Presence of the Denaturing Committee in the Denaturing of the Rectified Alcohol

September 8, 1958 BIR RULING NO. 495-58 Republic Alcohol Distillery 273 F. Roxas, Grace Park Caloocan, Rizal Gentlemen : This is with reference to your letters, dated August 14 and September 1, 1958, requesting the presence of the Denaturing Committee to witness and supervise the denaturing of the following quantities of rectified alcohol: prcd Quantity to be Date of Letter Denatured August 14, 1958 33,000 gauge liters September 1, 1958 20,000 gauge liters In reply thereto, you are informed that your request is granted, subject, however, to the condition that you shall submit to this Office copies of the sales invoices showing your sale or disposition of the aforesaid denatured alcohol, and the acknowledgment of the receipt thereof by they buyer or purchaser. In this connection you are informed that henceforth denaturing of rectified alcohol shall not be authorized unless copies of the sales invoices covering the sales or disposition of the alcohol previously denatured by you are first submitted to this Office. Further in this connection, you are advised that pursuant to the decision of the Court of Tax Appeals in the case of La Tondea (C.T.A. Case No. 182, December 16, 1957, denatured alcohol is deemed used in industries only when they are used in the operation of industries and not merely as an ingredient in the manufacture of another product. Accordingly, the denatured alcohol which you sell to manufacturers, who use such alcohol as an ingredient of the products manufactured by them, are subject to the specific tax, which you must pay upon removal thereof from your distillery or bonded warehouse. LLpr Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue