Case Digest (G.R. No. L-17931)
Facts:
Casco Philippine Chemical Co., Inc. v. Hon. Pedro Gimenez, G.R. No. L-17931, February 28, 1963, Supreme Court En Banc, Concepcion, J., writing for the Court. Petitioner Casco Philippine Chemical Co., Inc. sought refund of foreign exchange margin fees it paid when it purchased foreign exchange to import raw materials; respondents are Hon. Pedro Gimenez, Auditor-General of the Philippines, and Hon. Ismael Mathay, Auditor of the Central Bank, in their official capacities.Pursuant to the Foreign Exchange Margin Fee Law (Republic Act No. 2609) the Central Bank issued Circular No. 95 on July 1, 1959 fixing a uniform margin fee of 25% on foreign exchange transactions; the Bank later issued a memorandum prescribing the procedure for applications for exemption under the law. In November–December 1959 petitioner purchased foreign exchange for importation of urea and formaldehyde, paying margin fees totaling P33,765.42; in May 1960 it made another purchase and paid P6,345.72 in margin fees.
Petitioner sought refunds relying on Monetary Board Resolution No. 1529 (November 3, 1959), which declared the separate importation of urea and formaldehyde exempt from the fee. The Central Bank prepared margin-fee vouchers for refund, but the Auditor of the Central Bank refused to pass them in audit, holding that the exemption granted was not in accord with Section 2, paragraph XVIII of Republic Act No. 2069 (as the decision quotes the statutory provision). The Auditor-G...(Pro-only)
Issues:
- Are urea and formaldehyde, when imported separately for the manufacture of plywood and hardboard, exempt from the foreign exchange margin fee under Section 2, paragraph XVIII of Republic Act No....(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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