CIR v Pilipinas Shell

AT"OR: 01 G.R. No. 188497

February 19, 2014 N#TE$:

COMMISSIONER OF INTERNAL REVENE, Petitioner, vs. !ILI!INAS S"ELL !ETROLEM COR!ORATION, Respondent. TO!IC: Excise Taxes on Certain Goods - Nature of the Tax !ONENTE : VILLR!, "R.

Petrol oleu eum m Prod Produc ucts ts Sold Sold to Inte Intern rnat atio iona nall Se#$%o Se#$%o& & 1'(. 1'(. Petr Carriers and Exempt Entities or Agencies . - Petro%eu& Petro%eu& products so%d to the fo%% o'in( are exe&pt fro& excise tax: )a* Internationa% carriers of Phi%ippine or forei(n re(istr+ on their their use or consu consu&pt &ption ion outsid outside e the Phi Phi%ip %ippin pines: es: Provided, Provided, That the petro%eu& petro%eu& products products so%d to these these internationa% carriers sha%% e stored in a onded stora(e tan and &a+ e disposed of on%+ in accordance accordance 'ith the ru%es and re(u%ations to e prescried + the $ecretar+ of inance, upon reco&&endation of the Co&&issioner/

CASE LA)* +OCTRINE: 0nder $ection 123 of the NIRC, excise taxes are those app%ied to (oods &anufactured or produced in the Phi%ippines for do&estic sa%e or consu&ption or for an+ other disposition and to thin(s i &ported. Excise taxes as used in our  Tax  Tax Code fa%% under t'o t+pes 4 )1* speci5c tax 'hich is ased on 'ei(ht or vo%u&e capacit+ and other ph+sica% unit of  &easure&ent, and )2* ad va%ore& tax 'hich is ased on se%%in( price or other speci5ed va%ue of the (oods. viation fue% is su6ect to speci5c tax under $ection 178 )(* 'hich attaches to said product 9as soon as the+ are in existence as such.9 Eer-e&#y Re#%$ FACTS $he%% 5%ed a c%ai& for refund for excise taxes it paid on sa%es of (as and fue% oi%s to various internationa% carriers. carriers. The Court initia%%+ denied the c%ai&s ut the respondent 5%ed a !otion for Reconsideration. ISSE hether or not $he%% is entit%ed to refund for pa+&ent of the excise taxes concerned d 'ith the exe&pti exe&ption on of the artic%e itse%f and not the ostensi%e ostensi%e exe&ptio exe&ption n of the RLING ;es. $ection 1