Tax Imposed on the Shipment of Food and Beverage Processing Machinery and Parts

August 28, 1958 BIR RULING NO. 471-58 The Aristocrat Restaurant Dewey Boulevard Manila Gentlemen : In reply to your letter dated August 22, 1958 requesting reconsideration of the action of this Office in authorizing the release of your two shipments of food and beverage processing machinery and parts upon payment of the 30% compensating tax prescribed by Section 190, in relation to Section 185(i) of the National Internal Revenue Code, I have the honor to inform you that this Office cannot find its way clear to reversing itself. Section 185(i) reads as follows: "Electric fans are air circulators (Except those specially adopted for industrial use); electric, gas or oil water heaters; electric flat irons, electric, gas or oil appliances of the type used for cooking, warming, or keeping warm food or beverage for consumption on the premises ; electric mixers, whippers, and juicers; and household type electric vacuum cleaners;" (Emphasis supplied) The elements of the underscored portion may be dated as follows: a. The appliance in question is operated by electric, gas or oil power; b. That said appliance will be used for the warming or for keeping warm food or beverage; and c. That such food or beverage will be for consumption in the place where the said appliance is located. A cursory examination of the description of the said appliance, particularly the phrase "Coffee making machine" has resulted to the conclusion that your importations possess all the characteristics of the type of appliance which is taxed at 30% under Section 185(i) of the Tax Code. In view thereof, your request for reconsideration has to be as it is hereby period. cdpr Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue