CTA Case No. 1347 (Decision)

Republic COURT O G Manilo the TAX Philippines APPEALS

1 MANILA SLECTRIC COMPANY Petitioner. X

- Versus C.Y.A.CASE NO.1347

CUSTOMS ACTINS COMMISSIONER OF Respondent.

DECISIO

This is an appeai from the decision of the res-

pondent Commissfener of Custems denying the claim of

the petitioner for rofund of the sum of l,158.C0 a

custcms duty on a shipment of 34 hexes of sterago bet-

tery with acid for use in petitioner's transforsers.

Petiticner clains exemption frem tho payment ef

customs duty on said hntterles under Paragraph 9. Part

Two. of ita franchise,which reads ms follows

insulators . machinery and personai prep- consideration of Part Two of the fran- to buiid and maintain in tho City of cenveying and furnishing of electric cur rent fer light. heat, and power. and to pay to the'City of Haniia two and one- tum of ths gross earnings racoived from percentage shall be due and payable at Orty as othex persons aro or may bo hereafter required by law to pay. chiso herein qranted. te wit, tha right Maniln and its suhurbs a plnnt fer the charge fer the sane, haif per centum of the groas'earnings ro- ceived"from its husiness under this fran- the business of tho line to Malabon shall be paid to tho Province of Rizal. liablo to pay the sam taxes upon its real estato, buildings, plant (net in- cluding peles, wiros. transforaera, and chise in tho city and its suburhs pRCVIDED. That two ond one-half per con- Per. 9.The grantoe shali be the grantee shall I Said

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CTA CAGENO DECISIN 1347

monts the grantee is hereby expressiy the +imes stated in paragraph aine- audit, like that providod in paraqraph tean of Part Cne hofoof. and aftor an twenty oi Part One horocf, ani shall he ia lieu of ali taxes and assessments of whataouvar nature. and by whstseevar authority upon the privileges. garnings, transformers. and 'insulatcre of the grantee. frem which tnxes and assass- inecns, oxsapted. "naketl. Tranchise.and polos, wires. seopp.25.26c.t.records.) (Psr.6.Petitin: Par. l.

The franchise of petitiener provides fer its exemption from all taxes and agseasmaents of mhatso-

ever nature, and hy whatsoever authority on its trans- formers. It is alleged that the oaid atorage batter-

Jos with acii are essentiol and indispensable parts

ef petit onar's diatribution transformers, and fer

this reason they aro exemot from all taxes. including

customs duties. On the other hand. rospondont clains

that stornge batteries are nct transfoxaere; hence.

the exemptien prcvisien of its franthise does not

apply.

We oyree with rospondent. The franchise of

petitiener exemots it frem ll taxes on its trans-

fosmors. Storage batteries are no transfocners.

It is tri that storage batteries mru essential for

the operetien of tranafemere. hut this' dees not

make the exemptien provision opplicetle te trensfora-

ers also appliceble to atorage batteries. Tires

ar ossential for the operation of sn automohile. However, whore automobilo tires re Smported indeend

2 05

C.T..CASE NO.1347 DECISION

ontly of an autenohilo, they cannot be taxed at the

same rato ss an autcnetils, unleas expressly se provid- od by law.J

The decision appealod from beinq in accordance

with law, tha same is hereby affirued. with costs

against petitioner.

SO ORDERED.

Manila, August 10, 1964.

0 RONAN M. UMALI Aoscciate Judge 82

WE GONCUR

Presiling Judge ARIAND N T TC

CU MALaP Zssociste Judge ZHeiND

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