25% Compensating Tax — Industrial Roaster

August 13, 1979 BIR RULING NO. 072-79 25% Compensating tax industrial roaster This refers to your letter dated March 22, 1979 requesting reconsideration of our ruling contained in the Authority to Release Imported Goods No. IT-79-0001867 dated February 2, 1979 wherein your importation of 1 complete unit of industrial roaster was subjected to 25% compensating tax imposed by Section 204 in relation to Section 196, both of the Tax Code of 1977. In said letter for reconsideration, it is argued that although the gas roaster will be used by your company to roast nuts which is but one of the processes involved in food processing said imported article is not "the type used for cooking, warming, or keeping warm food or beverage for consumption on the premises." In reply thereto, please be informed that under Section 2(b)(5) of Department Order No. 17-78 roaster is classified as article similar or analogous to those enumerated in Section 1966 of the Tax Code of 1977, as amended. Since said department order does not qualify as to whether or not such roaster is the "type used for cooking, warming, or keeping warm food or beverage for consumption on the premises," then your importation of 1 complete unit of industrial roaster is subject to 25% compensating tax imposed by Section 204 in relation to Section, 196, both of the Tax Code of 1977, as amended, by P.D. No. 1358. casia Accordingly, your request has to be, as it is hereby denied for lack of legal basis.