LPG Cylinders or Containers Not Parts of Accessories of Gas Stoves Subject to Only 7% Sales Tax

June 26, 1968 BIR RULING NO. 009-68 Sycip, Gorres, Velayo & Co. Certified Public Accountants P. O. Box 589 M a n i l a Attention : Mr . M . Gutierrez Tax Department Gentlemen : This refers to your letter dated January 22, 1968 requesting reconsideration of BIR Ruling No. 67-040 subjecting imported LPG cylinders to 30% advance sales tax as an accessory of gas stove in accordance with Section 185(i) of the Tax Code. In support of your request for the consideration of the aforecited ruling, you stated, among others, that the representations which served as the basis in the promulgation of the ruling in question are not altogether correct; that the cylinders or containers cannot be considered as parts or accessories of gas appliances for tax purposes, considering the multiple uses for which the same is adaptable; that these cylinders or containers are independent articles by themselves; that the said cylinders or containers are not used exclusively for gas appliances used for cooking, warming or cooling purposes; and that neither can it be said that the said cylinders are primarily adapted for use only in gas appliances. You also alleged that subject cylinders or containers which are designed and built to withstand a certain internal gaseous pressure are equally adapted to a variety of uses, such as pressure containers for ammonia, freon, compressed air, and other types of gaseous substance. It is also represented that the said gas appliances sold by manufacturers or dealers need not necessarily have LPG cylinders as containers for fuel; that the gas appliances can be operated from piped gas main coming from a city gas reticulation system such as Manila Gas pipeline or other vaporized hydrocarbons, like solvents and gasoline. You also contend that considering that the LPG cylinders or containers are adaptable to a great variety of uses other than with the gas appliances for cooking, warming or cooling purposes, the same therefore cannot be considered parts of accessories of the said gas appliances, notwithstanding the fact that the largest users of such cylinders are gas appliance owners. In support of this contention, you cited American authorities to the effect that articles equally adapted and commonly used for a variety of purposes are not considered parts or accessories. It is further contended that if the cylinders or containers should be considered at all an accessory, the same should be considered as an accessory of the product or substance they contain. And inasmuch as the liquefied petroleum gas is subject to only 7% sales tax, the cylinders used as containers should necessarily be subject to only 7% sales tax. In reply, I have the honor to inform you that under the foregoing circumstances, the LPG cylinders or containers are not in reality parts of accessories of gas stoves, hence, the same are considered as independent articles. Such being the case, they are subject to only 7% sales tax under Section 186 of the Tax Code. aisadc This supersedes BIR Ruling No. 67-040. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue