Atlas Consolidated Mining Development Corp. v. Commissioner of Internal Revenue

[CA-G.R. SP No. 27676. March 31, 1993.] (C.T.A. Case Nos. 2840, 3091, 3426 & 3696) ATLAS CONSOLIDATED MINING DEVELOPMENT CORPORATION , petitioner , vs . COMMISSIONER OF INTERNAL REVENUE AND COURT OF TAX APPEALS , respondents . D E C I S I O N PARAS , J p : In this petition for review, the petitioner seeks to set aside the decision dated December 24, 1991 rendered by the respondent Court of Tax Appeals (respondent court for short) in CTA Case Nos. 2840, 3091, 3426 and 3696, entitled "Atlas Consolidated Mining and Development Corp. vs. Commissioner of Internal Revenue", denying petitioner's various claims for refund or tax credit. On various dates, the petitioner which is engaged in the activity of mining in Toledo City, purchased from Petrophil Corporation and Mobil Oil Philippines, manufactured oils and fuels wherein specific taxes due thereon had been paid in the total amount of P27,662,185.23. Relying on the provisions of Section 5 of Republic Act No. 1435 in relation Sections 142 and 145 of the Old Code (now Sections 153 and 156 of the 1977 Tax Code), the petitioner filed before the Commissioner of Internal Revenue, its claims for tax credit allegedly representing 25% of specific taxes paid on manufactured oils and fuels used in mining operations. Without waiting for the decision of the BIR Commissioner on its claims for refund, the petitioner filed before the respondent court the aforesaid CTA cases which were consolidated and decided on December 24, 1991, the said court denying the claims for refund. Basis of the respondent court's decision is the ruling of the Supreme Court in the case of Commissioner of Internal Revenue vs. Rio Tuba Nickel Mining Corporation and Court of Tax Appeals (GR Nos. 83583-84, September 30, 1991), that the refund privilege granted under Section 5 of RA 1435 has been repealed with the issuance of PD No. 711 which took effect on July 1, 1975, abolishing all special and fiduciary funds. The petitioner, in the instant petition, contends that the respondent court erred in using as basis for its decision, the Supreme Court decision in Rio Tuba case for the latter decision was nit yet final and executory when the respondent court rendered its decision on the CTA cases; and that the said Supreme Court decision (in the Rio Tuba case) was modified in its resolution of March 25, 1992, which in effect granted the Rio Tuba's claim for refund on tax credit. A significant fact relative to the present CTA cases is that the Supreme Court in its further resolution of June 15, 1992 in the aforesaid Rio Tuba case granted Rio Tuba a refund on the basis of Section 5, RA No. 1435. Said Supreme Court resolution became final and executory on June 25, 1992. The Rio Tuba case is similar to the instant cases as the former also involved a claim for refund or tax credit on the basis of Section 5, RA 1435 representing 25% of the specific taxes collected on the refined and manufactured mineral oils, motor fuel and diesel fuel oils that Rio Tuba had utilized in its operation as a mining concessionaire. Thus, the petitioner court's decision of December 24, 1991 should be SET ASIDE. The instant tax cases should be remanded to the respondent court for proper evaluation of the petitioner's evidence to determine the total amount of specific taxes and the 25% refund or tax credit based on the specific tax rates prescribed in Sections 1 and 2 of RA 1435 in view of the allegation of the petitioner in the instant petition that the respondent court failed to consider certain exhibits or cited wrong exhibits. WHEREFORE, the petition is GRANTED and the questioned decision of the respondent court is hereby SET ASIDE. The herein tax cases are ORDERED REMANDED to the respondent court for a proper determination of the total amount of specific taxes paid and the corresponding tax refund or credit to which the petitioner is entitled. SO ORDERED. Victor and Martin, JJ., concur.