BIR Ruling

March 4, 1976 Mr. Alberto A. Castillo Deputy Sheriff Office of the Sheriff Caloocan City S i r : This refers to your letter dated October 30, 1975 requesting authority and permission to remove from the premises of Philippine American Cigar And Cigarette Manufacturing Co.,Inc. at 354 Protacio St.,Pasay City, the following described properties of La Filipina Cigarette Factory, Inc.: cdtech One (1) unit Standard Cigarette Machine Trade Mark AMF Type 1-90 Serial No. 478 One (1) unit Motor Vehicle Chevrolet (Panel) Apache 30 which properties were attached/levied by your office on February 15, 1975, by virtue of a Writ of Attachment issued by the Hon. Fernando A. Cruz, Judge, Court of First Instance of Rizal, Branch XII, Caloocan City, in Civil Case No. C-3456, entitled, "LIGFINIA SIBAL vs. LA FILIPINA CIGARETTE FACTORY; et. al.," In reply, I regret to inform you that your request cannot be granted. Our record shows that La Filipina is indebted to the Republic of the Philippines in the amount of P27,000.00 as unpaid Tobacco Inspection Fees imposed by Section 302 of the Tax Code; that the payment of said indebtedness is guaranteed by a Chattel Mortgage of a cigarette filter attachment machine under Serial No. 586 which is a part of the cigarette machine being attached by you, that said Chattel Mortgage was executed on February 7, 1975, under Doc. No. 3115, Page No. 22, Book No. VII, Series of 1975 before Ruben Karunungan, Notary Public for and in the City of Manila; and that said indebtedness has not as yet been paid. It is, therefore, clear that the Chattel Mortgage in question, insofar as the cigarette filter attachment machine is concerned, is superior to the writ of attachment being enforced by you. Moreover, the records of this Office show that a notice of tax lien was filed with the Register of Deeds of Pasay City on January 13, 1975, establishing the lien of the abovementioned tax liability upon all the property and rights to property of La Filipina Cigarette Factory, Inc., in accordance with Section 315 of the Tax Code. Obviously, the lien of the tax is superior to the writ of attachment being enforced by you. aisadc Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3