Refund Request of Emilia L. Siqua of the Sales Tax on the Cost of Raw Materials

January 9, 1958 BIR RULING NO. 022-58 Mr. Crispin Llamado Attorney-at-Law Room 201-202 Goiti Bldg. Manila S i r : In reply to your request for refund of the sales tax allegedly overpaid by your client Emilia L. Siqua, 726 P. Herrera, Manila, on raw materials used in the manufacture of undershirts, which were purchased from tax-exempt producers, I have the honor to inform you that, following the decisions is BTA Case No. 187, entitled "Rufina & Company vs. David" and CTA Case No. 14, entitled "Ngo Siek vs. Collector of Internal Revenue", this Office ruled that effective November 1, 1955, the cost of raw materials purchased from tax-exempt industries and used in the manufacture of articles was not deductible from the gross selling price of the manufactured products. It appearing that the taxes sought to be refunded were paid beginning April 20, 1956 to December 10, 1956 and January 10, 1957 to May 10, 1957, and inasmuch as Republic Act 2025 became effective only beginning June 22, 1957, I regret to inform you that your request cannot be granted. Very truly yours, (SGD.) JOSE ARAAS Collector of Internal Revenue