Bais v. Trinidad

OSTRAND, J.:

This is an action to recover back merchants' percentage taxes collected from the plaintiff on consignment abroad under section 1459 of Act No. 2711, the Administrative Code of 1917, the defendant contending that the plaintiff is a "manufacturer" within the meaning of that section. The case went to trial upon the following stipulation of facts: Come now plaintiff, Central Azucarera de Bais , and the defendant, Wenceslao Trinidad, Collector of Internal Revenue, through their respective undersigned attorneys, and submit hereunto an Agreed Statement of Facts involved in the above-entitled cause, as follows: I. That plaintiff is a corporation existing under the laws of the Philippine Islands, and having its central office in the City of Manila, Philippine Islands; that the defendant is the duly appointed, qualified, and acting Collector of Internal Revenue of the Philippine Islands; II.

That plaintiff, at all times material to this action, was the owner of a sugar mill located at Bais, Oriental Negros, Philippine Islands, for the production of raw centrifugal sugar from sugar cane delivered to it, for milling, by sugar-cane growers having plantations in the neighborhood of plaintiff's mill; III. That all of the sugar produced at plaintiff's mill was made under milling agreements, with the sugar-cane growers, whereby plaintiff received as its share for milling the cane, forty-five per centum (45%) of the sugar produced; that the growers of the sugar cane received the balance of fifty-five per centum (55%) of the sugar so produced; IV. That during the times hereinafter set forth, to wit: A. The third quarter of the year 1920, plaintiff shipped from the Philippine Islands, for sale abroad, sugar of the aggregate value of ................

P384,495.00 B. The third quarter of the year 1920, plaintiff shipped from the Philippine Islands for sale abroad, additional sugar of the aggregate value of ................ 412,500.00 C. The second quarter of the year 1921, plaintiff shipped from the Philippine Islands, for sale abroad, sugar of the aggregate value of ................ 192,436.07 D. The third quarter of the year 1921, plaintiff shipped from the Philippine Islands, for sale abroad, sugar of the aggregate value of ................

699,627.18 E. The fourth quarter of the year 1921, plaintiff shipped from the Philippine Islands, for sale abroad, sugar of the aggregate value of ................ 38,168.16 F. The second quarter of the year 1922, plaintiff shipped from the Philippine Islands, for sale abroad, sugar of the aggregate value of ................ 758,083.00 G. The third quarter of the year 1922, plaintiff shipped from the Philippine Islands, for sale abroad, sugar of the aggregate value of ................

690.36 that all of the sugar so shipped by plaintiff, as aforesaid, represented and was the share of sugar received by plaintiff from the growers as its part of the product of the sugar-cane milled by plaintiff for said growers at its said mill; V. That the defendant, Wenceslao Trinidad, as Collector of Internal Revenue of the Philippine Islands, and claiming to act under authority of section 1459 of Act No. 2711, Administrative Code of 1917, levied and assessed against plaintiff a percentage tax of one per centum (1%) on the value of the sugar set forth in paragraph IV hereof as follows: A ................ P3,844.95 B ................ 4,125.00 C ................

1,924.36 D ................ 6,996.27 E ................ 381.68 F ................

7,580.83 G ................ 6.90