Return of the Confiscated Articles to the Possessor

November 6, 1959 BIR RULING NO. 618-59 The Regional Director B.I.R. Regional District No. 2 San Fernando, Pampanga S i r : In answer to your letter of May 18, 1959, please be informed as follows: Where a person not lawfully authorized to possess articles which are exempt from the specific tax is found in possession of such articles and the same were confiscated by agents of this Bureau, but the possession was, after investigation, duly established to be the result of a single and isolated transaction done in good faith and the value of the articles does not exceed one hundred pesos, the confiscated articles may be returned to the possessor without requiring him to pay the tax nor holding him liable to any penalty. However, distinction should be made between the goods intended for the United States Armed Forces (popularly known as PX goods) and those which are smuggled into the country. In the case of the latter, the same should be confiscated and forfeited to the Government, pursuant to section 172 of the said Code regardless of the value thereof. In this connection, please be informed that PX privileges are generally limited to the purchase of one article of a kind at a time and possession of several articles, say two or more cartons of cigarettes, indicates several transactions. Moreover, purchases for resale are not included in the "single and isolated transaction done in good faith" contemplated in Sections 125 and 174 of the Tax Code. In both cases, the corresponding taxes should be collected. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue