BIR Ruling No. 028-65

April 27, 1965 BIR RULING NO. 028-65 The Shell Refining Co. (Philippines) Incorporated P. O. Box 441 M a n i l a Gentlemen : This refers to your letter dated February 17, 1965 requesting reconsideration of B.I.R Ruling No. 64-082, s. 1964 holding that solvent SBP 55/145 is a product taxable under Section 142(c) of the Tax Code and therefore, subject to the specific tax at the rate of eight centavos (P.08) per liter of volume capacity. You contend that the said product should not be so classified because it is an industrial solvent used in non-fuel applications and unlike gasoline, is not used as motor fuel. It would thus appear that you are of the opinion that only products used as fuel or motor fuel are taxable under Section 142 of the Tax Code. Your opinion, however, has no legal basis. For nowhere in the said law is there any provision limiting the products taxable under it to those used as fuel or motor fuel. On the other hand, lubricating oils, which are not used as fuel or motor fuel, are specifically taxed under the aforesaid law, clearly showing that the products taxable under it are not limited to those used as fuel or motor fuel. Neither does the law limit the products taxable under it to those specifically mentioned therein. In fact, subsection (c) of Section 142 expressly taxes under it " Naphtha , gasoline and all other similar products of distillation ". As laboratory tests and analysis show that your product SBP 55/145 is similar to naphtha, it has been correctly classified under Section 142 of the Tax Code. In the light of the foregoing, your request for reconsideration of BIR Ruling No. 64-082 has to be, as it is hereby, denied. Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue