BIR Ruling No. 329-61

1961 BIR RULING NO. 329-61 Messrs. Ross, Selph & Carrascoso P. O. Box 781 Manila Gentlemen : Reference is made to your letter dated August 14, 1961, requesting exemption from the specific tax of the specially denatured alcohol used by your client, the Philippines Manufacturing Company, in its manufacture of soap and shortenings. You explained that the denatured alcohol is used to free fatty acids in fats and oils, determine the specification value of oil, the completeness of specification of oil, the melting points or shortenings, the total fatty acid content of oil, the unsaponiable materials in soaps and oils, and the silicate lolid in synthetic detergents and fee NA 2 O (alkalinity) in soaps, as well as for washing purposes. In reply thereto, I have the honor to inform you that, it appearing from your explanation that the denatured alcohol is not an ingredient or raw material in the manufacture of soap and shortening and, therefore, not a component part of the manufactured articles, the same is considered as used in the industry within the contemplation of Section 128 of the Tax Code. Accordingly, it is exempt from the specific tax pursuant to the said Section 128. LexLib Very truly yours, (SGD.) MISAEL P. VERA Deputy Commissioner of Internal Revenue