LA SUERTE CIGAR AND CIGARETTE FACTORY, et al. vs. with principal office at ham, et al.

REPUBLIC GF THE PHILTPPINES

COURT GF TAX APPEALS

QUEZON CITy

LA SUERTE CIGAR AND CIGARETTE

FACTORY, (I[Ne.,

Petitioner,

C.TLA. CASE HO. S466

COMMISSIONER Of INTERNAL ALYVERNUE , Pramulgated:

—s

Spend fie

atieyediy fave been e@rpoeneousty paid by the petitioner on

iia bulk purchases of stemined-ieaf tobaccea from foreign

Popa aintubachur sta.

seppor ation cduly organized and

ex doting oeler Fall ipp ine favs with principal office at

ham, i, Weal Serpe boe Road, Faranague, Metro Manila. ih

iS ehyag ae pfs importation ane Peual purchase af

Si epined leaf towacue which it Uses AS & raw material tn

the precuetion and tanufacture ef eigar and cigarettes.

ort

P

ma,

ve

1

r

hmpte.

peed Phe month ee Marah Pear petitioner ailegedty

bedaw fished amounts of

Spe ibio tavres oi petlitioner ss bulk purchases of stemmed

reas

beat toebaoan Pram fopeign tobaceea manufacturers, as

95 2044548 15

GS 2044545 QO0

95 2O4abag 7S

ig

oft

ig

AO

wo

Op ~) Ow

co

a

Wo

it

oe

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foaee and Oetober 2, 1996,

petitioned Fliedowpatben claims for pefuncd and an amended

rs

ae”

.

~

—~

‘

oe

=

&

oevering the pericad

Oo tober THI up ta May feoh in the aggregate sum of

PT,951,751.68 : Petitiones therein that the

collection unde fer t4% (bb) of the Tax Code of the

ax OH ales of stemmed leaf tobacen

¢

ram

WAS erponeakS Aids ay fide sale are

=

a | because Suen

>. etipt Prod

op Se Lax when nade ty a tebacce

manuractkui er Wigorecily ao ahathed if aocardanee with

Section tery of the Tax Cede.

a

te subject stemmed leaf tobacce tea

exulsea vax; thel the payment of speeifie tax on stemmed

Sou AMGun tS .o duoubie taxation because exoise

tau: iS aga@in peril oan tne Pinished cigarette products;

path 144 ae? the Tax Code $3 & general provision

3 Weans “Aubiiai Payment” of Bureau of

1

1

DEC ES TON

aA oor oa

Hot @bpply Lo stemmed leaf tobacea,

¥ wWanufactured tobacco, ft|ike stemmed

at, iG fe einpe From specif ie tan under Revenue

a

réeygudations We. FY 87a; that

be)

a

am

ro

8

us

wu

a

ol

G

or

5

oe

ce

Pad

Suppor ks pis i

hebagwe Aw ity Lhe natee oof Hp. Lorenzo S&S. Barredo, then

Shief oof the Pnspeotion Service of respondent’ s

alated th his book enbtptbed

, PRibtppine Tobacece

fue oat Arhicles Subject

3" that sate of Stemmed teaf tLobacee in bulk Frem one

matufactur ei Lo anmebher $8 exempt from tax, Hence, can he

withelrawn From tne pidsce of production or customs custody

{fh

eit tn tae, that even if itt

uP fyihally pia@bie, Gt CAN ft Ponger be held -Liablte for

Lhe payment of ex

af Che tolaece

re

are

r

Lhe trarnktifacturcei ur prottucer before

Pemoaws

oe

-

i,

gy

~

i,

pace

c

o

pole

if

~~

pom fhe place of production, it

aflegedtly Was ia forger the owner hor the existi

DOS OP bie Same; aga Paéetiy, that eyen assuming

Was carrect, the

WAS Mepeihe rroneous.

e

Pati iionesr Aver Ss ,however, that up to the Filing of

rt been able to aet

be phatdant PeLitioar, Pespandent ha

pie cent Abpea, ley is

fox

Slop the purring af the peremplory period uf two-years

4

a

witha whdody has Pile a judied=sl Soya din Foy roa fara as

of the Tae Code, as amended.

its etanee @ que. On

cr

his Answer he

Ts

ot

Pa

Mog

cys

Lubaced fs

stemmed Jeaf

prep

f

bs

mi &

oP of the NIRC, as

“wiuita) ay Reve

t

he

aad

a3,

Daa F

PRP CET

may

aw waters without

tax only | the sate

mittee directly ts

poner oF

Cigar &

Ce SB107,

fnternal

Tabacos,

1996)

section

applies only te local sates ef

(fomiss

Deoenbet

A

ti

Pur therars

Peba@eco and aot La imoortbatians

Phyo sing

tems)

COHLEG |

es re ee |

the

henna

ane <

4

{4

ree £6

ri }owed

‘Pe

and

ted

Pod |

it

(ad

f aw

G4

manufacture

an

L

of which

{

tb, This

of tower

slemmec

Waterial

garette.

1

t

a Sterte

ap. No,

ar te,

3

r iz

without

OMeais,

1

“+

AW , said

pd

iy

ght that

. «£88,

-einmecd beat

abroad.

wAPOing.

Lilener, as

aaindy fbiwe

seal offer

it respective

THES jesuc canfronting Us is whether or

2

petit dponear is tegally ahu faetualty entitled to ites c

why

- = a vy

peape » gunmen batbion ud rhs partige, the

proavydigione of laws !

=

%

ae

the mathei. Some of the pertinent e@escerpts of CA-G.R.,

Mod. $6279 had a S oehri pb bead Lowmmiecscioner of later

ievewus vg. For ilies Tobacce

Jahan y SO, 998, wh pan ps amp licgabily si in fa

i and Che dice isib bones faeised by the par

hepein, flog bereby j eu if answeil ie)

paoteaticdis ius Paieed by berein parties, thus:

trade.

piavided if

caxation

material

es oh the

must be

law. it

-ufe@-making

ger the fast

waa dt oe

GARTOL

body.

peal ay

at Appeals has already snooker

alian, proamutigated

as

ct

bain

the

x

ay

=

ba)