Case Digest (G.R. No. L-8989)
Facts:
Ngo Siek v. Collector of Internal Revenue, G.R. No. L-8989. October 18, 1956, Supreme Court En Banc, Reyes, J.B.L., J., writing for the Court.Petitioner Ngo Siek purchased fresh (raw) eggs, subjected them to a salting process (immersion in a solution of salt, mud, lime, ash and water; packing in baskets covered with hay; later cleaning, boiling, immersion in dye, drying) and sold the resulting salted eggs at retail. The processing altered the shell and contents and the finished product was commonly distinguished in trade (e.g., by tinting the shells red).
The Collector of Internal Revenue assessed petitioner for and he paid P3,499.08 representing fixed and sales taxes and surcharges for sales of salted eggs during 1951 and 1952, treating petitioner as a manufacturer/producer subject to the manufacturer's seven-percent tax under section 186 of the National Internal Revenue Code. Petitioner sought a refund which was denied. He then brought the case to the Court of Tax Appeals (docketed CTA No. 14), which ruled against him, holding him liable under section 186 and disallowing a deduction for the cost of fresh eggs used in 1952.
Petitioner sought review in the Supreme Court of the decision of the Cour...(Subscriber-Only)
Issues:
- Do the manipulations performed by petitioner on fresh eggs so change their nature as to make the resulting salted eggs the product of a manufacturer or producer taxable under section 186 of the National Internal Revenue Code?
- Is petitioner entitled to deduct from gross selling price the cost of the fresh eggs used in producing salted eggs under the d...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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