S 05-27-82 E-308 22759S 05-28-82 E-309 T 0 T AL 36f 710 6fooo COMPUTATI ON OF 251. SPECIFIC TAX REFUND UNDER RA NO. 1435 MANUFACTURED OILS QUANTITY SPECIFIC SPECIFIC TAX RATE TAX DIESEL [(887,000 x 0.8429> f 1,0001 748 MT P1. 00/T 748.(}0 \ LUBRICATING OILS 36,710 L 0.07/L 2,569.70 0.08/L GASOLINE 6,000 L 0.08/L 480.00 ' 606.88 AV GAS 7,586 L 4, 404.58 ' TOTAL 25/. ; lf 101. 15 I MULTIPLY BY SPECIF IC TAX REFUND RATE SPECIFIC TAX REFUND UNDER RA 1435 Exhibits E, E-1, E- 2, E-4 to E-84, E-87 and E-91 were not included in the computation as they are already beyond the prescriptive period. The Tax Code provides �or the judicial remedy of �i ling a claim for refund within a period o� two <2) years from the d ~te o� payment of the tax pursuant to the ' provision o� Sect ion 230 <formerly Section 292>. ,., Sec t ion 135 of the Tax Code insofar as pertinent I P'O i d es '' ��n a t \~ specif ic taxes on local ly manufactured .\. ,; , l eu m p o du cts lev i e d under Sections 1 53 , 155 and 1~6 63

DECISION - C.T.A. CASE NO . 3554 - 12 - of this' title, except lubricating oil and grease, shall be paid within fifteen <15> days from the date of removal thereof from the place of production. " Emphasis supplied> It is therefore evident that the manufacturer of petroleum products has up to 15 day~ from the date of its removal within which to pay the specific taxes on locally manufactured petroleum products. As an exception, manufacturers of lubricating oils and grease have to pay the specific tax collected from the purchaser on the date of its removal from the place of production. Petitioner purchased both manufactured petroleum products and lubricating oils and grease. Thus, with respect to its purchases of lubricating oils, the specific taxes paid thereon are deemed paid at the date of its removal. The claim for refund of the 25Y. specific taxes paid on oils and lubricants ~urchased and delivered prior to ~ovember , 28, 1980 had indeed prescribed. Let us elaborate. Exhibits "E", "E - 1" to "E - 3'3" were purchases made on J- �u a ry 5 , 9 80 to June 27, 1980 but were not included in t >r o r igin al claim as Petitioner slaimed only purchases 1 9t~O to Ma y 3 1, 1 '382 <se e Pe tition for Review l-'� 2 ' Bu-r. even gr an t i ng ar guemdo t at th e y are inc 1uded i n the cla im. the s ame ha ve alreaoy prescri bed trey we rt ?Ur chases mad e pri or to No ve mb ex 28 , 1 980. i' 634

DECISION - C.T.A. CASE NO. 3554 - 13 - .�, The same reason is also true to Exhibits "E-40" to "E - 82", since they were purchases made on July 7, 1980 to November 26, 1980, again prior to the November 28, 1980 prescr iptive deadline. Exhibits "E - 87" and "E-91" were lubricants purchased on December '3, 1980 and December 12, 1980, hence, the claim for lubricants was filed beyond the prescriptive deadline of December 13, 1980 the date this instant Petit ion was filed. Exhibits "E - 83", "E - 88", "E -94", "E-100", E-112, "E- 117", "E -128", "E - 140", "E-161", "E-189", "E-195" and "E- 203" were invoices covering purchases o~ brake fluid which is neither classified as fuel oil nor lubricating oil. Hence, not included in the computation. Lastly, Exhibits "E-118" and "E-261" are not found on the record. As regards the 201. interest per annum being claimed i '' by petitioner, the rule is that no interest on refund o~ tax can be awarded unless authorized by law or the collection of the tax was attended by arbitrariness. <CoLlector vs. Prieto, 112 Phil. 907; Commissioner vs. Ast� ria s Sugar Central, 2 SCRA 1140; Commissioner of Ir� _er n al Reve nue vs. American Rubber Co . , 18 SCRA 842; Atl"s Fer tilizer Co rporation vs. Commission r of Internal ':"even e. 100 SCRA 5 5 6 ; Shell Philippinesp Inc. vs. Centr a l Bank of the Ph i lippines, 162 SCRA 6 28. > An 635

DECISION - C.T.A. CASE NO. 3554 - 14 - action ~s not arbitrary when exerci sed honestly and upon due consideration where there is room :for two opinions, however much it may be believed that an erroneous conclusion was reached. <F.B. Moreno, Ph~l~pp~ne Law Dictionary (3rd ed. ), p. 69, citing Imper~al Development Corporation vs. AHover, 08473- AP, August 23,1979.) Arbitra riness p resupposes ine xcusable or obstinate disregard of legal provisions. ( V~ctor~as Hill~ng Co. , Inc. vs. Commissioner of Internal Revenue, et al . , 19 SCRA 430. ) None of the exceptions are present in the case at bar. Respondent's decision denying petitioner ' s claim for refund was based on an honest interpretation of law. We, therefore, see no reason why petitioner should be entitled to the payment of interest. Moreover, the S upreme Court held in the Rio Tuba case that no interest shall be c harged in computing the 25% refund on specific taxes paid. <See Supreme Court Resolution dated March 25, 1992. ) 11 In the same manner, petitioner's prayer :for cost of suit cannot be awarded. It is an elementary rule that the government shall not be liable :for costs of suits unless otherwise provided by law. (Sfct~on 1, Rule 142, rpu �sed Ru les of Court; Collector of Internal Revenue vs. CoP �en t i on o:f Ph:lli pp � ne Baptist Chur.ches and the Court u- ~ x a p eal s, 2 SCRA 10. ) 636

DECISION - C.T.A. CASE NO. 3554 - 15 - WHEREFORE, in a ll the :foregoing, Respondent Commissioner of Internal Revenue is hereby ORDERED to REFUND the sum of P1, 101. 15 in :favor o:f the herein petitioner which is equivalent to 25/. partial re:fund of specific taxes paid on its purchases of fuel oils and lubricants pursuant to the provision of Section 5 of Republic Act No. 1435, in relation to Section 142 <b > and <c> of the National Internal Revenue Code and Section 145 as prescribed under Sections 1 and 2 of R.A. 1435. No pronouncement as to costs. SO ORDERED. Quezon City, Metro Manila, 2 August 1994. l. GRUBA Judge .: ; ~ WE CONCUR: (~ ) 0 1-.- CJl.D.~. ~ ACOSTA P esiding Judge I I 63 7

I>I�:C (~:; UlN - r.. T. A. CA~it-: Nil. :-J:1:14 - lb - This is to certify that the above decision was reached after due consul tat ion among the members of the Court of Tax Appeals in accordance with Section 13, Article VIII of the Constitution. ~r2'~ ERNESTO D. ACOSTA Presiding Judge Court ox Tax Appeals ,, 638