CTA Case No. 4172 (Decision)

REPUBLIC OF THE PHILIPPIN ES COURT OF TAX APPEALS QUEZON CITY LEPANTO CONSOLIDATED MINING COMPANY, INC. � Peti tioner , - vers us - C.T.A. CASE HO. 4172 COMIHSSIOHER . OF INTERNAL Pr omulgated REVENUE, Respondent. SEP 0 11994 ( X - - - -� DECISIO N / Thil3 is a judicial claim for refund filed by petitione r seeking to recover 25X of t h e specific taxes paid on various manufactured oils and fuels pursuant to the provision of Sec. 5 of Republic Act No. 1435 in the amount o� Pl,056,316.90 covering the period of March 1985 to February 1987. The facts of the cas e are nat disputed. Respondent either admits or merely denies far lack of knowledge the material allegations in the petition and raises defenses that are legal in nature. Petitioner is a domestic corporation duly organized and existing under the Philippine laws. lt is a licensed mining firm with Mining Lease Contract Nos. MRD- 353, 354, ~3 1

DECISI ON - C.T.A. CASE NO. 41~ 2 -2 - and :J5 5 < E)ths. "A", "A-1", "A - ~! " duly entered into wi th the Hinistry of Na t u r l Resources. ln oxder to carry out its minjng busines s , petiti oner purchased petroleum products �rom various oil companies wh ich were s ubj ected to specific taxes under Sees. 153 and 1 5& <fo r merly 142 and 145) of the National taxes were paid \/", and pa s sed an o h pet~ ioner . On June lS, 1987, petit ' oner fi led a letter claim f en a :r e f u n d o :c ~ cr clit (Exh. "1"> with the Bureau of Int e rnal ReV�1'nu ~ tasking :fo the reco very o f 2 5X of the specific ta x~s paid on refined and man ufa ctured mineral oils, motor j 'uel and diesel f u el oils dur �ng the peri od March J-'eobruary 11.:1~7 1n the amoun t o:t Pl.U56,316.90, com put ed ~ s foll ow s: YoluJH> ST R~te Srrcific RPfllndable fl.iiersl f.Pr .~11~ Taxes Paid 25% Lf?pan ~.Q. ]Ane Div!�ii~!L 1, 524, 748. 20 No ST Di esel - liar. to Dl'i:. 1985 621,03&.1)(1 Ho ST Jan. to liar 21 , l~Sb 894,638.70 PO. 523 p 4&7,8%.04 p 11&, 974,01 Jlay 12 to llec. 1986 10&,253.1)(1 !.290 137,0&7.14 Re>quhr 54,923.00 1. 575 8&,503.73 Gasoline - liar. to [ec. 1985 81,781.70 2.489 212,959. 55 Jan. to !lay 21, 198& 24~958.30 o;,sJ0.42 109,132. 61 !lay 21 to Dec. 1986 12,457.�,0 1.185 14,762. 2& Extra (1,741.83 Gasoline - ftar. to DP.c. 1985 5,867.00 1.490 24,5..13.33 2.489 Jan. to Bay 21, 1986 2.~5&.7Q __j!!,_037. 42 !lay 22 to Ilt>e. 1986 28_, 181.30 1'2,009.36 Lube-oil - ftar. to Dec. 19~ '2135, 349. 00 4.50 1, 284,070.50 83 2

DEGlSION - G.T.A. GASE NO. 4172 Vt~lu ST Rete Specific Ref und abl e 25t tLHruJ Per Liter l'ax!'S Paid ~pjnt~~~ � viaion Jan. to ftay 21, 19Sb 120,~131.00 4.50 544,189.50 ~~711~,!00 4.50 ftay 2Z to Pee. 1986 593,472.00 8421364!00 2, 670, 624. 00 667, 656.00 Bunker - liar. to Dec. 1985 0.25 12,662.50 Jan. to llay 21, 1986 0.443 55,911.92 166 4 1. 47 llay 22 to Dec. 1986 0.51\ ___]15~!!2._ Aviation Turbo 58,766.47 Jet Fuel - liar. to llf>e. 1985 1.20 l, Q93. ZQ.. 273.30 LPG - liar. to Dec. 1985 46,311.8 K 0.625/K 28,944.88 Jan. to llay 21, 1986 2 . 972.4 K 0.029/K 695.20 4s,m._u 1.247/K 571354.89 liar ~:2 to Dec. 1986 ,I 861994. 97 21 ,748.74 Aviation Departaent 1.20 99, 948.00 Aviation lurbn 1.509 66, (1f?7.04 .let f'uPl - ftar. to lll>c. 1985 2. '!1J7 !72,47l.GO . 3 466.64 69,756. 41 Jan. t~ J!ay 21, 1986 P~267. S8 Pl, OS6, 316. 90 l!ay ~!2 to Dt>c. 1986 T0 t AL <see Exh. "H'I This claim for r fund w nchored on Sec. 5 o:f Republic Act No. 1435 and h D tision of the SuprPme Court in the case of lnaula Lumb r Co . v. Court o :f Tax Appea1s, G. R. No. L- 1057, May 2 9 , 1 981. And was supp o r t e d b y A:f~ i d a v its o f i t s S enior Vice-Pres i dent and four <4> disinteres ted pers ons <Exhs. "I-1" to "1 -5 "> a ttesting to the ~act that the petroleum produc ts p u r chased f r om variou s oil c o mpanies were exclusively and a ctually used in t he exp loi tation and opera.tions . o~ its mining cl aims. (}33

U�CIS1Uri. - C.T.A. CA E NO. 4172 -4- Respondent has not ac ed on the claim filed by petitioner. Th u ~n order to toll th e - run ning of he ,I two-year preecri tiv p . r otl unde Sec. 230 (formerly 292 ) of the N iona Int rnal Revenue Code, petitioner filed the in t.n J.l t . . Oft ' v ew on July 1, 1987 praying for the refund of Pl, 56 . 316 . 9 ~ a 20X interest per annum; a nd h o of ui t.. Respon d nt n h , An nd by way of s p cial and affir mat ive def na r h .fol l owing: a. the refund pr vile und Sec. 5 of Republic Act No. 1435 h s ei h xpired o is de@m d superseded and I or repe Jed wi h the .. su n o nd/or p omulgation of ' an y of P. D. Nc1. 14 ; Local Tax Co e 1974; P. D. No. 4 2 6; P. D. No. 711 : P.O. No s . 1 58 and 1 58-A; and P.O. No. 1955; b. the government cannot be made to pay interest on the amount to be refunded <At.J.as FertiJ. � zer Corp. vs. CIH, 100 SCRA !:�5 6 r CIH vs. St. Paul. ' a Hosp i ta l. o :f Iloilo, c. it is incumbent upon petitioner to show that it has complied with the provisions of Sees. 243 and 246 (now 230) of the 1986 Tax Code ; and d. claims for re1und of taxes are construed strictl y ag8inet claimants, t he same being in the nature 83 4

DECIS ION -� C. T . A. CASE NO. 41T2 - 5- of an ex~mption from taxation <Man ila Electric Co. va. GIR, 6? SC:RA 357 >. The only issue to be eaolved by this Court is whether or not p it.ione:r s still entitle d under Sec. 5 of Republic Act No. 1435 to he re und of 25X of the specific taxes p �d on pet. oleum products taxed under Sees . 153 and 156 <:fa merly Sec � 142 and 145> of the 1977 Tax Code. Respondent main ains, in his Memo ra ndum, that the refund privilege unrlPr Sec:. . !:� of RA No. 1435 was withdrawn by promu lgation i HA No . 19~5 wh ich bec ame effective on October 1-, 19B4. We d:Lsagree wi t .he respondent. Spc. 5 of Republic Ac t No. 435 p.r�ov:ldes : Sec. The proc . r� ~ lro: ot he addi t ional t .ax on manu:f act.ured oi 1 t:) ollol .l ccrue tc� the road And bridge 1undl n t n pol tical subdivi.ion for whose> ll PnP:t � t i .h . tax is c ollected: Provided, however, Tha whenever any oils mPntioned abnve �rp ae d 'Y miners or fnrest conc1:ossionai:r�es in th4"'.' T ope At-i ons , twenty- five per cen um nt he vpeoific tax paid ther1:oon shall bt=> r �r nJrlf"'cl by the- Cnl lector of lnte:cnal ReveTHH? upnn . llt�miBs �on cd pr oof of Actu''*l usP o :f c:� 1 an<i Hnder� simi ar c:ondit. ions �numerated n suh-parRgraph~ one an d two of section one hereof, am nding ~ec ti on one hundred for y - w of the ln rnal Revenue Code: Provided, further. Th t no read sha 1 be constructed unless the e or location .I thereof shall have be n approved by the Commissioner of Public Highw ys a:fter a dete:rmination �that su ch road can be made part of an integral and articulated route in the 835

DECISION - C.T.A . CASE NO. 4172 ) -b- Philip�,ine Highway System , as required in section twen y-s�x of the Philippine Highway Act o:f 195:-t. It is ~xp1i ci from the above- quoted law that miners and :forest concessionaires were given a r e :fund privilege E?quivalent to 25:1. oi the specif ic ta xes paid manu:factured oils ac .ua ly userl :n heir opera tion s . The r8tjonale ~eh'nd this gr nt was �x pl aine d through a re1:::c�1ution tty C:ourt in t.he case o:f Cnm ission :r o v. Atlas Consolidated 1 -~ G. R. No. 9:3601 , Nov. 1 .'.:..., 1 y�~o: A TPAding h 1 n e i ve proceedings leading to the of RA 435 shows that mi n in q and nm b . n . sicanaires wer ~ ~rant ed partial rP und o1 pPcif c axes because the g~s �line an ~tPl h~y consume is mo s ly used wjthin t i r own compuund~ and ro ads. RA 1435 gave t hese conce ~ on~i eB rPlief , i n .h e :form of a tax ,e:.f untl, : ru~ ~ E-ir � rucks and ve-hicl�?s SP.ldom ply the:- 11~t �. nnal h ighwa y , the cons t r�Jction of w 1 � ch � f1 :fundpcl by t f!> spe~:i f j c t a:x r.n llec. ed by ttteo nat_ioua l government. There �ic:: there _ .11 �e nn r-atic�r1ale- in c Jn itioning the qrant of reiund on the paymen o� these mining or lumber c oncess onaires o� any additional local tax. Furthe r ~ ~n h& cas~ oi Com ~s o n er o~ Internal RPvenuP v. Rio Tuba N-ckP.l Mininn Corporati on and Court o1 Tax Appe~la, G.R. Sept .ernber 30 , 1991 <2 02 SGRA 137) ' the Supreme Court Th ird Di vi sion held : "<t>o a r mind, he prov � so in SPc ~on 5 st anding alone is enough basis �or the gr nt oi refund. )C}t)( �� 836

)I�:C f!->ION - C.T.A. CASE NO. 4172 -7- Findinp for p t i t i ner , th~ only hing left to be dete minPd Py thiG Cour~ is he am u nt of specific ponctent Commissi oner of itioner. It a :;1 uld b . lfl d elf> r thnt pet io ner asked for fl er nq purcha ses of 111anuf a c Ur�. d ebrua y 19 87. Hnwever, si.nc.e the 1-i'!Jhwny t'pl"'r::it_l f'und ( >J fund on which accrued) t .he speci .f ic taxes on rP roleum pTO ~U C.tS co nt.inued .its exis tence only up to 1 CJS~, petitioner ca n only be accorded a refund privilege on its purchases of refined a nd manufactured oils for the year 1 985 <see Commissioner of Inter nal Reven ue v. Jho Tuba Nickt?l Mi n inq Corp oration, G. H . tlc.�s . ~3!:�H::~ - 84 , Resolution d a t .ecl r1:::tT c h ~5 , .l9Y2) . 1t follow s , therefore , hat t he parti al TP.:funti of spec ific ta:-ces pa:i d on pet rolPu m pr o d tcts l1y petiti oner from Janua ry 1986 to February 1987 <Ex h s . "B - �' 1. 76" to "B �-468 ", "D -1 " t. o "D - 1.18" , "F - 14" t o " F-27" , "F- 4 2 " to "F �-46", "G -233 " to "Li-5 lrt") is no longer c overed by t.he refund privil ege und er Sec. 5 of RA 1 4 3!:�. Further , this Court would like to emphasize that the j ud ici a l remedy for filing a claim for refu nd should be made within a t wo-year period :from the date o:f payment of 83 ?

DEC I SHIN - C.T.A. CASE NO. 4172 -0 - he t. ax pu :- s aant to the prov:t s ion eli ~:ec. 230 <forme r ly Sec . 292> of he T x .ode. In computing for the pr e ~cr p ive perio d, We shall adopt our ruling n the ee o:f. A as -asan Timber Co., Inc. v. C01 mis ion r o ln ern R venu , CT A Case No. 352 4, Decemb r 17, �pe-oi.11c ta:-c. We quote: Tlu? Tax Code provi des fc�r� th e judicial remedy of filing a claim for refunJ within a period oi two (2) years from th~ dat~ of paymen + o:f tJ1e 1. r~x pnr s wTnt t .o t lte f'T uv i si �n of Sect, i <Jl 1 2:-ill <f c�rnu?1��.l y ~~ Y~�~ , .. St:>ction l ::l ~� of t.h <? Ta>t Code insofar � as pert. in~:>nt provid~~ s "t. t.r~ t s p e c i f i c �ta>tes on locally manufactun::-d J� P t �roleum p:rnducts levied under Sections 1 ~�3, 1 ~~ ~� and 156 o:f this t .i tle, except luhricatinq oil and g:rease shall be paid within fifteen <15l dayR from the date o:f remova.l thereo:f from he place of JH" oduc-tion. lt is th~=>r-=- Jnr P P. v'id E-n \hat the manufactu :rer of p<=>t:r�-:t l P n~ p r nnuct has u p to 15 clays i :: om the d a te o1 i l E: remov al i l bi n whi c h tC' pay the specific ax<? -: n-r �c rt 1 y As an manufa t:~ t U :tt"d P<:-trnlP�. H�� proclu'=': s. e:>r.cept:lon, marl\d ~ \1-r�ey-s cd lub:ricatinq u lls and g:��ease hav e? �t c�� ~� � y h spec i t c:: t ::=t :x collec t ed from th~ pu r c hns& t on he df � oi i t s �' re mova .L from the place of product " on. Inasmuch as t he pet.i tion :for :review was filed only on .July 1, .t987, petit.ione:r is then bound by prescriptive peric..td . The 25/. :re:fu nd of speci:fic taxes paid on 1ubrica ing c>ils purchased p rior to July 1, 1985 <two 838

J!Et: JSHJN - C . T. /\. CM:E Htl. 4172 - I) - Jl?a :t s p:r :i c�:r to be- :t: i J. :i.tl {f cd .�et i t ion> have- �' renova l . All uthe:r- ):l\1r�chat;.l&S {I matnd Qt'.t 1( ~ rl r�t-t:rtoleu:tn products SUCII As di~seJ. gasolin � whe-re- tlH? specific taxes ~:r 1.5th clay i s :r-emoval. Thus , pe .i tionpr's f'\lrchr:tses of diesel, gi'lsoline, bunker fuel and avia1 .ion gas pTior t~ June 16 , 1985 have prescribed <Exhs . "1> -- 119" to "V-189" aud G-1"' t.o "G-!:�5� > and tt1oSE' purchase!:;; o:f said oils on June 16 , 198!:� are dE'emed paid c�n July l, 1985 wh ich iB still within the two-year period to claim for a refund. From among the exhibits prPsen erl by petitio~~Y. this Court excluded in the cowputat�on: J. "R-1" to "B-17':0" to oil specific tr:tx the�reon {S E'e E:d l . "H" .1; F.:<ths . "D-1!:�6" t.o " D-192 " for t.he reason t. hr:. . said Mo~urents were mere reproduction o:f Exhs. "D-llg� to 11 D-� 1 '=�::'�"; and 839

p,:;r.rsroN - G. T.A. CASR NO. 417~ lO ~~ -1 * t o PG- 232 " on t h e ground that p ~t it1oner 1ail d tn oiv~ th prop r c onvers ion rate of LP G in pounds o litPrs. fo l 1 t�Wiflf.J: lll\IC*iCI? [1}\ 011 IH�d t!nl!-ff ~ ~~i!!IHr� f'lll1CIH!'I" l.u nt't\tth F ~1 CIH llo. Shit-ret~ hh. na line WBI % � 2tH~~ P� "�{lf!O ~~(t~'Q o7 � � 0~-s:. 8-13 ~.(100 ~. (l(ln 41{1{.4 fJ7� 12-BS P-21 3, !XlO 41H'.O 07�19-85 B-25 J.~ 411 94 07�19-B:, B-28 J, cro 41198 fJ7 -l ~HIS II-3'0 J,()(t(l 3, 000 ~B�4 fJ7-3l -85 IHl 3,000 ., t :.rs.4 (r~-(t2-65 B-47 3,000 44755 OB-22-SS B-~4 .,oro ~Ff-3 00-?2-�'5 l:l-55 J,D!Xl 3, 01."tl 447f,5 P-B-?2-B'J l\-56 J, {Y'!J 4~1(134 (19-12-tl') 11-�-2 2,9~7 l.~'J 4f.%5 10-W- 85 B-8'3 2, :r.~ 4f.f-M l(l-".JHI5 a-M 2,975 3,953 4f.T. 3 10-�J4-f:\"! li-S9 ~~. � 1Hol9 JO- IJS- 8:� B-90 ) , (l{t'l ~'�~�- ~ 1 0-07-~~. ?-93 2, 9F~� 3,000 ~?f.l)7 Hl- 15- tl"'' P.-1(1~ 3, (W:I(l 4P,�. 1 !(l- ~ 5-!t5 lHOS 4, ('(1(1 lO,w.J lHlO 3,000 4~{-f.t, lO< fl t'"' lHl6 10,1XX1 ll� IJ7 3,000 1�'754 HI-/B �S~ !HIS 10, cro ~1!7~? w-:�eo ~� lO,Inl ~!l772 10-:ICH I) 10,000 ~~755 l} -(:2-85 lH20 4P819 Jl-CH~5 IH25 4S!l78 1HJ7-B5 11-127 ~~qn Jl-11-85 lH31 4~ 11-15-85 ll-139 49011 11-lS-f:\S !H49 4%02 11-B-f~ IH4Z 49531 11-21-85 B-145 ~9�,05 H-~;- Bs ll-148 ~40

m�:c uaoN - C.T.A. GASI:. NU. 41 "1:-l - 11 - lnvoice I�ate Oil a11d 9unkPT Avia .it'ITJ Gatttlint> Ho. Stdppl'd Exh. Gosoline Lu ricanls Fuel Oil 4%28 11 - 28� !1~ fl-150 :l,OOO � 98(1 u 4%27 t l-2lH\~ 153 49743 1:'-Cib-85 B-159 9,000 49806 1 :~�10- 5 8�1 2 3, 000 49!102 1 : ~ �12 - 85 JH&4 , (l((l 4~895 1:~-lG� !\ B�l&e 9, ()(1(1 18194 o:Hn ~ s~ IH19 , Hl9. 00 18796 o; t -UJ � e~ D� l?O 't .oo tBg)S O:HH35 P-ln ,f:.\7.00 Hl%1 tl:H :l�85 -lZJ 1, 18. 70 18%7 o:H �H.I 0-12-4 1.0 .w 18%1:1 O:Hb-S!.i r>-125 1, 115.70 11:1992 O'l-28-85 ll-126 693.30 1899'3 cn-2!Hl5 ll-127 1, 299. ()() 17256 O�H0-85 D-1 28 81 6.80 172:-.8 {li-((H\5 ()-129 813.40 l72f.l (1.;-(14-85 n-t :m 771.:(1 172b2 0Hl4-85 ll-131 ?81 .70 172&6 llHY/-85 ll-132 73�,.00 172A2 OH3-85 n-133 E-29.30 17336 0Hl-ll5 0-134 1, 030.00 17292 OHB-85 ll-135 7fH.OO 17298 04-2(1-f!'S IH36 W2.~.0 ?~t..'l (1~- 2�--85 !1-137 914 .~0 ]74�.4 (1 � �'(,� ~ [h ~fl 17479 0) -(ll �, : n � l~ ~145.20 !~l[\.1 1741:\0 0)-01�11'5 D�l40 :v~:~ 17�t87 (1)�07-8'5 D-141 ~ro.oo 17492 05-JO�B'S ll-142 781).71) 17494 05-10-85 ll-143 J, "'h. 00 17701 OS- 4-85 (1-144 1, ffj7. 00 17709 (1~-16-BS Tl-145 ], 1 '~. 5{1 17715 05�lB-B5 11-14�, �,~.6{1 17733 0 ~-27 -85 ll-147 %0.4{1 ,I tn39 (1 '1 � ~1 � ~ D�H8 77f,.( n- 19\(ll (I � IHI~ 4~ '199.~ 19002 0�.� 11�{15 ll�l~l 1, ~-tf).~.O Jq('(l? {lf,M}4�~5 ll� l~l :t5 �!'<l 19010 V(-.� 15� {1~ JH!'I~ - ~-::tl l9l114 r(,~ . ,.11!1 !I�J!f moo 784. ~(I 1~ US-24-flS !l-154 19028 C6-2i>-85 n-1ss m.~ 19939 11 -0J-85 D-193 841.00 19962 ll-05-85 [1-194 1, 335.90 10004 lHJll-85 [J-195 1, 347.10 20011 ll-11 -85 D-196 1,4.22.00 ~ ~. 8 4 .i

J)f�:C 1 S I ON -� G. T. A. CASE NU. 41'/2 - 12 - Jnuoict> D�3tP Oils and Bunker Av i a ti!m )lo. Shirpl'd Exh. Gitsolinl' lubrinmts Fut>l Oil Gasolint> 2001& 11 -14-85 11-197 l, (JJ5. 90 20020 11 - Hl-85 11-198 1,4B0.20 20029 11 -25�65 11-199 747.00 20034 ll-26-85 [1-200 1,1 14.50 20040 11-29-85 D-201 1,046. 90 19752 111-02-SS D-202 1, 471.30 }g7(18 HHI4-85 0�203 lt05. 80 .I 19712 Hl-07-85 [1-2(14 1.455.00 19721 111-Jt.-85 ()-205 1,145.50 1Cf7l3 1J-18-85 ll�2tlb 1,415.00 19724 l()-19 � 8~ lJ-207 '713. 30 l!fOV Hl�13�85 D�2ttl 797.il0 197:*' Hl-18-85 ll-2(19 1,376.40 19743 10-3{1-85 ll-210 J, 014. tXl 19745 10-31�85 P-211 790.10 19039 (17�03-85 D-212 850.70 1~0 (rl-OE.-85 [1�213 740.00 117-15-85 ll-214 J, 235.b0 1920:.l trl-l~H.15 ll-215 1,066.00 19212 1)7-24-85 D-21& 1,284.10 19225 1)8-01-85 D-217 961.50 19248 [)8-lb-85 [1-218 1,(133. 20 19240 O!Hl9�8~ D-219 1, 173. 50 1, 774.10 19249 00-17-RS It-no 19435 08-20-85 ll-221 654. 00 1~4�.1 09-(12-85 D�Z7J 1, 242.00 194(-3 09-03-llS 11-224 1.692.80 19493 09-1�,-85 11�225 1347.90 194% (19-19-85 Il-22h 799. 00 19704 09-24-85 D-227 31\0. 00 197(1(, 09�27-85 (l-228 J,COS.30 12-03-{15 U-229 1,398. 70 201JH 12-W-85 ll-230 12'�11�85 [1-231 872.00 20049 1,805. 00 ~3 2.fJ:-67 12-12�85 D-232 719.(1(1 2'03�.5 11.- 17-85 1,-423.70 2(13�,7 o-m l ,OJO.bO li-l8-~5 203�,9 1) -~4 lt70.00 12-21 �85 MO.JO WS9 ll-235 841.00 20390 12�29-85 ll-236 f.OO.Y.t L0384 12-29-85 ll- 237 9f:ib.OO 20499 11- l b - 85 12�27- LIS n~ns D-239 ztl~2 Cltl� l&-BS f-2 �,:,(! 19{173 08-0S��;5 F�4 1,26<1 28915 lH\5-llS P�ll (,3(1 49551 12-H-85 F-12 1, 2f,(l 842

DEt:J S HJN C. T. A. CA~;E NU. 41'/ 2 - l :J - Invoice Date Oils and BunkE'r Avi ation Mo. Sbippt>d Exh. GasolinP Lubricants Fuel Oil Gasol ine- 14503 03�15-85 F-28 ':ll IHO 210 7.1..000 81. 662.00 "~ 03S% OJ�OS-Il5 F-30 210 210 14541 04-23-115 F-34 210 14553 05-07 -!15 F-35 .. ~10 ,. 14549 05-0HI5 F�3b T 0 A 1.. s q~ o� CU~PUTAllOH PARflAL R~rUM Rased oP Sees. l, 2 an 5 of RA 1 4:1~ llsnut:Jr. ur \iuanH y St~�titi c Sp cif ic TaK Gt!soline n,, n.tiO L Tall ~1t~ P 7. 424. eo Oils and lubricants 5,04\).IIU L 0. 1~11. n.~ "r 0. HIL 352. 80 Bunker ftJPl llil 17?,000 ~ O.':ltN r l,ll'<QI I. t)OI IH 72.613 0. 091L Avi~t1on gasoline 81.662.00 L -~2.%._ Total spPC'fic ta~es pairl und~r Sees. 1 &2 Pl4,J8J. 24 "ultiply by pe-rcentage refundable under ~�Pr. . 5 - _�_25;._ AlfO'IHT REfUNOABLF. P 3,~92. B~ As reqards the 2 01. i nten?st per anntJm being cl;:)imed by petitioner. the rule jR that no intere t on re�und of ,;ol l eGtion ot thP t .;:~x w::ts e~t.t.enried by al-bit. re~rin~ sf? <Collectu � v . rj_ to. 11 >> Phil 90'7 ; 1 P CJner� v. S ugar� Cl?n l:raJ, 1 140 ; Comm�asioner o.f lnter nal. Hevenue v. American Rubber Co., 1~ SCRA H42 ~ At 1 as Fert.i 1 izer Cnrporat �on v. Go111missioner o.i: nternal. HPve>nue. lOU SCRA 556~ Shell. Phi.l.ippines, Inc. v. Centr?l Hank o� t.he PhilippinPs, 162 SCHA 62~). An act ion is U:) �c rtr itrary when exercised honestly and upon consideration where there is room �or two opinion?� 843

DEC IS UHI G. T. fl. CM;J�: NO. 4 J"I ..J. 14 - howevPr, much it rnay h bel eved an erroneous E'o::!chetl ( .... 1}. Mn reno, Phi. .lipp � n e L~v IJir.tionary l.Jrd l::ct. J. f' � ,'1 , <~-it ;nttl Imperi al Deve.lopment v. At ttY :t t 23, 1979). Ar .hi t-ra:r � r t?r:ts or disreqard of fYtttV � j Cl'rl � <V ctor�~s Mill ing Co .� Inc. v~ C .mm'n t}f) 'f' tlf 4 ~~( 1 ) . Non r-> ot n th e Hespondent's deciLJl nrt clai m :tnr refund wa s basFrl on <1JJ honest inte:rpre tat ion of law . I~ P . tl tereiure , see no rea!:1CIJJ why be Mn c f?(.'V""r , t he SuplE?TnP ill tlte Hi.n 'I u ba t. hP ~:.'~: I~~ sper� iii c HP.Eotution elAted !'l a-rch �,~ ~ �� r-l'-1 / ,. f1 liJfY ;-\). i or the co�:Jt ,.-, t s 11 i t c <'l r t C! <� ~ t_. P a w ;:~ r <I e d. ! I1P qnv<:.r n rnerd~ t: hal .l n<�t he Liable i o r the cos t.s n:f �'-il "t. s tt U 1e r wi ,. �� Revised Hulea o:! Convention o:f Philippine Ha'fli .:i~-l t:hurct es and the Gourt nf T~x 1\.ppeals, 2 SCRII lOl. �' 84~

P!-;1.: J ~; I ON - C. T. A. CASE Ni l . II J '/? 1 c1 r i. hPreby I i!<tdlTEI> . (I I{FFUNil in L=w or () t. r. mtt\ln 1 , 1 ( p u 1 � . ~ u ;::; n t.. t �:> q;;J:::;ol in e of Re pu b l ic Ar;t S U U lWt�:fml>. ~ .. ~ f:;; HN ES1'fl A. A C )1-)T A PTPC::i ti~ 11 ~ J u c1q"" WF: CUNt.: Uii: , ~. liR lJ HA o ci a .Judg e .:t~~ R 1\J''H nl il. f)F. �� A A e.~c:::of' � A t e Judo 845

llECl S LON -- t:. T . A. CASE NU. 41'/~! - lh - ER Tl.F:LCATION 1 hereby certi1y th at ~.1 t er du e consult at Jon arnnllq the lfl!>mt.to:ors of the Court of T~nc Appeal s i n acc c�rdance with !:-iE>cti on 1 : 1 Ar ic.l e VIl o1 the Constitut-ion. ~~tQ, ~ I�:H il E 4,jTfl h. .I\Cf1 L~1 .1\ Ju<in P P-r~=>c::idinn Apf' Pl'lls I :o u t of TRX I '; �" 846