Failure to Have the Tank Trucks Sealed and Licensed Prior to Use

October 5, 1959 BIR RULING NO. 528-59 Standard-Vacuum Oil Company P. O. Box 436, Manila Gentlemen : Reference is made to your letter dated July 24, 1959, requesting that this Office waive the imposition of a compromise penalty and surcharge for your failure to have the tank trucks being used by that company for delivering gasoline to its dealers sealed and licensed prior to their use, pursuant to section 277, in relation to section 288 of the Tax Code. In support of said request, you stated that such failure on your part was unintentional and in good faith, without any desire to violate the National Internal Revenue Code. In answer thereto, I have the honor to inform you that, pursuant to paragraph VI, subparagraph 1(a), of General Circular No. V-240, implementing the penal provisions of the Tax Code on weights and measures fees, any person making a practice of buying or selling goods by weight or measure who uses any instrument of weight or measure which has not been previously sealed shall, if such instrument is accurate, be liable to a compromise penalty of P10.00 for every P100.00 daily sales, or fractional part thereof, such penalty not to exceed P300.00. However, if the instrument is inaccurate, a compromise penalty of P20.00 for every P100.00 daily sales, or fractional part thereof, but likewise not exceeding P300.00, is imposed. Such being the case, it is regretted that your request has to be, as it is hereby denied. It may be stated that in the imposition of the aforesaid penalty, the total sales of all the tank trucks, and not of each truck, shall be considered. It may be stated further that to fall within the penal provisions of section 288 of the Tax Code, it is enough that a person making a practice of buying or selling goods by weight or measure uses any instrument of weight or measure which has not been previously sealed, intention and good or bad faith being immaterial. aisadc Finally, no surcharge is due for the violation in question. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue