Case Digest (G.R. No. 52221)
Case Digest (G.R. No. 52221)
Facts:
Kaneo Sotoyama, Mikio Nawa, Fujico Nawa and Masayoshi Iwama v. Court of Tax Appeals and the Commissioner of Customs, G.R. No. 52221, January 30, 1987, the Supreme Court En Banc, Fernan, J., writing for the Court. Petitioners are four Japanese nationals who entered the Philippines as tourists on December 29, 1975 and were scheduled to depart on January 11, 1976.On January 11, 1976, by confidential information to customs officers that several departing Japanese on Flight CX900 might be carrying large amounts of foreign currency, customs examiners searched petitioners’ checked luggage and persons. Currency was found in their suitcases and on their persons in substantial sums (itemized in the CTA records), and they were unable to produce any Central Bank permit authorizing export of foreign exchange. The seized monies were booked under Seizure Identification No. MIA-1350-76.
Proceedings followed before the Collector of Customs, Airport Customshouse, which on March 16, 1976 declared the seized foreign currencies forfeited. The Commissioner of Customs affirmed that forfeiture. Petitioners appealed to the Court of Tax Appeals (CTA) (docketed CTA Case No. 2902), which on April 23, 1979 affirmed the forfeiture; a motion for reconsideration was denied on November 20, 1979. Petitioners filed a petition for review on certiorari to the Supreme Court challenging (1) that Central Bank Circular No. 265 had been repealed by later circulars, and (2) that the government failed to prove the currencies originated in the Philippines rather than having been brought in from Japan. They also alleged grave abuse of discretion in the CTA’s denial of their motion for reconsideration/new trial.
The case produced procedural activity in the CTA (a Second Division decision of October 30, 1981 was recalled and resubmitted, then the matter was referred to the Court en banc). After various motions and filings by both sides, the petition reached the Supreme Court by petition for review on certiorari.
Issues:
- Did the Court of Tax Appeals commit grave abuse of discretion in denying petitioners’ motion for reconsideration and/or for new trial?
- At the time of seizure (January 11, 1976), was Central Bank Circular No. 265 effectively repealed by subsequent Circulars No. 270 and No. 534, and did petitioners sustain their burden to prove the foreign currencies were brought into the Philippines from Japan so as to defeat forfeiture under the Tariff and Customs laws?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)