EN BANC
G.R. No. 125346, November 11, 2014
LA SUERTE CIGAR & CIGARETTE FACTORY, Petitioner, v. COURT OF APPEALS AND COMMISSIONER OF INTERNAL REVENUE, Respondents.
G.R. Nos. 136328-29
COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. FORTUNE TOBACCO CORPORATION, Respondent.
[G.R. No. 144942]
COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. LA SUERTE CIGAR & CIGARETTE FACTORY, Respondent.
[G.R. No. 148605]
STERLING TOBACCO CORPORATION, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.
[G.R. No. 158197]
LA SUERTE CIGAR & CIGARETTE FACTORY, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.
[G.R. No. 165499]
LA SUERTE CIGAR & CIGARETTE FACTORY, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.
D E C I S I O N
LEONEN, J.:
Once cured, the leaves are sorted into grades based on size, color, and quality, and packed in standard bales.35 The bales are then moved to accredited trading centers where they are purchased by leaf buyers such as wholesale tobacco dealers and exporters or cigarette manufacturing companies.36chanrobleslaw
1) Air-curing (for Burley and Native tobacco) “is carried out by hanging the tobacco in well-ventilated barns, where the tobacco is allowed to dry over a period of 4 to 8 weeks. Air-cured tobacco is generally low in sugar content, which gives the tobacco smoke a light, smooth, semi-sweet flavor. These tobacco leaves usually have a high nicotine content[;]”33 and 2) Flue-curing (for Virginia tobacco) process “starts by the sticking of tobacco leaves, which are then hung from tier-poles in curing barns. The procedure will generally take about a week. Flue-cured tobacco generally produces cigarette tobacco, which usually has a high content of sugar, with medium to high levels of nicotine.”34
SECTION 136. Specific Tax on Products of Tobacco. – On manufactured products of tobacco, except cigars, cigarettes, and tobacco specially prepared for chewing so as to be unsuitable for consumption in any other manner, but including all other tobacco twisted by hand or reduced into a condition to be consumed in any manner other than by the ordinary mode of drying and curing; and on all tobacco prepared or partially prepared for sale or consumption, even if prepared without the use of any machine or instrument and without being pressed or sweetened; and on all fine-cut shorts and refuse, scraps, clippings, cuttings, and sweepings of tobacco, there shall be collected on each kilogram, sixty centavos.Section 132 of the 1939 Code, however, by way of exception, provided that “stemmed leaf tobacco . . . may be sold in bulk as raw material by one manufacturer directly to another, under such conditions as may be prescribed in the regulations of the Department of Finance, without the prepayment of the tax.” Section 132 stated:
On tobacco specially prepared for chewing so as to be unsuitable for use in any other manner, on each kilogram, forty-eight centavos. (Emphasis supplied)
SECTION 132. Removal of Tobacco Products Without Pre-payment of Tax. – Products of tobacco entirely unfit for chewing or smoking may be removed free of tax for agricultural or industrial use, under such conditions as may be prescribed in the regulations of the Department of Finance; and stemmed leaf tobacco, fine-cut shorts, the refuse of fine-cut chewing tobacco, refuse, scraps, cuttings, clippings and sweepings of tobacco may be sold in bulk as raw material by one manufacturer directly to another, under such conditions as may be prescribed in the regulations of the Department of Finance, without the pre-payment of the tax.On September 29, 1954, upon the recommendation of then Acting Collector of Internal Revenue J. Antonio Araneta, the Department of Finance promulgated Revenue Regulations No. V-39 (RR No. V-39), or “The Tobacco Products Regulations,” relative to “the enforcement of the provisions of Title IV of the [1939 Tax Code] in so far as they affect the manufacture or importation of, and the collection and payment of the specific tax on, manufactured tobacco or products of tobacco.”50 Section 20(a) of RR No. V-39, which lays the rules for tax exemption on tobacco products, states:
"Stemmed leaf tobacco," as herein used means leaf tobacco which has had the stem or midrib removed. The term does not include broken leaf tobacco. (Emphasis supplied)
SECTION 20. Exemption from tax of tobacco products intended for agricultural or industrial purposes. — (a) Sale of stemmed leaf tobacco, etc., by one factory to another. — Subject to the limitations herein established, products of tobacco entirely unfit for chewing or smoking may be removed free of tax for agricultural or industrial use; and stemmed leaf tobacco, fine-cut shorts, the refuse of fine-cut chewing tobacco, refuse, scraps, cuttings, clippings, and sweepings of tobacco may be sold in bulk as raw materials by one manufacturer directly to another without the prepayment of specific tax.Sections 10 and 11 of RR No. V-39 enumerate and describe the record books to be kept and used by manufacturers of tobacco products, viz:
Stemmed leaf tobacco, fine-cut shorts, the refuse of fine-cut chewing tobacco, scraps, cuttings, clippings, and sweeping of leaf tobacco or partially manufactured tobacco or other refuse of tobacco may be transferred from one factory to another under an official L-7 invoice on which shall be entered the exact weight of the tobacco at the time of its removal, and entry shall be made in the L-7 register in the place provided on the page of removals. Corresponding debit entry will be made in the L-7 register book of the factory receiving the tobacco under heading “Refuse, etc., received from other factory,” showing the date of receipt, assessment and invoice numbers, name and address of the consignor, form in which received, and the weight of the tobacco. This paragraph should not, however, be construed to permit the transfer of materials unsuitable for the manufacture of tobacco products from one factory to another. (Emphasis supplied)
SECTION 10. (a) Register, auxiliary, and stamps requisition books for manufacturers. — The Collector of Internal Revenue shall from time to time supply provincial revenue agents or the Chief of the Tobacco Tax Section with the necessary number of manufacturers official register books and official auxiliary register books as may be required in each locality by manufacturers of tobacco products. Whenever any manufacturer shall have qualified himself as such by executing a proper bond, registering his factory, and paying the privilege tax and shall have complied with all the requirements of engaging in such business contained in the National Internal Revenue Code and in these regulations, the internal revenue agent within whose district the factory is located shall deliver to said manufacturer the necessary official register books and auxiliary register books. These books consist of the following:chanroblesvirtuallawlibrarySection 2 of RR No. V-39 broadly defined “manufactured products of tobacco” and “manufacturer of tobacco products” as follows:
B.I.R. No. 31.09—Official Register Book, A-3 for manufacturers of chewing and smoking tobacco.
B.I.R. No. 31.10—Manufactured tobacco (Transcript sheet of above).
B.I.R. No. 31.18—Official Register Book, A-4, for manufacturers of cigar.
B.I.R. No. 31.19—(Transcript sheet of the above).
B.I.R. No. 31.27—Official Register Book, A-5, for Manufacturers of cigarettes.
B.I.R. No. 31.28—(Transcript sheet of above).
B.I.R. No. 31.01—Official Register Book, L-7, record of raw materials for manufacturers of any class of tobacco products.
B.I.R. No. 31.02—(Transcript sheet of above)[.]
B.I.R. No. 31.46—Auxiliary Register Book, L-7-1/2, bale book, for manufacturers of any class of tobacco products.
B.I.R. No. 31.47—(Transcript sheet of above).
B.I.R. No. 31.12—Stamp requisition book, for manufacturers of manufactured tobacco.
B.I.R. No. 31.21—Stamp requisition book, for manufacturers of cigars.
B.I.R. No. 31.30—Stamp requisition book, for manufacturers of cigarettes.
B.I.R. No. 31.05—L-7 Official Invoice Book for, use in connection with L-7 register book.
B.I.R. No. 31.05—L-7-1/2 Official Invoice Book, for use in connection with L-7-1/2 bale book.
(b) General nature of official register and auxiliary register books. — The L-7 official register book is the record of all raw materials used in the manufacture of tobacco products of all description in the factory. It is the primary record of the internal operations of the factory. It shows the raw materials used in the manufacture and the articles actually manufactured or produced. The Schedule A register books are the record of the articles actually manufactured or produced, and transferred from the credit side of the official register book, L-7. They show the amount of taxes paid and the name of the person to whom the finished products is consigned or sold when leaving the factory. The bale book[,] L-7-1/2, is an auxiliary to the L-7 official register book.
All official register books and other official records herein required of manufacturers shall be kept in the factory premises, or in the factory warehouse, in the case of bale books, and open to inspection by any internal revenue officer at all times of the day or night.
. . . .
SECTION 11. Entries to be made in the official register and auxiliary register books; monthly transcripts. — (a) Official bale book (L-7-1/2). All leaf tobacco received in any factory or factory warehouse shall be debited, and any removal of tobacco from the factory shall be credited in the official bale book; except cuttings, clippings, sweepings, and other partially manufactured tobacco, which shall be credited in the L-7 register book.
The Collector of Internal Revenue may in his discretion waive the requirements of keeping an official bale book by small factories.
(b) The Official Register Book (L-7). — One L-7 books shall suffice for each manufacturer of tobacco products, regardless of the classes of tobacco manufactured by him. All loose leaf tobacco received in the factory proper and all bales of leaf tobacco which are opened in the factory for use in the manufacture of tobacco products shall be entered in the L-7 official register book under the heading “Received from Dealers” at the net weights. In the column headed “Name[”] and “Address” shall be shown the words “Transferred from tobacco factory warehouse”. All leaf tobacco received into a factory must be entered in the official bale book pertaining to the factory and bales of leaf tobacco shall not be taken up in the L-7 register book until said bales are transferred for use and credited in the official bale book. While leaf tobacco must be taken in the official bale book, this is done for statistical purposes only. As soon as it enters the factory for use in manufacture it should be taken up in the L-7 register book and credited in the official bale book.
All removals of waste of tobacco, whether transferred to other factories, removed for agricultural or industrial purposes, or destroyed on the premises or elsewhere, shall be entered in the official register book, L-7, under the heading “Raw Materials Removed”, showing all information required therein. (Emphasis supplied)
Section 2. Definition of terms. — When used in there [sic] regulations, the following terms shall be given the interpretations indicated in their respective definitions given below, except where the context indicates otherwise:chanroblesvirtuallawlibraryIn 1967, the Secretary of Finance promulgated Revenue Regulations No. 17-67 (RR No. 17-67), as amended,52 or the “Tobacco Revenue Regulations on Leaf, Scrap, Other Partially Manufactured Tobacco and Other Tobacco Products; Grading, Classification, Inspection, Shipments, Exportation, Importation and the Manufacturers thereof under the provisions of Act No. 2613, as amended.” Section 2(i) of RR No. 17-67 defined a “manufacturer of tobacco” and included in the definition one who prepares partially manufactured tobacco. Section 2(m) defined “partially manufactured tobacco” as including stemmed leaf tobacco. Thus, Sections 2(i) and (m) read:
(a) “Manufactured products of tobacco” shall include cigars, cigarettes, smoking tobacco, chewing, snuff, and all other forms of manufactured and partially manufactured tobacco, as defined in section 194 (M)51 of the National Internal Revenue Code.
(b) “Manufacturer of tobacco products” shall include all persons engaged in the manufacture of any of the forms of tobacco mentioned in the next preceding paragraph.
Section 3 of RR No. 17-67 classified entities that dealt with tobacco according to the type of permit that the Bureau of Internal Revenue issued to each entity. Under this classification, wholesale leaf tobacco dealers were considered L-3 permittees. Those (referring to wholesale leaf tobacco dealers) that reprocess partially manufactured tobacco for export, for themselves, and/or for other L-6 or L-7 permittees were considered L-6 permittees. Manufacturers of tobacco products such as cigarette manufacturers were considered L-7 permittees. Section 3 of RR No. 17-67 reads:(m) “Partially manufactured tobacco” — Includes:
(i) "Manufacturer of tobacco" — Includes every person whose business it is to manufacture tobacco o[r] snuff or who employs others to manufacture tobacco or snuff, whether such manufacture be by cutting, pressing (not baling), grinding, or rubbing (grating) any raw or leaf tobacco, or otherwise preparing raw or leaf tobacco, or manufactured or partially manufactured tobacco and snuff, or putting up for consumption scraps, refuse, or stems of tobacco resulting from any process of handling tobacco stems, scraps, clippings, or waste by sifting, twisting, screening or by any other process.
. . . .
(1) “Stemmed leaf” — handstripped tobacco, clean, good, partially broken leaf only, free from mold and dust. (2) “Long-filler” — handstripped tobacco of good, long pieces of broken leaf usable as filler for cigars without further preparation, and free from mold, dust stems and cigar cuttings. (3) “Short-filler” — handstripped or machine-stripped tobacco, clean, good, short pieces of broken leaf, which will not pass through a screen of two inches (2") mesh. (4) “Cigar-cuttings” — clean cuttings or clippings from cigars, unsized with any other form of tobacco. (5) “Machine-scrap tobacco” — machine-threshed, clean, good tobacco, not included in any of the above terms, usable in the manufacture of tobacco products. (6) “Stems” — midribs of leaf tobacco removed from the whole leaf or broken leaf either by hand or machine. (7) “Waste tobacco” — denatured tobacco; powder or dust, refuse, unfit for human consumption; discarded materials in the manufacture of tobacco products, which may include stems.
La Suerte contends that on December 12, 1972, then Internal Revenue Commissioner Misael P. Vera issued a ruling which declared that:
(a) L-3 — Wholesale leaf tobacco dealer. (b) L-3F — Wholesale leaf tobacco dealer. Issued only in favor of Farmer's Cooperative Marketing Association (FaCoMas) duly organized in accordance with law. [This function relative to tobacco trading was transferred to the Philippine Virginia Tobacco Administration (PVTA) under Section 15 of Republic Act No. 2265]. (c) L-3R — Wholesale leaf tobacco dealers. Issued only in favor of persons or entities having fully equipped Redrying Plants. (d) L-3-¼ — Buyers for wholesale leaf tobacco dealers. (e) L-4 — Wholesale leaf tobacco dealers. Issued only in favor of persons or entities having flue-curing barns, who may purchase or receive green Virginia leaf tobacco from bona fide tobacco planters only, or handle green leaf of their own production, which tobacco shall be sold or transferred only to holders of L-3 and L-3R permits after flue-curing the tobacco. (f) L-5 — Tobacco planters selling to consumers part or the whole of their tobacco production. (g) L-6 — Wholesale leaf tobacco dealers who, exclusively for export, except as otherwise provided for in these regulations, perform the following functions: (1) Handstripped and/or thresh whole leaf tobacco for themselves or for other L-6 or L-7 permittees; (2) Re-process partially manufactured tobacco for themselves, or for other L-6 or L-7 permittees; (3) Sell their partially manufactured tobacco to other L-6 permittees. (h) L-7 — Manufacturers of tobacco products. [L-7 ½ designates an auxiliary registered book (bale books), for manufacturers of tobacco products.] (i) B-14 — Wholesale leaf tobacco dealers (Privilege tax receipt) (j) B-14 (a) — Retail leaf tobacco dealers (Privilege tax receipt)
. . . . The subsequent sale or transfer by the L-6/L-3R permittee for export or to an L-7-1/2 for use in the manufacture of cigars or cigarettes may also be allowed without the prepayment of the specific tax.53Almost 40 years from the enactment of the 1939 Tax Code, Presidential Decree No. 1158-A, otherwise known as the “National Internal Revenue Code of 1977,” was promulgated on June 3, 1977, to consolidate and integrate the various tax laws which have so far amended or repealed the provisions found in the 1939 Tax Code. Section 132 was renumbered as Section 144, and Section 136 as Section 148. Sections 144 and 148, read:
SEC. 144. Removal of tobacco products without prepayment of tax.—Products of tobacco entirely unfit for chewing or smoking may be removed free of tax for agricultural or industrial use, under such conditions as may be prescribed in the regulations of the Department of Finance, and stemmed leaf tobacco, fine-cut shorts, the refuse of fine-cuts chewing tobacco, re-refuse, scraps, cuttings, clippings, stems or midribs, and sweepings of tobacco may be sold in bulk as raw material by one manufacturer directly to another, under such conditions as may be prescribed in the regulations of the Department of Finance, without the prepayment of the tax.Sections 144 and 148 were subsequently renumbered as Sections 120 and 125 respectively under Presidential Decree No. 1994,54 which took effect on January 1, 1986 (1986 Tax Code); then as Sections 137 and 141 under Executive Order No. 273;55 and finally as Sections 140 and 144 under Republic Act No. 8424 or the “Tax Reform Act of 1997.” However, the provisions remained basically unchanged.
“Stemmed leaf tobacco”, as herein used means leaf tobacco which has had the stem or midrib removed. The term does not include broken leaf tobacco.
. . . .
SEC. 148. Specific tax on products of tobacco.—On manufactured products of tobacco, except cigars, cigarettes, and tobacco specially prepared for chewing so as to be unsuitable for consumption in any other manner, but including all other tobacco twisted by hand or reduced into a condition to be consumed in any manner other than by the ordinary mode of drying and curing; and on all tobacco prepared or partially prepared for sale or consumption, even if prepared without the use of any machine or instrument and without being pressed or sweetened; and on all fine-cut shorts and refuse, scraps, clippings, cuttings, stems, and sweepings of tobacco, there shall be collected on each kilogram, seventy-five centavos: Provided, however, That fine-cut shorts and refuse, scraps, clippings, cuttings, stems and sweepings of tobacco resulting from the handling, or stripping of whole leaf tobacco may be transferred, disposed of, or otherwise sold, without prepayment of the specific tax herein provided for under such conditions as may be prescribed in the regulations promulgated by the Secretary of Finance upon recommendation of the Commissioner if the same are to be exported or to be used in the manufacture of other tobacco products on which the specific tax will eventually be paid on the finished product.
On tobacco specially prepared for chewing so as to be unsuitable for use in any other manner, on each kilogram, sixty centavos.
SEC. 137. Removal of tobacco products without prepayment of tax. – Products of tobacco entirely unfit for chewing or smoking may be removed free of tax for agricultural or industrial use, under such conditions as may be prescribed in the regulations of the Ministry of Finance. Stemmed leaf tobacco, fine-cut shorts, the refuse of fine-cut chewing tobacco, scraps, cuttings, clippings, stems or midribs, and sweepings of tobacco may be sold in bulk as raw material by one manufacturer directly to another, without payment of the tax under such conditions as may be prescribed in the regulations of the Ministry of Finance.Parenthetically, the present provisions explicitly state the following:
‘Stemmed leaf tobacco,' as herein used, means leaf tobacco which has had the stem or midrib removed. The term does not include broken leaf tobacco.
. . . .
SEC. 141. Tobacco Products. – There shall be collected a tax of seventy-five centavos on each kilogram of the following products of tobacco:(a) tobacco twisted by hand or reduced into a condition to be consumed in any manner other than the ordinary mode of drying and curing;Fine-cut shorts and refuse, scraps, clippings, cuttings, stems and sweepings of tobacco resulting from the handling or stripping of whole leaf tobacco may be transferred, disposed of, or otherwise sold, without prepayment of the specific tax herein provided for under such conditions as may be prescribed in the regulations promulgated by the Ministry of Finance upon recommendation of the Commissioner, if the same are to be exported or to be used in the manufacture of other tobacco products on which the excise tax will eventually be paid on the finished product.
(b) tobacco prepared or partially prepared with or without the use of any machine or instruments or without being pressed or sweetened; and
(c) fine-cut shorts and refuse, scraps, clippings, cuttings, stems and sweepings of tobacco.
On tobacco specially prepared for chewing so as to be unsuitable for use in any other manner, on each kilogram, sixty centavos.
Stemmed leaf tobacco, tobacco prepared or partially prepared with or without the use of any machine or instrument or without being pressed or sweetened, fine-cut shorts and refuse, scraps, clippings, cuttings, stems, midribs, and sweepings of tobacco resulting from the handling or stripping of whole leaf tobacco shall be transferred, disposed of, or otherwise sold, without any prepayment of the excise tax . . . if the same are to be exported or to be used in the manufacture of cigars, cigarettes, or other tobacco products on which the excise tax will eventually be paid on the finished product, under such conditions as may be prescribed in the rules and regulations promulgated by the Secretary of Finance, upon recommendation of the Commissioner.56
Sometime in June, 1989, a team of examiners from the Bureau of Internal Revenue, led by Crisanto G. Luna, Revenue Officer III of the Field Operation Division of the Excise Tax Service, conducted an examination of the books of La Suerte by virtue of a letter of authority issued by then Commissioner Jose U. Ong.The Commissioner appealed the Court of Tax Appeals’ decision before the Court of Appeals. On December 29, 1995, the Court of Appeals Sixth Division ruled against La Suerte and found that RR No. V-39 limits the tax exemption on transfers of stemmed leaf tobacco to transfers between two L-7 permittees.58 The Court of Appeals ruled as follows:
On January 3, 1990, La Suerte received a letter from then Commissioner Jose U. Ong demanding the payment of P34,934,827.67 as deficiency excise tax on La Suerte’s entire importation and local purchase of stemmed leaf tobacco for the period covering January 1, 1986 to June 30, 1989.
On January 12, 1990, La Suerte . . . protest[ed] the excise tax deficiency assessment . . . stressing that the BIR assessment was based solely on Section 141(b) of the Tax Code without, however, applying Section 137 thereof, the more specific provision, which expressly allows the sale of stemmed leaf tobacco as raw material by one manufacturer directly to another without payment of the excise tax. However, in a letter, dated August 31, 1990, Commissioner Jose U. Ong denied La Suerte’s protest, insisting that stemmed leaf tobacco is subject to excise tax “unless there is an express grant of exemption from [the] payment of tax.”ChanRoblesVirtualawlibrary
In a letter dated October 17, 1990, Commissioner Ong reiterated his demand for the payment of the alleged deficiency excise taxes due from La Suerte, to wit:“Please be informed that in an investigation conducted by this Office, it was ascertained that you incurred a deficiency specific tax on your importation and local purchase of stemmed leaf tobacco covering the period from January 1, 1986 to June 30, 1989 in the total amount of P34,904,247.00 computed as follows:chanroblesvirtuallawlibraryOn December 6, 1990, La Suerte filed with the Court of Tax Appeals a Petition for Review seeking for the annulment of the assessments. . .
STEMMED–LEAF TOBACCO
Imported 13,918,465 kls. x P0.75 P10,438,848.00 Local 32,620,532 kls. x 0.75 24,465,399.00
Total Amount Due (Basic Tax) - - - - - - - - - - - -P34,904,247.00
. . . .” (page 99, Rollo)
. . . On July 13, 1995, the Tax Court rendered [its] Decision, the dispositive portion of which reads[:]“WHEREFORE, in all the foregoing, the assessment of alleged deficiency specific tax in the amount of P34,904,247.00 issued by the Respondent is hereby CANCELLED for lack of merit.
SO ORDERED.”57
IN THE LIGHT OF ALL THE FOREGOING, the Decision appealed from is hereby REVERSED and SET ASIDE. Respondent is ordered to pay the petitioner Commissioner of Internal Revenue the amount of P34,904,247.00 as deficiency specific tax on its importations and local purchases of stemmed leaf tobacco and its sale of stemmed leaf tobacco to Associated Anglo-American Tobacco Corporation covering the period from January 1, 1986 to June 30, 1989, plus 25% surcharge for late payment and 20% interest per annum from October 17, 1990 until fully paid pursuant to sections 248 and 249 of the Tax Code.La Suerte filed a motion for reconsideration, which was denied by the Court of Appeals in its June 7, 1996 resolution.60chanrobleslaw
SO ORDERED.59
The present controversy ruminate upon the singular issue of whether or not Revenue Regulation 1767 [sic] issued by petitioner, in relation to Section 137 of the Internal Revenue Code in the imposition of a tax on stemmed-leaf tobacco, deviated from the tax code. This question basically inquires then into whether or not the revenue regulation has exceeded, on constitutional grounds, the allowable limits of legislative delegation.This court resolved to reinstate84 and give due course85 to the Commissioner’s petition.
Aware that the dismissal of the petition could have lasting effect on government tax revenues, the lifeblood of the state, the Court heeds the plea of petitioner for a chance to prosecute its case.83 (Emphasis and underscoring supplied)
WHEREFORE, premises considered, the Decision of the Court of Tax Appeals in C.T.A. Case No. 4532 is hereby REVERSED and SET ASIDE, and the respondent is ORDERED to pay to the public petitioner the amount of P5,187,432.00 as deficiency specific tax on its imported and locally purchased stemmed leaf tobacco from November 1986 to June 24, 1989, plus 25% surcharge on 5,187,432.00, and 20% interest per annum on the total amount due from December 07, 1990 until full payment, pursuant to Sections 248-49 of the Tax Code.Sterling filed a motion for reconsideration,92 which was denied by the Court of Appeals in its June 19, 2001 resolution.
SO ORDERED.91
WHEREFORE, in view of the foregoing, We find the petition for review meritorious and the same is hereby GRANTED. Respondent’s decision dated April 29, 1991 is hereby set aside and the formal assessment for the deficiency specific tax in the sum of P11,575,275.25 subject of the respondent’s letter, dated January 30, 1991, is deemed cancelled.The Commissioner filed a motion for reconsideration that was denied by the Court of Tax Appeals in its April 5, 1995 resolution.103chanrobleslaw
No pronouncement as to costs of suit.
SO ORDERED.102
G.R. No. 165499
- THE HONORABLE COURT OF APPEALS ERRED WHEN IT HELD THAT SECTION 20(A) OF REV. REGS. NO. V-39 LIMITED THE CLASS OF MANUFACTURERS WHOSE SALES OF STEMMED LEAF TOBACCO WERE EXEMPT FROM PRE-PAYMENT OF SPECIFIC TAX.
- EVEN IF SEC. 3 OF RR NO. 17-67 HAD BEEN WAS [sic] INTENDED TO LIMIT MANUFACTURERS EXEMPT FROM PREPAYMENT OF SPECIFIC TAX, THIS WOULD AMOUNT TO UNLAWFUL DELEGATION OF LEGISLATIVE POWER.
- RR NO. 17-67 WAS NEITHER ISSUED TO AMEND RR NO. V-39 NOR TO AMEND THE TAX CODE, BUT SOLELY TO IMPLEMENT ACT NO. 2613, AS AMENDED, WHICH WAS ENACTED IN 1916 AND HAD ABSOLUTELY NOTHING TO DO WITH TAXES.
- SECTION 2(H) OF RR NO. 17-67 EXCEEDED THE CONSTITUTIONAL LIMITS ON THE DELEGATION OF LEGISLATIVE POWER.
- SECTION 3(M) OF RR NO. 17-67 AS INTERPRETED BY COMMISSIONER EXCEEDED ALLOWABLE LIMITS ON DELEGATION OF LEGISLATIVE POWER.
- THE HONORABLE COURT OF APPEALS ERRED IN APPLYING SECTION 20(A) OF RR NO. V-39 TO LA SUERTE’S IMPORTS OF STEMMED LEAF TOBACCO, FOR THE APPLICABLE PROVISION IS CHAPTER V OF RR NO. V-39.
- THE COMMISSIONER’S PRESENT INTERPRETATION OF SECTIONS 2(M)(1) AND 3(H) OF RR NO. 17-67, WAS NOT THE INTERPRETATION GIVEN TO THOSE SECTIONS BY ITS FRAMERS, AS SHOWN BY THE LONG ADMINISTRATIVE PRACTICE AFTER THE ISSUANCE OF RR NO. 17-67 AND THE BIR RULING DATED DECEMBER 12, 1972, WHICH CONFIRMED THE TAX-FREE TRANSFER OF STEMMED- LEAF TOBACCO.108
On various dates in March 1995, the Commissioner of Internal Revenue . . . collected from La Suerte the aggregate amount of THREE HUNDRED TWENTY-FIVE THOUSAND FOUR HUNDRED TEN PESOS (P325,410.00) for specific taxes on La Suerte’s bulk purchases of stemmed-leaf tobacco from foreign tobacco manufacturers. La Suerte paid the said amount under protest.On September 23, 1998, the Court of Tax Appeals rendered judgment granting the petition for review and ordering the Commissioner to refund the amount of P325,410.00 to La Suerte.110 The Commissioner filed a motion for reconsideration, but this was denied by the Court of Tax Appeals on December 15, 1998.111chanrobleslaw
. . . .
On September 27, 1996 and October 2, 1996, La Suerte instituted with the Commissioner of Internal Revenue . . . and with Revenue District No. 52, a claim for refund of specific taxes said to have been erroneously paid on its importations of stemmed-leaf tobacco for the period of November 1994 up to May 1995, including the amount of Three Hundred Twenty Five Thousand Four Hundred Ten Pesos (P325,410.00). . . .
Inasmuch as its claim for refund was not acted upon by petitioner and in order to toll the running of the two-year reglementary period within which to file a judicial claim for such refund as provided under Section 229 of the 1997 National Internal Revenue Code, as amended, La Suerte filed on February 8, 1997 a petition for review with the CTA.109
SEC. 141. Tobacco Products. – There shall be collected a tax of seventy-five centavos on each kilogram of the following products of tobacco:chanroblesvirtuallawlibraryIt is evident that when tobacco is harvested and processed either by hand or by machine, all its products become subject to specific tax. Section 141 reveals the legislative policy to tax all forms of manufactured tobacco — in contrast to raw tobacco leaves — including tobacco refuse or all other tobacco which has been cut, split, twisted, or pressed and is capable of being smoked without further industrial processing.(a) tobacco twisted by hand or reduced into a condition to be consumed in any manner other than the ordinary mode of drying and curing;
(b) tobacco prepared or partially prepared with or without the use of any machine or instruments or without being pressed or sweetened; and
(c) fine-cut shorts and refuse, scraps, clippings, cuttings, stems and sweepings of tobacco.
Fine-cut shorts and refuse, scraps, clippings, cuttings, stems and sweepings of tobacco resulting from the handling or stripping of whole leaf tobacco may be transferred, disposed of, or otherwise sold, without prepayment of the specific tax herein provided for under such conditions as may be prescribed in the regulations promulgated by the Ministry of Finance upon recommendation of the Commissioner, if the same are to be exported or to be used in the manufacture of other tobacco products on which the excise tax will eventually be paid on the finished product.
On tobacco specially prepared for chewing so as to be unsuitable for use in any other manner, on each kilogram, sixty centavos. (Emphasis supplied)
(m) “Partially manufactured tobacco” — Includes:chanroblesvirtuallawlibraryInsisting on the inapplicability of RR No. 17-67, La Suerte points to the different definitions given to stemmed leaf tobacco by Section 2(m)(1) of RR No. 17-67 and Section 137. It argues that while RR No. 17-67 defines stemmed leaf tobacco as handstripped tobacco of clean, good, partially broken leaf only, free from mold and dust, Section 137 defines it as leaf tobacco which has had the stem or midrib removed. The term does not include broken leaf tobacco. We are not convinced.
(1) “Stemmed leaf” — handstripped tobacco, clean, good, partially broken leaf only, free from mold and dust. (2) “Long-filler” — handstripped tobacco of good, long pieces of broken leaf usable as filler for cigars without further preparation, and free from mold, dust stems and cigar cuttings. (3) “Short-filler” — handstripped or machine-stripped tobacco, clean, good, short pieces of broken leaf, which will not pass through a screen of two inches (2") mesh. (4) “Cigar-cuttings” — clean cuttings or clippings from cigars, unsized with any other form of tobacco. (5) “Machine-scrap tobacco” — machine-threshed, clean, good tobacco, not included in any of the above terms, usable in the manufacture of tobacco products. (6) “Stems” — midribs of leaf tobacco removed from the whole leaf or broken leaf either by hand or machine. (7) “Waste tobacco” — denatured tobacco; powder or dust, refuse, unfit for human consumption; discarded materials in the manufacture of tobacco products, which may include stems.
SEC. 137. Removal of tobacco products without prepayment of tax. – Products of tobacco entirely unfit for chewing or smoking may be removed free of tax for agricultural or industrial use, under such conditions as may be prescribed in the regulations of the Ministry of Finance. Stemmed leaf tobacco, fine-cut shorts, the refuse of fine-cut chewing tobacco, scraps, cuttings, clippings, stems or midribs, and sweepings of tobacco may be sold in bulk as raw material by one manufacturer directly to another, without payment of the tax under such conditions as may be prescribed in the regulations of the Ministry of Finance.Section 137 authorizes a tax exemption subject to the following: (1) that the stemmed leaf tobacco is sold in bulk as raw material by one manufacturer directly to another; and (2) that the sale or transfer has complied with the conditions prescribed by the Department of Finance.
‘Stemmed leaf tobacco,' as herein used, means leaf tobacco which has had the stem or midrib removed. The term does not include broken leaf tobacco. (Emphasis and underscoring supplied)
SECTION 20. Exemption from tax of tobacco products intended for agricultural or industrial purposes. — (a) Sale of stemmed leaf tobacco, etc., by one factory to another. — Subject to the limitations herein established, products of tobacco entirely unfit for chewing or smoking may be removed free of tax for agricultural or industrial use; and stemmed leaf tobacco, fine-cut shorts, the refuse of fine-cut chewing tobacco, refuse, scraps, cuttings, clippings, and sweepings of tobacco may be sold in bulk as raw materials by one manufacturer directly to another without the prepayment of the specific tax.The conditions under which stemmed leaf tobacco may be transferred from one factory to another without prepayment of specific tax are as follows:chanroblesvirtuallawlibrary
Stemmed leaf tobacco, fine-cut shorts, the refuse of fine-cut chewing tobacco, scraps, cuttings, clippings, and sweeping of leaf tobacco or partially manufactured tobacco or other refuse of tobacco may be transferred from one factory to another under an official L-7 invoice on which shall be entered the exact weight of the tobacco at the time of its removal, and entry shall be made in the L-7 register in the place provided on the page of removals. Corresponding debit entry will be made in the L-7 register book of the factory receiving the tobacco under heading “Refuse, etc., received from other factory,” showing the date of receipt, assessment and invoice numbers, name and address of the consignor, form in which received, and the net weight of the tobacco. This paragraph should not, however, be construed to permit the transfer of materials unsuitable for the manufacture of tobacco products from one factory to another. (Emphasis supplied)
(a) | The transfer shall be under an official L-7 invoice on which shall be entered the exact weight of the tobacco at the time of its removal; |
(b) | Entry shall be made in the L-7 register in the place provided on the page for removals; and |
(c) | Corresponding debit entry shall be made in the L-7 register book of the factory receiving the tobacco under the heading, “Refuse, etc., received from the other factory,” showing the date of receipt, assessment and invoice numbers, name and address of the consignor, form in which received, and the weight of the tobacco. |
[T]he exemption from specific tax of the sale of stemmed leaf tobacco as raw material by one L-7 directly to another L-7 is because such stemmed leaf tobacco has been subjected to specific tax when an L-7 manufacturer purchased the same from wholesale leaf tobacco dealers designated under Section 3, Chapter I, Revenue Regulations No. 17-67 (supra) as L-3, L-3F, L-3R, L-4, or L-6, the latter being also a stripper of leaf tobacco. These are the sources of stemmed leaf tobacco to be used as raw materials by an L-7 manufacturer which does not produce stemmed leaf tobacco. When an L-7 manufacturer sells the stemmed leaf tobacco purchased from the foregoing suppliers to another L-7 manufacturer as raw material, such sale is not subject to specific tax under Section 137 (now Section 140), as implemented by Section 20(a) of Revenue Regulations No. V-39.167There is no new product when stemmed leaf tobacco is transferred between two L-7 permit holders. Thus, there can be no excise tax that will attach. The regulation, therefore, is reasonable and does not create a new statutory right.
The latest in our jurisprudence indicates that delegation of legislative power has become the rule and its non-delegation the exception. The reason is the increasing complexity of modern life and many technical fields of governmental functions as in matters pertaining to tax exemptions. This is coupled by the growing inability of the legislature to cope directly with the many problems demanding its attention. The growth of society has ramified its activities and created peculiar and sophisticated problems that the legislature cannot be expected reasonably to comprehend. Specialization even in legislation has become necessary. To many of the problems attendant upon present day undertakings, the legislature may not have the competence, let alone the interest and the time, to provide the required direct and efficacious, not to say specific solutions.172Thus, rules and regulations implementing the law are designed to fill in the details or to make explicit what is general, which otherwise cannot all be incorporated in the provision of the law.173 Such rules and regulations, when promulgated in pursuance of the procedure or authority conferred upon the administrative agency by law,174 “deserve to be given weight and respect by the courts in view of the rule-making authority given to those who formulate them and their specific expertise in their respective fields.”175 To be valid, a revenue regulation must be within the scope of statutory authority or standard granted by the legislature. Specifically, the regulation must (1) be germane to the object and purpose of the law;176 (2) not contradict, but conform to, the standards the law prescribes;177 and (3) be issued for the sole purpose of carrying into effect the general provisions of our tax laws.178chanrobleslaw
SEC. 6. The Collector of Internal Revenue shall have the power and it shall be his duty:chanroblesvirtuallawlibraryThe cigarette manufacturers, thus, erroneously concluded that Act No. 2613 does not involve taxation.
(a) To establish general and local rules respecting the classification, marking, and packing of tobacco for domestic sale or factory use and for exportation so far as may be necessary to secure leaf tobacco of good quality and to secure its handling under sanitary conditions, and to the end that leaf tobacco be not mixed, packed, and marked and of the same quality when it is not of the same class and origin. (b) To establish from time to time adequate rules defining the standard and the type of leaf and manufactured tobacco which shall be exported, as well also as the manner in which standard tobacco, shall be packed. Before establishing the rules above specified, the Collector of Internal Revenue shall give due notice of the proposed rules or amendments to those interested and shall give them an opportunity to present their objections to such rules or amendments. (c) To require, whenever it shall be deemed expedient the inspection of and affixture of inspection labels to tobacco removed from the province of its origin to another province before such removal, or to tobacco for domestic sale or factory use.190
SEC. 7. No leaf tobacco or manufactured tobacco shall be exported until it shall have been inspected by the Collector of Internal Revenue or his duly authorized representative and found to be standard for export. Collector of customs shall not permit the exportation of tobacco from the Philippines unless the shipment be in conformity with the requirements set forth in this Act. The prohibition contained in this section shall not apply to waste and refuse tobacco accumulated in the manufacturing process when it is invoiced and marked as such waste and refuse.191 (Emphasis supplied)
. . . .
SEC. 9. The Collector of Internal Revenue may appoint inspectors of tobacco for the purpose of making the inspections herein required, and may also detail any officer or employee of the Bureau to perform such duty. Said inspectors or employees shall likewise be charged with the duty of grading leaf tobacco and shall perform such other duties as may be required of them in the promotion of the Philippine tobacco industry. The Collector of Internal Revenue shall likewise appoint, with the approval of the Secretary of Finance, agents in the United States for the purpose of promoting the export trade in tobacco with the United States, whose duty it shall be to inspect shipments of tobacco upon or after their arrival in that country when so required, to assist manufacturers of, exporters of, and dealers in tobacco in disseminating information regarding Philippine tobacco and, at the request of the parties, to act as arbitrators between the exporter in the Philippine Islands and the importer in the United States whenever a dispute arises between them as to the quality, sizes, classes, or shapes shipped or received. When acting as arbitrator as aforesaid, the agent shall proceed in accordance with the law governing arbitration and award in the locality where the dispute arises. All agents, inspectors, and employees acting under and by virtue of this Act shall be subject to all penal provisions applicable to internal-revenue officers generally.192 (Emphasis supplied)
. . . .
SEC. 12. The inspection fees collected by virtue of the provisions of this Act shall constitute a special fund to be known a the Tobacco Inspection Fund, which shall be expended by the Collector of Internal Revenue, with the approval of the Secretary of Finance, upon allotment by a Board consisting of the Commissioner of Internal Revenue, the Director of Plant Industry, the Director of the Bureau of Commerce and Industry, two manufacturers designated by the Manila Tobacco Association, and two persons representing the interests of the tobacco producers and growers, appointed by the President of the Philippine Islands[.]
These funds may be expended for any of the following purposes:chanroblesvirtuallawlibrary
(a) The payment of the expenses incident to the enforcement of this Act including the salaries of the inspectors and agents.
(b) The payment of expenses incident to the reconditioning and returning to the Philippine Islands of damaged tobacco and the reimbursement of the value of the United States internal-revenue stamps lost thereby.
(c) The advertising of Philippine tobacco products in the United States and in foreign countries.
(d) The establishment of tobacco warehouses in the Philippine Islands and in the United States at such points as the trade conditions may demand.
(e) The payment of bounties to encourage the production of leaf tobacco of high quality.
(f) The promotion and defense of the Philippine tobacco interests in the United States and in foreign countries.
(g) The establishment, operation, and maintenance of tobacco experimental farms for the purpose of studying and testing the best methods for the improvement of the leaves: Provided, however, That thirty per centum of the total annual income of the tobacco inspection fund shall be expended for the establishment, operation, and maintenance of said tobacco experimental farms and for the investigation and discovery of efficacious ways and means for the extermination and control of the pests and diseases of tobacco: Provided, further, That in the establishment of experimental farms, preference shall be given to municipalities offering the necessary suitable land for the establishment of an experimental farm.
(h) The sending of special agents and commissions to study the markets of the United States and foreign countries with regard to the Philippine cigars and their propaganda in said markets.
(i) The organization of exhibits of cigars and other Philippine tobacco products in the United States and in foreign countries.193chanrobleslaw
SEC. 13. The Collector Internal Revenue shall be the executive officer charged with the enforcement of the provisions of this Act and of the regulations issued in accordance therewith, but it shall be the duty of the Director of Agriculture, with the approval of the Secretary of Public Instruction, to execute and enforce the provisions hereof referring to the cultivation of tobacco. (Emphasis supplied)
Statutes are in pari materia when they relate to the same person or thing or to the same class of persons or things, or object, or cover the same specific or particular subject matter.The foregoing rules on statutory construction can be applied by analogy to administrative issuances such as RR No. V-39 and RR No. 17-67, especially since both are issued by the same administrative agency.
It is axiomatic in statutory construction that a statute must be interpreted, not only to be consistent with itself, but also to harmonize with other laws on the same subject matter, as to form a complete, coherent and intelligible system. The rule is expressed in the maxim, “interpretare et concordare legibus est optimus interpretandi,” or every statute must be so construed and harmonized with other statutes as to form a uniform system of jurisprudence.194 (Citation omitted)
The appellant argues that the Collector of Internal Revenue, previous to the transactions herein involved, had never collected the franchise tax on items of the same nature as those herein in question and this is strong evidence that such transactions are not subject to tax on the principle that a prolonged practice on the part of an executive or administrative officer in charge of executing a certain statute is an authoritative construction of great weight. This contention may be granted, but the principle is not absolute and may be overcome by strong reasons to the contrary. If through a misapprehension of law an officer has erroneously executed it for a long time, the error may be corrected when the true construction is ascertained. Such we deem to be the situation in the present case. Incidentally, the doctrine of estoppel does not apply here.197 (Emphasis supplied)This court reiterated this rule in Abello v. Commissioner of Internal Revenue198 where it rejected petitioners’ claim that the prolonged practice (since 1939 up to 1988) of the Bureau of Internal Revenue in not subjecting political contributions to donor’s tax was an authoritative interpretation of the statute, entitled to great weight and the highest respect:
This Court holds that the BIR is not precluded from making a new interpretation of the law, especially when the old interpretation was flawed. It is a well-entrenched rule that[:]Prolonged practice of the Bureau of Internal Revenue in not collecting the specific tax on stemmed leaf tobacco cannot validate what is otherwise an erroneous application and enforcement of the law. The government is never estopped from collecting legitimate taxes because of the error committed by its agents.200chanrobleslaw. . . erroneous application and enforcement of the law by public officers do not block subsequent correct application of the statute, and that the Government is never estopped by mistake or error on the part of its agents.199 (Emphasis supplied, citations omitted)
. . . the assailed Revenue Memorandum Circular was issued to rectify the error in General Circular No. V-27 and to interpret the phrase “tobacco for domestic sale or factory use” with the view of arresting huge losses of tobacco inspection fees which were not collected and imposed since the said Circular (No. V-27) took effect. Furthermore, the questioned Revenue Memorandum Circular was also issued to apprise those concerned of the construction and interpretation which should be accorded to Act No. 2613, as amended, and which respondent is duty bound to enforce. It is an opinion on how the law should be construed and there was no attempt whatsoever to enlarge or restrict the meaning of the law.Furthermore, the December 12, 1972 ruling of Commissioner Misael P. Vera runs counter to Section 20(a) of RR No. V-39 in relation to RR No. 17-67, which provides that only transfers of stemmed leaf tobacco between L-7 permittees are exempt. An implementing regulation cannot be superseded by a ruling which is a mere interpretation of the law. While opinions and rulings of officials of the government called upon to execute or implement administrative laws command much respect and weight, courts are not bound to accept the same if they override, instead of remain consistent and in harmony with, the law they seek to apply and implement.203chanrobleslaw
The basis for the issuance of said Memorandum Circular was so stated in Resolution No. 2-67 of the Tobacco Board, wherein petitioners as members of the Manila Tobacco Association, Inc. were duly represented, the pertinent portions of which read:“. . . .Tobacco Inspection fees are undoubtedly National Internal Revenue taxes, they being one of the miscellaneous taxes provided for under the Tax Code. Section 228 (formerly Section 302) of Chapter VII of the Code specifically provides for the collection and manner of payment of the said inspection fees. It is within the power and duty of the Commissioner to collect the same, even without inspection, should tobacco products be removed clandestinely or surreptitiously from the establishment of the wholesaler, manufacturer or redrying plant and from the customs custody in case of imported leaf tobacco. Errors, omissions or flaws committed by BIR inspectors and representatives while in the performance of their duties cannot be set up as estoppel nor estop the Government from collecting a tax legally due. Tobacco inspection fees are levied and collected for purposes of regulation and control and also as a source of revenue since fifty percentum (50%) of said fees shall accrue to the Tobacco Inspection Fee Fund created by Sec. 12 of Act No. 2613, as amended and the other fifty percentum, to the Cultural Center of the Philippines. (Sec. 88, Chapter VII, NIRC)202 (Emphasis in this paragraph supplied, citation omitted)
WHEREAS, this original recommendation of Mr. Hernandez was perfectly in accordance with existing law, more particularly Sec. 1 of Republic Act No. 31 which took effect since September 25, 1946, but perhaps thru oversight by the former Commissioners and officers of the Tobacco Inspection Service the propriety and legality of effecting the inspection of tobacco products for local sales and imported leaf tobacco for factory use might have overlooked resulting in huge losses of tobacco inspection fees . . .” (Italics supplied)
. . . .
There is no validity to the assertion that the delegated authority can be declared unconstitutional on the theory of double taxation. It must be observed that the delegating authority specifies the limitations and enumerates the taxes over which local taxation may not be exercised. The reason is that the State has exclusively reserved the same for its own prerogative. Moreover, double taxation, in general, is not forbidden by our fundamental law, since We have not adopted as part thereof the injunction against double taxation found in the Constitution of the United States and some states of the Union. Double taxation becomes obnoxious only where the taxpayer is taxed twice for the benefit of the same governmental entity or by the same jurisdiction for the same purpose, but not in a case where one tax is imposed by the State and the other by the city or municipality.208 (Emphasis supplied, citations omitted)“It is something not favored, but is permissible, provided some other constitutional requirement is not thereby violated, such as the requirement that taxes must be uniform.”209chanrobleslaw
Endnotes:
1 An Act Restructuring the Excise Tax on Alcohol and Tobacco Products by Amending Sections 141, 142, 143, 144, 145, 8, 131 and 288 of Republic Act No. 8424. Otherwise Known as the National Internal Revenue Code of 1997, as Amended by Republic Act No. 9334, and for Other Purposes.
2 Rep. Act No. 8424 (1997), sec. 144.
3 Commonwealth Act No. 466 (1939), sec. 132.
4 Rep. Act No. 8424 (1997), sec. 140.
5 Rollo (G.R. No. 125346), pp. 16–75.
6 Id. at 78–91 (decision) and 93–100 (resolution). The decision dated December 29, 1995 and the affirmatory resolution dated June 7, 1996 were both penned by Associate Justice Romeo J. Callejo, Sr. and concurred in by Associate Justices Antonio M. Martinez (Chair) and Pacita Cañizares-Nye.
7 Id. at 139–161. The case was docketed as C.T.A. Case No. 4515. The decision dated July 13, 1995 was penned by Presiding Judge Ernesto D. Acosta and concurred in by Associate Judges Manuel K. Gruba and Ramon O. De Veyra.
8 Rollo (G.R. Nos. 136328-29), pp. 8–25.
9 Id. at 28–51 (decision) and 52 (resolution). The decision dated January 30, 1998 and the affirmatory resolution dated November 13, 1998 were both penned by Associate Justice Corona Ibay-Somera (Chair) and concurred in by Associate Justices Oswaldo D. Agcaoili and Rodrigo V. Cosico.
10 Id. at 53–72 (C.T.A. Case No. 4587) and 73–88 (C.T.A. Case No. 4616). The decision on C.T.A. Case No. 4587 dated November 23, 1994 was penned by Presiding Judge Ernesto D. Acosta and concurred in by Associate Judges Manuel K. Gruba and Ramon O. De Veyra. The decision on C.T.A. Case No. 4616 dated October 6, 1994 was penned by Associate Judge Ramon O. De Veyra and concurred in by Presiding Judge Ernesto D. Acosta and Associate Judge Manuel K. Gruba.
11Rollo (G.R. No. 148605), pp. 10–51.
12 Id. at 54–69 (decision) and 88–90 (resolution). The decision dated March 7, 2001 and the affirmatory resolution dated June 19, 2001 were both penned by Associate Justice Eliezer R. de los Santos and concurred in by Associate Justices Godardo A. Jacinto (Chair) and Bernardo P. Abesamis.
13 Id. at 109–129. The case was docketed as C.T.A. Case No. 4532. The decision dated July 13, 1995 was penned by Associate Judge Ramon O. De Veyra and concurred in by Presiding Judge Ernesto D. Acosta and Associate Judge Manuel K. Gruba.
14Rollo (G.R. No. 144942), pp. 7–17.
15 Id. at 19–23.The decision dated August 31, 2000 was penned by Associate Justice Andres B. Reyes, Jr. and concurred in by Associate Justices Quirino D. Abad Santos, Jr. (Chair) and Romeo A. Brawner.
16 Id. at 24–32. The case was docketed as C.T.A. Case No. 5482. The decision dated March 9, 1999 was penned by Associate Judge Ramon O. De Veyra and concurred in by Presiding Judge Ernesto D. Acosta and Associate Judge Amancio Q. Saga.
17Rollo (G.R. No. 158197), pp. 3–33.
18 Id. at 36–49 (decision) and 51 (resolution). The decision dated July 18, 2002 was penned by Associate Justice Hilarion L. Aquino and concurred in by Associate Justices Conchita Carpio-Morales (Chair) and Jose L. Sabio, Jr. The affirmatory resolution dated May 9, 2003 was penned by Associate Justice Jose L. Sabio, Jr. and concurred in by Associate Justices Salvador J. Valdez, Jr. (Chair) and Roberto A. Barrios.
19Rollo (G.R. No. 165499), pp. 10–35.
20 Id. at 45–56 (decision) and 58–59 (resolution). The decision dated October 10, 2003 and the affirmatory resolution dated September 24, 2004 were both penned by Associate Justice Godardo A. Jacinto (Chair) and concurred in by Associate Justices Elvi John S. Asuncion and Lucas P. Bersamin.
21 “Tobacco, the Unique Plant,” 25 YEARS OF THE NATIONAL TOBACCO ADMINISTRATION 31 (2012).
22 “Tobacco Types Grown in the Philippines,” 25 YEARS OF THE NATIONAL TOBACCO ADMINISTRATION 37 (2012): “Our flue-cured or Virginia tobacco is actually concentrated in the Ilocos Region, primarily Ilocos Norte, Ilocos Sur, La Union and Abra. We also have the same type grown in Isabela, albeit on a smaller scale. . . .”ChanRoblesVirtualawlibrary
23 Id.: “For Burley tobacco, our main or largest growers are Pangasinan, Isabela, Cagayan, Tarlac, Mindoro and La Union.”ChanRoblesVirtualawlibrary
24 Id.: “Dark air-cured tobacco or the ‘native’ type is . . . grown mostly in Mindanao and the Visayas, Cagayan, Isabela, La Union and Pangasinan.”ChanRoblesVirtualawlibrary
25 National Tobacco Administration, Department of Agriculture, “Industry Performance” (visited November 4, 2014).
26 “Tobacco Types Grown in the Philippines,” 25 YEARS OF THE NATIONAL TOBACCO ADMINISTRATION 37 (2012).
27 Id. at 38.
28 National Tobacco Administration, Department of Agriculture, “Industry Performance” < http://nta.da.gov.ph/publications_manual.html> (visited November 4, 2014): Sowing is done within the month of November, depending on the type of tobacco.
29 Id.
30 “Tobacco Types Grown in the Philippines,” 25 YEARS OF THE NATIONAL TOBACCO ADMINISTRATION 38 (2012).
31 “Tobacco Cultivation and Processing,” 25 YEARS OF THE NATIONAL TOBACCO ADMINISTRATION 39 (2012).
32 Id.
33 Id.
34 Id.
35 Id.
36See TOBACCO Asia 41 (visited November 4, 2014).
37See Philip Morris USA, “Making Our Cigarettes” (visited November 4, 2014).
38 Id.
39 Id.
40 Id.
41 Id.
42 Id.
43 Id.
44Rollo (G.R. No. 158197), p. 36.
45Rollo (G.R. Nos. 136328–29), p. 144.
46Rollo (G.R. No. 148605), p. 282.
47 Id.
48 An Act to Revise, Amend and Codify the Internal Revenue Laws of the Philippines.
49 Sec. 137. Specific Tax on Cigars and Cigarettes. – On cigars and cigarettes there shall be collected the following taxes:chanroblesvirtuallawlibrary
(a) Cigars –
(1) When the manufacturer’s or importer’s wholesale price, less the amount of the tax, does not exceed thirty pesos per thousand, on each thousand, two pesos and thirty centavos.
(2) When the manufacturer’s or importer’s wholesale price, less the amount of the tax, exceeds thirty pesos but does not exceed sixty pesos per thousand, on each thousand, four pesos and sixty centavos.
(3) When the manufacturer’s or importer’s wholesale price, less the amount of the tax, exceeds sixty pesos per thousand, on each thousand, seven pesos.
(b) Cigarettes –
(1) When the manufacturer’s or importer’s wholesale price, less the amount of the tax, is four pesos or less per thousand, on each thousand, one peso and thirty centavos.
(2) When the manufacturer’s or importer’s wholesale price, less the amount of the tax, is more than four pesos but not more than six pesos per thousand, on each thousand, three pesos.
(3) When the manufacturer’s or importer’s wholesale price, less the amount of the tax, exceeds six pesos per thousand, on each thousand, four pesos.
The maximum price at which the various classes of cigars and cigarettes are sold at wholesale in the factory or in the establishment of the importer to any member of the public shall determine the rate of tax applicable to such cigars and cigarettes; and if the manufacturer or importer also sells, or allows to be sold, his cigars and cigarettes at wholesale in another establishment of which he is the owner or in the profits of which he has an interest, the maximum sale price in such establishment shall determine the rate of the tax applicable to the cigars and cigarettes therein sold.
Every manufacturer or importer of cigars and cigarettes shall file with the Collector of Internal Revenue, on the date or dates designated by the latter, a sworn statement of the maximum wholesale prices of cigars and cigarettes, and it shall be unlawful to sell said cigars and cigarettes at wholesale at a price in excess of the one specified in the statement required by this Title without previous written notice to said Collector of Internal Revenue.
50 Revenue Regulations No. V-39, sec. 1.
51 SECTION 194. Words and Phrases Defined. — . . .
(m) “Manufacturer of tobacco” includes every person whose business it is to manufacture tobacco or snuff, or who employs others to manufacture tobacco or snuff, whether such manufacture be by cutting, pressing, grinding, or rubbing any raw or leaf tobacco, or otherwise preparing raw or leaf tobacco, or manufactured or partially manufactured tobacco and snuff, or putting up for consumption scraps, refuse, or stems of tobacco resulting from any process of handling tobacco stems, scraps, clippings, or waste by sifting, twisting, screening, or by any other process.
52 Amended by Revenue Regulations Nos. 9-72 (September 27, 1972), 1-73 (December 26, 1972), 5-75 (November 11, 1975), 10-75 (December 19, 1975), and 1-76 (November 16, 1976).
53Rollo (G.R. No. 125346), p. 381.
54 Further Amending Certain Provisions of the National Internal Revenue Code, promulgated on November 5, 1985.
55 Adopting a Value-Added Tax, Amending for this Purpose Certain Provisions of the National Internal Revenue Code, and for Other Purposes, promulgated on July 25, 1987 and took effect on January 1, 1988.
56 Rep. Act No. 8424 (1997), sec. 144, as amended by Rep. Act No. 10351 (2012).
57 Id. at 78–80.
58 Id. at 85.
59 Id. at 90.
60 Id. at 93–100.
61 Id. at 16–75.
62 Id. at 31–33.
63Rollo (G.R. Nos. 136328-29), p. 54.
64 Id. at 73–74.
65 Id. at 74.
66 Id.
67 Id. at 73 and 75.
68 Id. at 28.
69 Id. at 8–25.
70 Id. at 12.
71 Id. at 13.
72 Id.
73Rollo (G.R. No. 144942), p. 20.
74 Id.
75 Id.
76 Id. at 7–17.
77 Id. at 9.
78 Id. at 33. The resolution was dated November 15, 2000.
79 Id. The Commissioner’s subsequent motion for reconsideration was also denied in this court’s February 5, 2001 resolution (rollo, p. 44).
80 Id. at 45–50.
81 Id. at 55.
82 Id. at 86.
83 Id. at 87–88.
84 Id. at 139. The resolution was dated October 8, 2002.
85 Id. at 252. The resolution was dated March 25, 2003.
86Rollo (G.R. No. 148605), p. 54.
87 Id. at 99.
88 Id. at 100–101.
89 Id. at 91–95.
90 Id. at 131–169.
91 Id. at 69.
92 Id. at 70–85.
93 Id. at 10–51.
94 Id. at 14–15.
95 Id. at 15–16.
96 Id. at 16.
97Rollo (G.R. No. 158197), pp. 36–37.
98 Id. at 37.
99 Id. at 38.
100 Id.
101 Id.
102 Id.
103 Id.
104 Id. at 39.
105 420 Phil. 920 (2001) [Per J. Pardo, First Division].
106Rollo (G.R. No. 158197), p. 51.
107 Id. at 3–33.
108 Id. at 14–15.
109Rollo (G.R. No. 165499), pp. 46–47.
110 Id. at 47.
111 Id.
112 Id. at 45–56. The decision dated October 10, 2003 and was penned by Associate Justice Godardo A. Jacinto (Chair) and concurred in by Associate Justices Elvi John S. Asuncion and Lucas P. Bersamin.
113 Id. at 58–59.
114 Id. at 10–35.
115Rollo (G.R. No. 125346), p. 351. The resolution was dated January 20, 2003.
116Rollo (G.R. No. 165499), p. 65. The resolution was dated February 14, 2005.
117Rollo (G.R. No. 125346), p. 562. The en banc resolution was dated November 15, 2011.
118 Sec. 338. Authority of Secretary of Finance to promulgate rules and regulations. – The Secretary of Finance, upon recommendation of the Collector of Internal Revenue, shall promulgate all needful rules and regulations for the effective enforcement of the provisions of this Code.
119Rollo (G.R. No. 125346), p. 386.
120Rollo (G.R. No. 125346), p. 394; (G.R. No. 148605), p. 290.
121Rollo (G.R. No. 125346), p. 386; (G.R. No. 148605), p. 297.
122Rollo (G.R. No. 125346), p. 388; (G.R. No. 148605), p. 306.
123Rollo (G.R. No. 125346), p. 387.
124 Id. at 389 and 391.
125 Id. at 392.
126 Id. at 395.
127Rollo (G.R. No. 125346), p. 395; Rollo (G.R. No. 148605), pp. 319-320.
128Rollo (G.R. No. 125346), p. 395.
129Rollo (G.R. No. 136328-29), pp. 147-148.
130 Id. at 152.
131 Id. at 153.
132 Id. at 151.
133 Id. at 152.
134Rollo (G.R. No. 148605), pp. 319.
135Rollo (G.R. No. 125346), pp. 399-400.
136Rollo (G.R. No. 148605), pp. 310-314.
137Rollo (G.R. No. 144942), p. 322.
138 Id.
139Rollo (G.R. No. 125346), pp. 401-403.
140Rollo (G.R. No. 125346), p. 397.
141 Id. at 431.
142 Id. at 432.
143 Id.
144 An Act to Limit the Importation of Foreign Leaf Tobacco.
145Rollo (G.R. No. 125346), p. 528-529.
146 Id. at 529.
147 Id. at 530.
148 Id.
149 Id. at 536.
150 Id.
151 Id. at 537.
152 Id.
153 Id. at 537.
154 Id. at 539.
155 Id. at 540.
156 Id.
157 Id. at 545-546.
158 Id. at 442-443.
159People v. Sandiganbayan, 504 Phil. 407, 429 (2005) [Per J. Panganiban, Third Division].
160Rollo (G.R. No. 144942), p. 312.
161Commissioner of Internal Revenue v. Court of Appeals, 363 Phil. 130, 137–138 (1999) [Per J. Purisima, Third Division] involved the proper application of the proviso in Section 168 of the old Tax Code: “That credit for any sales, miller's or excise taxes paid on raw materials or supplies used in the milling process shall not be allowed against the miller's tax due, except in the case of a proprietor or operator of a refined sugar factory as provided hereunder." This court, citing Mustang Lumber, Inc. v. Court of Appeals, 327 Phil. 214, 235 (1996) [Per J. Davide, Jr., En Banc], stated: “It is a basic rule of interpretation that words and phrases used in the statute, in the absence of a clear legislative intent to the contrary, should be given their plain, ordinary and common usage or meaning.” Construing the term “raw materials” in its ordinary sense, this court held that the sales, miller's and excise taxes paid on containers and packaging materials are not raw materials of the milled products under consideration and, thus, may be credited against the miller's tax due. It further declared, citing Samson v. Court of Appeals, 230 Phil. 59, 64 (1986) [Per J. Alampay, Second Division]: “Under the rules of statutory construction, exceptions, as a general rule, should be strictly but reasonably construed. They extend only so far as their language fairly warrants, and all doubts should be resolved in favor of the general provisions rather than the exception. Where a general rule is established by statute with exceptions, the court will not curtail the former nor add to the latter by implication. . . .” Conformably, it held that “[t]he exception provided for in Section 168 of the old Tax Code should thus be strictly construed.”ChanRoblesVirtualawlibrary
162Philippine Amusement and Gaming Corporation (PAGCOR) v. Bureau of Internal Revenue, G.R. No. 172087, March 15, 2011, 645 SCRA 338, 354 [Per J. Peralta, En Banc]; Michel J. Lhuillier Pawnshop, Inc. v. Commissioner of Internal Revenue, 522 Phil. 693, 700 (2006) [Per J. Ynares-Santiago, First Division]; Lung Center of the Philippines v. Quezon City, 477 Phil. 141, 155 (2004) [Per J. Callejo, Sr., En Banc]; Sea-Land Service, Inc. v. Court of Appeals, 409 Phil. 508, 513 (2001) [Per J. Pardo, First Division]; Commissioner of Internal Revenue v. Mitsubishi Metal Corporation, 260 Phil. 224, 235 (1990) [Per J. Regalado, Second Division].
163 Sec. 127. Payment of excise taxes on domestic products. – (a) Persons liable; time for payment. – Unless otherwise especially allowed, excise taxes on domestic products shall be paid by the manufacturer or producer before removal from the place of production: Provided, That the excise tax on locally manufactured petroleum products and indigeneous [sic] petroleum levied under Section 145 and 151(a)(4), respectively, of this Title shall be paid within 15 days from the date of removal thereof from the place of production. Should domestic products be removed from the place of production without the payment of the tax, the owner or person having possession thereof shall be liable for the tax due thereon.
164 420 Phil. 920, 929 (2001) [Per J. Pardo, First Division].
165 469 Phil. 1064, 1073 (2004) [Per J. Quisumbing, Second Division].
166 506 Phil. 324, 329 (2005) [Per J. Sandoval-Gutierrez, Third Division].
167Commissioner of Internal Revenue v. La Campaña Fabrica de Tabacos, Inc., 420 Phil. 920, 929–930 (2001) [Per J. Pardo, First Division].
168 Article VI, Section 1 of the Constitution institutionalizes the law-making power of Congress; Section 24 under the same Article further provides that “[a]ll appropriation, revenue or tariff bills . . . shall originate exclusively in the House of Representatives. . . .”ChanRoblesVirtualawlibrary
169 Delegations allowed under the Constitution, in particular, the authority of the President to fix tariff rates, import and export quotas, tonnage and wharfage dues (Article VI, Section 28(2)) and the authority of the local governments to create their own revenues and to levy taxes, fees, and charges (Article X, Section 5).
170Commissioner of Internal Revenue v. Solidbank Corporation, 462 Phil. 96, 117 (2003) [Per J. Panganiban, First Division].
171 274 Phil. 1060 (1991) [Per J. Gancayco, En Banc].
172 Id. at 1111, citing J. ISAGANI A. CRUZ, PHILIPPINE POLITICAL LAW 82–83 (1989).
173Rodrigo, Jr. v. Sandiganbayan, 369 Phil. 103, 108–109 (1999) [Per J. Kapunan, First Division]; Eastern Shipping Lines, Inc. v. Philippine Overseas Employment Administration, 248 Phil. 762, 773 (1988) [Per J. Cruz, First Division].
174Victorias Milling Co., Inc. v. Social Security Commission, 114 Phil. 555, 558 (1962) [Per J. Barrera, En Banc] explained: “[S]tatutes are usually couched in general terms, after expressing the policy, purposes, objectives, remedies and sanctions intended by the legislature. The details and the manner of carrying out the law are often times left to the administrative agency entrusted with its enforcement. In this sense, it has been said that rules and regulations are the product of a delegated power to create new or additional legal provisions that have the effect of law.”ChanRoblesVirtualawlibrary
175Chamber of Real Estate and Builders’ Associations, Inc. v. The Hon. Executive Secretary Alberto Romulo, G.R. No. 160756, March 9, 2010, 614 SCRA 605, 639–640 [Per J. Corona, En Banc].
176Rabor v. Civil Service Commission, 314 Phil. 577, 593 and 595 (1995) [Per J. Feliciano, En Banc].
177Tayug Rural Bank v. Central Bank of the Philippines, 230 Phil. 216, 224 (1986) [Per J. Paras, Second Division]; Romulo, Mabanta, Buenaventura, Sayoc and De Los Angeles v. Home Development Mutual Fund, 389 Phil. 296, 306 (2000) [Per C.J. Davide, Jr., First Division].
178Commissioner of Internal Revenue v. Solidbank Corporation, 462 Phil. 96, 118 (2003) [Per J. Panganiban, First Division].
179 Sec. 4. Specific provisions to be contained in regulations. – The regulations of the Bureau of Internal Revenue shall, among other things, contain provisions specifying, prescribing, or defining:chanroblesvirtuallawlibrary
(a) The time and manner in which provincial treasurers shall canvas their provinces for the purpose of discovering persons and property liable to national internal revenue taxes, and the manner in which their lists and records of taxable persons and taxable objects shall be made and kept. (b) The forms of labels, brands, or marks to be required on goods subject to a specific tax, and the manner in which the labeling, branding, or marking shall be effected. (c) The conditions under which and the manner in which goods intended for export, which if not exported would be subject to a specific tax, shall be labelled, branded, or marked. . . . . (h) The conditions under which goods intended for storage in bonded warehouses shall be conveyed thither, their manner of storage, and the method of keeping the entries and records in connection therewith, also the books to be kept by storekeepers and the reports to be made by them in connection with their supervision of such houses. . . . . (j) The manner in which revenue shall be collected and paid, the instrument, document, or object to which revenue stamps shall be affixed, the mode of cancellation of the same, the manner in which the proper books, records, invoices, and other papers shall be kept and entries therein made by the person subject to the tax, as well as the manner in which licenses and stamps shall be gathered up and returned after serving their purposes.
180 Sec. 125. Payment of specific tax on imported articles. – Specific taxes on imported articles shall be paid by the owner or importer to the customs officers, conformably with regulations of the Department of Finance and before the release of such articles from the customhouse.
181 Sec. 149. Extent of supervision over establishments producing taxable output. – The Bureau of Internal Revenue has authority to supervise establishments where articles subject to a specific tax are made or kept. The Secretary of Finance shall prescribe regulations as to the mode in which the processes of production shall be conducted in so far as may be necessary to secure a sanitary output and to safeguard the revenue.
182 Sec. 150. Records to be kept by manufacturers – Assessment based thereon. – The Secretary of Finance is authorized to prescribe, by regulations, the records which shall be kept by manufacturers of articles subject to specific tax, and such records, whether of raw materials received into the factory or of articles produced therein, shall be deemed public and official documents for all purposes.
The records of raw materials kept by such manufacturers may be used as a species of evidence by which to determine the amount of raw materials received into any factory exceeds the amount of manufactured or partially manufactured products on hand and lawfully removed from the factory, plus waste removed or destroyed, and a reasonable allowance for unavoidable loss in manufacture, the Collector of Internal Revenue may assess and collect the tax due on the products which should have been produced from the excess.
183 Sec. 152. Labels and form of packages. – All articles of domestic manufacture subject to a specific tax and all leaf tobacco shall be put up and prepared by the manufacturer or producer, when removed for sale or consumption, in such packages only and bearing such marks or brands as shall be prescribed in the regulations of the Department of Finance; and goods of similar character imported into the Philippines shall likewise be packed and marked in such manner as may be required. (Emphasis supplied)
184 DOF Revenue Regulations No. 17-67 (1969), chap. I, sec. 1.
185 Act No. 2657, known as the Administrative Code, as amended by Act No. 2803, sec. 79(B).
186 SEC. 3. Administrative schedule and paragraphs used in the collection of specific taxes on products of tobacco.—The following administrative schedule and paragraphs will be used in the collection of the tax on manufactured products of tobacco.
SCHEDULE A
Paragraph 3 (A-3) — Manufacture of smoking and chewing tobacco;
Paragraph 4 (A-4) — Manufacture of cigars;
Paragraph 5 (A-5) — Manufacture of cigarettes.
SEC. 4. Assessment numbers of manufacturers; assessment rolls to be kept by provincial revenue agents or the chief of the tobacco tax section.—Every manufacturer of tobacco products shall be given a permanent and official assessment number, distinct for each paragraph under which he operates, which will be stamped in the official register books to be issued him by the Collector of Internal Revenue. No two manufacturers under the same paragraph will be given the same assessment number. When a manufacturer retires from business his assessment number will be dropped. However, when there is merely a change in the ownership of the tobacco factory by reason of sale, transfer, or otherwise, the Collector of Internal Revenue may permit the new owner or transferee, if the latter so desires, to use the old assessment number of his vendor or transferor if the right to use said assessment number has been included in the sale or transfer. Provincial Revenue Agents, if in the provinces, and the Chief of the Tobacco Tax Section, if in Manila, shall keep, by paragraph, a chronological assessment roll of the manufacturers of tobacco products in their respective territories.
187 Tax Code (1939), sec. 151:chanroblesvirtuallawlibrary
SEC. 151. Premises subject to approval by Collector. – No person shall engage in business as a manufacturer of or dealer in articles subject to a specific tax unless the premises upon which the business is to be conducted shall have been approved by the Collector of Internal Revenue.
188Floro Cement Corporation v. Gorospe, G.R. No. L-46787, August 12, 1991, 200 SCRA 480, 488 [Per J. Bidin, Third Division].
189 L. S. BARREDO, PHILIPPINE TOBACCO LAWS AND SPECIFIC TAX REGULATIONS 11 (1970).
190 As amended by Rep. Act No. 31 (1946), sec. 1.
191 As amended by Rep. Act No. 31 (1946), sec. 2.
192 As amended by Act No. 3179 (1924), sec. 1.
193 As amended by Act No. 3179 (1924), sec. 1.
194Philippine Economic Zone Authority v. Green Asia Construction & Development Corporation, G.R. No. 188866, October 19, 2011, 659 SCRA 756, 764 [Per J. Sereno (now C.J.), Second Division].
195 CHAPTER V - Payment of Specific Taxes on Imported Cigars, Cigarettes, Smoking, and Chewing Tobacco
SEC. 61. Taxes due and payable before release from customhouse. — With respect to the specific taxes on cigars and cigarettes, smoking and chewing tobacco imported into the Philippines, the same shall become due from and payable by the owner or importer to the customs officers immediately before the release of such articles from the customhouse in such manner and under such conditions as prescribed or may be prescribed by the Commissioner of Customs. Philippine stamps are now affixed to imported cigarettes during the process of manufacture in the country of origin under the procedure outlined in Revenue Regulations No. V-11, as amended by Revenue Regulations No. V-17.
196 90 Phil. 674 (1952) [Per J. Jugo, En Banc].
197 Id. at 680.
198 492 Phil. 303 (2005) [Per J. Azcuna, First Division].
199 Id. at 312.
200La Suerte Cigar and Cigarette Factory v. Court of Tax Appeals, 219 Phil. 25, 36 (1985) [Per J. Cuevas, Second Division]; E. Rodriguez, Inc. v. Collector of Internal Revenue, 139 Phil. 354, 366 (1969) [Per J. Barredo, En Banc].
201 219 Phil. 25 (1985) [Per J. Cuevas, Second Division].
202 Id. at 34–36.
203 In Misamis Oriental Association of Coco Traders, Inc. v. Department of Finance Secretary, G.R. No. 108524, November 10, 1994, 238 SCRA 63, 70 [Per J. Mendoza, Second Division], it was held that “[t]he Commissioner of Internal Revenue is not bound by the ruling of his predecessors. To the contrary, the overruling of decisions is inherent in the interpretation of laws.”ChanRoblesVirtualawlibrary
204Procter & Gamble Philippine Manufacturing Corporation v. Municipality of Jagna, 183 Phil. 453, 461 (1979) [Per J. Melencio-Herrera, First Division].
205Villanueva v. City of Iloilo, 135 Phil. 572, 588 (1968) [Per J. Castro, En Banc].
206China Banking Corporation v. Court of Appeals, 451 Phil. 772, 809 (2003) [Per J. Carpio, First Division]; City of Manila v. Inter-Island Gas Service, Inc., 99 Phil. 847, 854 (1956) [Per J. Concepcion, En Banc].
207 161 Phil. 591 (1976) [Per J. Martin, En Banc].
208 Id. at 602–603.
209Villanueva v. City of Iloilo, 135 Phil. 572, 588–589 (1968) [Per J. Castro, En Banc].
210People v. Sandiganbayan, 504 Phil. 407, 429 (2005) [Per J. Panganiban, Third Division].
211Victorias Milling Co., Inc. v. Municipality of Victorias, 134 Phil. 180, 198 (1968) [Per J. Sanchez, En Banc] states that for double taxation to exist, "the same property must be taxed twice, when it should be taxed but once."