"Processed Coffee Products" Not within Purview of the Term "Processed Fruits and Vegetables"

August 20, 1975 BIR RULING NO. 004-75 "Processed coffee products" not within purview of the term "processed fruits and vegetables ." This refers to BIR Ruling No. 73-029, dated October 22, 1973, issued to you, wherein we ruled that coffee beans fall under the purview of fruits and vegetables under Section 186-B(a) of the Tax Code and, therefore, the processed coffee products of your client produced from coffee beans which have undergone the stages of drying, roasting and finally grinding, are subject to the 5% sales tax prescribed in Section 186-B of the Tax Code. In this connection, you are advised that after research and a careful re-examination of the facts and applicable jurisprudence, this Office arrived at the conclusion that processed coffee products of your client do not fall within the purview of the term "processed fruits and vegetables" under Section 186-B of the Tax Code and that therefore, they are subject to the 7% sales tax under Section 186 of the same Code. This revokes BIR Ruling No. 73-029 dated October 22, 1973. cdasia