DISPOSITIVE:
WHEREFORE, the Court GRANTS the instant Petition for Review on Certiorari, and REVERSES and SETS ASIDE the July 22, 2020 Decision and the February 18, 2021 Resolution of the Court of Tax Appeals En Banc in CTAE No. 2072. Accordingly, respondent Commissioner of Internal Revenue is ORDERED to refund or issue a tax credit certificate in favor of petitioner Petron Corporation in the total amount of’P219,153,851.00, representing the e oneously paid excise taxes on its importation of alkylate covered by Import Entry and Internal Revenue Declaration Nos. 122844547, 122773043, 1 4315222, 125253615, and 125644382.
SO ORDERED.
SUBJECTS/DOCTRINES/DIGEST:
Verily, since petitioner’s claim for tax refund is not in the nature of a tax
exemption, it is not burdened to prove that the legislature intended to exempt it
from tax clearly and distinctly, contrary to the CTA Special Second Division’s
ratiocination. To reiterate, alkylate is not among the articles covered by Sec.
148 (e) of the 1997 NIRC, as amended. Thus, in the absence of a law expressly
and unambiguously imposing excise tax on alkylate, the appropriate rule to be
applied is the strict interpretation in the imposition of taxes such that the statute
must be construed most strongly against the government and in favor of the
taxpayer. 37 Simply put, insofar as excise tax is concerned, non-taxability is the
rule, while taxability is the exception. Verily, since alkylate is not categorically
covered by Sec. 148 ( e) of the 1997 NIRC, as amended, the doubt should be
resolved in petitioner’s favor. As burdens, taxes should not be unduly exacted
nor assumed beyond the plain meaning of the tax laws. 38
TO READ THE DECISION, JUST CLICK/DOWNLOAD THE FILE BELOW. IF FILE DOES NOT APPEAR ON SCREEN GO TO DOWNLOAD. IT IS THE FIRST ITEM. OPEN IT.
NOTE: TO RESEARCH ON A TOPIC IN YAHOO OR GOOGLE SEARCH JUST TYPE “attybulao and the topic”. EXAMPLE: TO RESEARCH ON FORUM SHOPPING JUST TYPE “attybulao and forum shopping”.
J.A.B. Bulao & Associates 