Facts:

• The case involves the determination of the ad valorem tax on cement.
• The petitioner is Cebu Portland Cement Company.
• The respondent is the Commissioner of Internal Revenue.
• The main issue is whether the tax should be based on the market value of the quarried minerals used in production or the selling price of the cement.

Issue:

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Ruling:

• The court ruled in favor of the petitioner, Cebu Portland Cement Company.
• The ad valorem tax on cement should be based on the actual ma...(Unlock)

Ratio:

• Cement is composed of minerals, but it is no longer in the state or condition contemplated by the law.
• The ad valorem tax is a severance tax, which is a charge upon the privilege of severing or extracting minerals from the earth.
• Therefore, the tax should be computed based on the market value of the mineral in its condition at the time of removal from the mine, before it undergoes substantial changes through chemical or manufacturing processes.
• The law intended to impose the tax...continue reading