BIR Ruling No. 122-62

November 16, 1962 BIR RULING NO. 122-62 The Security Industrial Co., Inc. (International Ceramics Manufacturing Co.) P. O. Box 3199, Manila Gentlemen : Reference is made to your letters dated April 25 and June 5, 1962, requesting in effect exemption from the sales tax on the sales of refractory and clay products manufactured by that company. From the papers submitted with your request, it appears that you manufacture glass, ceramic, porcelain, refractory and clay products; however, your request for exemption is limited to refractory and clay products, particularly firebrick and binding mortar. It further appears that as lessee of mineral lands, you are engaged in the quarrying of clay for use in the manufacture of those products and that more than 80% thereof are minerals produced from your mineral lands. In support of the latter, you submitted a certificate dated April 24, 1962 of the Assistant Director of Mines. In answer thereto, I have the honor to inform you that while clay is classified as mineral under section 20 of Commonwealth Act No. 137, the Mining Act, nevertheless, as firebrick is more of a manufactured article than a mineral product, your request for exemption thereof cannot be granted. It is, however, different in the case of binding mortar which, to all appearances, is a mineral product. Accordingly, said request insofar as concerns binding mortar, is hereby granted. prcd Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue