COMMISSIONER OF INTERNAL REVENUE, vs. RIO TUBA NICKEL MINING CORPORATION and THE COURT OF TAX APPEALS.
- G.R. Number: G.R. No. 83583-84
- Promulgated: 1992-03-25
- Ponente: Gutierrez, Jr., J.
Doctrine
Section 5 of R.A. No. 1435 was held to have been impliedly repealed by P.D. No. 711, which abolished all special and fiduciary funds.
A partial refund under Section 5 of R.A. No. 1435 partakes of the nature of a tax exemption and must be explicitly and categorically granted; therefore the basis for any refund is the amounts deemed paid under Sections 1 and 2 of R.A. No. 1435.
Granted refunds under this modification are to be computed as prescribed and are awarded without interest.
Facts
The Court previously ruled that Section 5 of R.A. No. 1435, granting lumber and mining companies a 25% refund of specific taxes on oils used in operations, was impliedly repealed by P.D. No. 711 abolishing special and fiduciary funds.
The private respondent (Rio Tuba) filed a claim for refund covering specific taxes paid from 1980 to July 1983 and sought recovery of amounts claimed as refund.
Specific taxes on oils paid in that period were based on the increased rates under Sections 153 and 156 of the National Internal Revenue Code of 1977 rather than the rates in Sections 1 and 2 of R.A. No. 1435.
A prior ruling held that the partial refund under Section 5 of R.A. No. 1435 is akin to a tax exemption and must be granted only in explicit, categorical language; refund basis is the amounts deemed paid under Sections 1 and 2 of R.A. No. 1435.
Issues
Whether Rio Tuba is entitled to a refund of specific taxes paid from 1980 to July 1983.
Whether the refund, if granted, should be computed on the basis of amounts deemed paid under Sections 1 and 2 of R.A. No. 1435 despite higher rates under the 1977 NIRC.
Ruling
The decision in G.R. Nos. 83583-84 is modified: Rio Tuba's claim for refund is granted, but not for the whole amount claimed; the refund is to be computed on the basis of amounts deemed paid under Sections 1 and 2 of R.A. No. 1435, and without interest.
Keywords
G.R. Nos. 83583-84, refund of specific taxes, manufactured oils and diesel fuel oil, Section 5 of Republic Act No. 1435, impliedly repealed, Presidential Decree No. 711, abolished all special and fiduciary funds, Highway Special Fund, General Fund, P.D. No. 1741, national internal revenue allotments, Section 2 of P.D. No. 1741, tax exemption, strictly construed against the taxpayer, Sections 1 and 2 of R.A. No. 1435, Insular Lumber Co. v. Court of Tax Appeals, 104 SCRA 710 (1981), National Internal Revenue Code of 1977, refund, private