Intended Sale at Public Auction of Smuggled Assorted American Cigarettes

August 6, 1958 BIR RULING NO. 445-58 MEMORANDUM FOR: The Revenue Operation Executive (Assessment) B.I.R., Manila This is in connection with the intended sale at public auction of 371 cartons of smuggled assorted American cigarettes, to be made by the Regional Director of B.I.R. Regional District No. 10, Davao City, which was referred to the Law Division for a ruling on the legality of the aforesaid sale at public auction. cdt Section 313 of the National Internal Revenue Code reads as follows: "SEC. 313. When property to be sold or destroyed . Sales of forfeited chattels and removable fixtures shall be effected, so far as practicable, in the same manner and under the same conditions as to public notice and the time and manner of sale as are prescribed for sales of personal property distrained for the non-payment of taxes. "Distilled spirits, liquors, cigars, cigarettes, other manufactured products of tobacco, and playing cards, and all apparatus used in or about the illicit production of such articles may, upon forfeiture, be destroyed by order of the Collector of Internal Revenue, when the sale of the same for consumption or use would be injurious to the public health or prejudicial to the enforcement of the law. "All other articles subject to specific tax, which have been manufactured or removed in violation of this Code, as well as dies for the printing or making of internal-revenue stamps, labels and tags which are in imitation of or purport to be lawful stamps, labels, or tags may, upon forfeiture, be sold or destroyed in the discretion of the Collector of Internal Revenue. "Forfeited property shall not be destroyed until at least twenty days after seizure." LibLex Under the above quoted provisions of the Tax Code, the Collector (now Commissioner) of Internal Revenue may sell forfeited cigarettes if the consumption thereof would not be injurious to the public health and such sale would not be prejudicial to the enforcement of the law. The cigarettes in question were forfeited by the Government because they were smuggled into the country. They are now being sold in payment of taxes legally due thereon. It may also be presumed that the cigarettes which are still in sealed boxes are in good condition. In view of the foregoing, this Office is of the opinion that the intended sale of the forfeited cigarettes by the Regional Director of Davao City who is the representative of the Commissioner of Internal Revenue in that district is legal. (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue