Taxability of the By-product of Manufactured Ilang-Ilang Oil

November 10, 1958 BIR RULING NO. 663-58 Mr. Burt H. Raymond, Jr. 1805 Georgia St., Malate Manila S i r : With reference to your letter dated September 4, 1958, I have the honor to inform you that the by-product of manufactured ilang-ilang oil referred to by you as "the cooked flowers, which now become a sterile compost used for growing mushrooms" when sold is subject to the 7% sales tax provided for under Section 186 of the Tax Code. With respect, however, to the other by-product which you referred to as "the condensed steam which acted as vehicle to carry the oil and which becomes water containing the odor of the oil", the same may be treated as another essence of a lower grade, and as such will be subject to the 50% sales tax provided for under Section 184 of the Tax Code when sold. LexLib Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue