Endnotes:
1. Sections 153 and 156 of the 1977 NIRC (formerly Sections 142 and 145 of the NIRC, as amended) underwent several amendments. At the time petitioners purchased the manufactured oils and paid the corresponding specific taxes, the following provisions of Sections 153 and 156 of the 1977 NIRC were applicable:chanrob1es virtual 1aw library
(A) Presidential Decree No. 1672 (effective February 8, 1980 to March 20, 1981)
SECTION 1. Section 153 of the National Internal Revenue Code of 1977, as amended, is hereby further amended to read as follows:jgc:chanrobles.com.ph
"SEC. 153. Specific tax on manufactured oils and other fuels. —On refined and manufactured mineral oils and motor fuels, there shall be collected the following taxes which shall attach to the articles hereunder enumerated as soon as they are in existence as such
"(a) Kerosene, per liter of volume capacity, seven centavos;
"(b) Lubricating oils, per liter of volume capacity, eighty centavos;
"(c) Naphtha, gasoline and all other similar products of distillation, per liter of volume capacity, ninety-one centavos: Provided, That, on premium and aviation gasoline, the tax shall be one peso per liter of volume capacity;
(d) On denatured alcohol to be used for motive power, per liter of volume capacity, one centavo Provided, That, unless otherwise provided for by special laws, if the denatured alcohol is mixed with gasoline, the specific tax on which has already been paid, only the alcohol content shall be subject to the tax herein prescribed. For the purposes of this subsection, the removal of denatured alcohol of not less than one hundred eighty degrees proof (ninety per centum absolute alcohol) shall be deemed to have been removed for motive power, unless shown to the contrary;
"(e) Processed gas, per liter of volume capacity, three centavos;
"(f) Thinners and solvents, per liter of volume capacity, fifty-seven centavos;
"(g) Liquefied petroleum gas, per kilogram, fourteen centavos: Provided, That, liquefied petroleum gas used for motive power shall be taxes at the equivalent rate as the specific tax on diesel fuel oil;
"(h) Asphalts, per kilogram, eight centavos;
"(i) Greases, waxes and petrolatum, per kilogram, fifty centavos;
"(j) Aviation turbo jet fuel, per liter of volume capacity. fifty-five centavos"
(B) Executive Order No 672 (effective March 21, 1981)
SECTION 1. The rates of specific tax on certain petroleum products are hereby revised, hereby amending for this purpose Sections 153, 155 and 156 of the National Internal Revenue Code to read as follows:jgc:chanrobles.com.ph
"SEC 153. Specific tax on manufactured oils and other fuels. — On refined and manufactured mineral oils and motor fuels, there shall be collected the following taxes which shall attach to the articles hereunder enumerated as soon as they are in existence as such:jgc:chanrobles.com.ph
"(a) Kerosene, per liter of volume capacity, nine centavos:jgc:chanrobles.com.ph
"(b) Lubricating oils, per liter of volume capacity, eighty centavos;
"(c) Naphtha, gasoline and all other similar products of distillation, per liter of volume capacity, one peso and six centavos: Provided, That on premium and aviation gasoline the tax shall be one peso and ten centavos and one peso, respectively, per liter of volume capacity;
"(d) On denatured alcohol to be used for motive power, per liter of volume capacity, one centavo: Provided, That unless otherwise provided for by special laws, if the denatured alcohol is mixed with gasoline, the specific tax on which has already been paid, only the alcohol content shall be subject to the tax herein prescribed. For the purpose of this subsection, the removal of denatured alcohol of not less then one hundred eighty degrees proof (ninety per centum absolute alcohol) shall be deemed to have been removed for motive power, unless shown to the contrary;
"(e) Processed gas, per liter of volume capacity, three centavos;
"(f) Thinners and solvents, per liter of volume capacity. sixty-one centavos;
"(g) Liquefied petroleum gas, per kilogram, twenty-one centavos Provided, That liquified petroleum gas used for motive power shall be taxed at the equivalent rate as the specific tax on diesel fuel oil;
"(h) Asphalts, per kilogram, twelve centavos;
"(i) Greases, waxes and petroleum, per kilogram, fifty centavos;
"(j) Aviation turbojet fuel, per liter of volume capacity, sixty-four centavos"x x x
"SECTION 156. Specific Tax on Diesel Fuel Oil. — On fuel oil, commercially known as diesel fuel oil, and all similar fuel oils, having more or less the same generating power, per liter of volume capacity. twenty-five and one-half centavos, which tax shall attach to this fuel oil as soon as it is in existence as such."cralaw virtua1aw library
2. 104 SCRA 710 (1981).
3. SECTION 5. The proceeds of the additional 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 fossil 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 conditions enumerated in subparagraphs 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.
4. Rollo, pp. 15-17.
5. Id., at 87- 109.
6. 202 SCRA 137.(1991).
7 Dated March 25, 1992
8. SECTION 1. Section one hundred and forty-two of the National Internal Revenue Code. as amended, is further amended to read as follows:jgc:chanrobles.com.ph
"SECTION 142. Specific Tax on manufactured oils and other fuels on refined and manufactured mineral oils and motor fuels, there shall be collected the following taxes:jgc:chanrobles.com.ph
"(a) Kerosene or petroleum, per liter of volume capacity, two and one-half centavos;
"(b) Lubricating oils, per liter of volume capacity, seven centavos;
"(c) Naptha, gasoline, and all other similar products of distillation, per liter oil volume capacity, eight centavos; and
"(d) On denatured alcohol to be used for motive power, per liter of volume capacity, one centavo: Provided, That if the denatured alcohol is mixed with gasoline, the specific tax on which has already been paid, only the alcohol content shall be subject to the tax herein prescribed. For the purpose of this subsection, the removal of denatured alcohol of not less than one hundred eighty degrees proof (ninety per centum absolute alcohol) shall be deemed to have been removed for motive power, unless shown to the contrary.
"Whenever any of the oils mentioned above are, during the five years from June eighteen. nineteen hundred and fifty two, used in agriculture and aviation. fifty per centum of the specific tax paid thereon shall be refunded by the Collector of Internal Revenue upon the submission of the following:jgc:chanrobles.com.ph
"(1) A sworn affidavit of the producer and two disinterested persons proving that the said oils were actually used in agriculture, or in lieu thereof.
"(2) Should the producer belong to any producers’ association or federation, duly registered with the Securities and Exchange Commission, the affidavit of the president of the association or federation, attesting to the fact that the oils were actually used in agriculture.
"(3) In the case of aviation oils, a sworn certificate satisfactory to the Collector proving that the said oils were actually used in aviation: Provides, That no such refunds shall be granted in respect to the oils used in aviation by citizens and corporations of foreign countries which do not grant equivalent refunds or exemptions in respect to similar oils used in aviation by citizens and corporations of the Philippines."cralaw virtua1aw library
9. SECTION 2. Section one hundred and forty-five of the National Internal Revenue Code, as amended, is further amended to read as follows:jgc:chanrobles.com.ph
"SECTION 145. Specific Tax on Diesel Fuel Oil — On fuel oil. commercially known as diesel fuel oil, and on all similar fuel oils, having more or less the same generating power, there shall be collected, per metric ton, one peso."cralaw virtua1aw library
10. Supra, note 4 at 49-67.
11. Id. at 69-70.
12. Should be Sections 153 and 156.
13. Supra, note 4 at 20-21.
14. 293 SCRA 76 (1998).
15. Supra, note 8.
16. Supra, note 9.
17. Supra, note 3.
18. 293 SCRA 76, 88 (1998) citing: Paper Industries Corp. of the Phil. v. CA, G.R. Nos. 106984-85, 250 SCRA 434, 455 (1995).