Case Digest (G.R. No. 139803)
Facts:
Commissioner of Internal Revenue v. La Suerte Cigar and Cigarette Factory, Inc., G.R. No. 139803, September 02, 2005, Supreme Court Third Division, Sandoval‑Gutierrez, J., writing for the Court.La Suerte Cigar and Cigarette Factory, Inc. (respondent) is a manufacturer of cigarettes that used imported stemmed‑leaf tobacco. In 1995 respondent purchased 138,600 kg and 19,200 kg of stemmed‑leaf tobacco from a foreign tobacco manufacturer. The Commissioner of Internal Revenue (petitioner) assessed specific excise taxes at P0.75 per kilogram under Section 141 of the Tax Code (now Section 144) in relation to Section 2(m) of Revenue Regulation No. 17‑67, resulting in assessments of P103,950.00 and P14,400.00 respectively.
On May 4, 1995 respondent paid P118,350.00 under protest. Respondent filed claims for refund with the CIR on September 27 and October 2, 1996, covering October 1994 to May 1995, but the CIR failed to act. Respondent then sued for refund in the Court of Tax Appeals (CTA) as C.T.A. Case No. 5527. The CTA, by decision dated February 15, 1999, ordered the refund of P118,350.00.
The CIR elevated the matter to the Court of Appeals via a petition for review with prayer for preliminary injunction. The Court of Appeals, in a Decision penned by Justice Bernardo P. Abesamis (with Justices Artemon D. Luna and Teodoro P. Regino concurring), issued on August 23, 1999, denied the CIR’s petition and affirmed the CTA, reasoning that Section 137 of the Tax Code (now Section 140) exempts stemmed‑leaf tobacco sold in bulk by one manufacturer to a...(Subscriber-Only)
Issues:
- Whether respondent is entitled to a refund of P118,350.00 erroneously paid as specific taxes on imported stemmed‑leaf tobacc...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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