Customs v. Court Of Tax Appeals

GRINO-AQUINO, J.:

This is a petition for review of the decision dated October 16, 1980 of the Court of Tax Appeals in CTA Case No. 2634 modifying the decision dated September 27, 1974 of the Commissioner of Customs and changing the classification of the private respondent's importation of refractory materials resulting in the reduction of the tariff thereon. The Court of Tax Appeals made the following findings of facts: As borne out by the records, petitioner Jardine Davies, Inc. (formerly Theo H. Davies & Co., Far East, Ltd.) is a corporation organized and existing under the laws of the Philippines, with principal office and place of business at Jardine Davies Building, 222 Buendia Avenue, Makati, Metro Manila. It was, and still is, an importer of refractory materials supplied by Morgan Refractories Ltd., in Liverpool, England.

On two separate occasions, petitioner imported refractory materials abroad (sic) the S/S "Puerto Princesa" and the S/S "Ebani"; which arrived at the Port of Manila on May 8, 1973 and June 22, 1973, and covered by Entry Nos. 28674 and 39634, both series of 1973. Alleging over-assessment and payment of customs duties and advance sales tax by the Collector of Customs of Manila on these two separate shipments, petitioner filed Manila Protest No. 8902 and Manila Protest No. 8903.

The particulars of the shipments involved in Manila Protest Nos. 8902 and 8903, as stated in the decision of the Collector of Customs of Manila dated April 8, 1974, are as follows: (pp. 37-38, Customs records). Manila Protest No. 8902 That a shipment, consisting of 182 packages of refractory constructional goods marked "T.H.D. 869 E. Makati, Rizal," consigned to the herein protestant arrived at this Port on May 8, 1973 from Liverpool aboard the SIS "Puerto Princess,"

Reg. No. 777, under the Bill of Lading No. M-51; that the said shipment was declared under Entry No. 28674, Series of 1973, under Tariff Heading 69.02 at 10% ad valorem ; however, the customs appraiser concerned, appraised the said shipment under Tariff Heading 38.19-B at 50% ad valorem ; and because of this the amount of P54,587.00, representing additional duty, tax and other charges, was paid as evidenced by Central Bank O.R. No. 205459 dated June 19, 1973. This assessment was contested by the protestant claiming that the duty and tax should have been based on Tariff Paragraph 69.02 at 10% ad valorem and the corresponding Protest was filed for the refund of the sum of FIFTY FOUR THOUSAND FIVE HUNDRED AND EIGHTY-SEVEN (P 54,587.00) PESOS; and MANILA PROTEST NO.

8903 That a shipment consisting of 126 packages of refractory constructional goods marked "T.H.D. 870-E, Makati, Rizal," consigned to the herein protestant arrived at this Port on June 16, 1973 from Liverpool aboard the S/S "Ebani," Reg.

No. 1027, under Bill of Lading No. M-138; that the said shipment was declared under Entry No. 39634, Series of 1973, under Tariff Heading 69.02 at 10% ad valorem ; however, the appraiser concerned appraised the said shipment under Tariff Heading 38.19-B at 50% ad valorem ; and because of this, the amount of P19,967.00, representing additional duty, tax and other charges, was paid as evidenced by Central Bank O.R. No. 205493 dated June 22, 1973. This assessment was contested by the protestant claiming that the duty and tax should have been based on Tariff Paragraph 69.02 at 10% ad valorem and the corresponding Protest was filed for the refund of the sum of NINETEEN THOUSAND NINE HUNDRED AND SIXTY-SEVEN (P19,967.00) PESOS. The parties are not in dispute on the computation of the customs duty and advance sales tax paid by, or amount refundable to, petitioner as the case may be.

As itemized by petitioner, which is not disputed by respondent, the following is the computation of the amounts of customs duty and advance sales tax being claimed by petitioner as refundable in case the shipments in question should be classified under Tariff Heading 69.02 at 10% ad valorem as claimed by it instead of Tariff Heading 38.19-B at 50% ad valorem as applied by respondent: 126 pkgs. Refractory Materials ex S/S Ebani, B/L No. M138, Reg. #1027 Entry No. 39634 (1973) - O/R No. 205493 - P29,725.00 10% 50% Difference CUSTOMS DUTY P4,590.00 P22,951.00 P18,361.00 ADVANCE SALES TAX 4,828.00 6,434.00 1,606.00