52_Song Kiat Chocolate Factory v. CBP

STATCON

Doctrine: Strict construction of statutes

Title

GR No L#$$$$

SONG KIAT CHOCOLATE FACTORY V CENTRAL !ANK OF THE "HILI""INES

Date: NOVE%!ER &'( )'*+

ROGELIO M. JALANDONI, JALANDONI, appellant 

"onente: !ENG,ON( -

OFFICE OF THE SOLICITOR GENERAL AMBROSIO PADILLA & SOLICITOR JOSE P. ALEJANDRO, VICENTE GELLA, NET M. BALBAO & F.E. EVANGELISTA, CENTRAL BANK OF THE PHILIPPINES, appellee

Nature of t.e case: A case quest!""# $%et%e COCOA BEANS 'a( )e c!"s*ee* as +CHOCOLATE +CHOCOLATE -! t%e u!ses !- e/e't!" -!' t%e -!e#" e/c%a"#e ta/ '!se* )( RA 012 as a'e"*e*.

FACTS  -anuar/ $ 0 Octo1er '( )'*2 3 4a"t5 ae44a"t '!te* su" *e* c!c!a )ea"s, a("# 267 -!e#" ta/ 8RA 012 sec 29 3 u!" c4a'"# e/e't!" -!' RA 012 sect!" :, t sue* Ce"ta4 Ba"; !- t%e P%4"es 8CBP9 a"* t%e teasue !- t%e P%4"es

3 *e-e"*a"ts su)'tte* !" t'e a '!t!" t! *s'ss t%e case !" t%e #!u"*s !-< a. t%e c!'4a"t c!'4a"t state* "! cause !- act!" )ecause c!c!a )ea"s $ee "!t +c%!c!4ate ). t $as a sut a#a"st t%e #!=>t., $t%!ut t%e 4atte>s c!"se"t No3e41er )'( )'*2 3 HON. NARVASA S?STAINED THE MOTION AND DISMISSED THE CASE %a/ )'*5 Ae44a"t aea4e* a"* c!"te"*e* t%at t%e LO@ER CO?RT CO?RT ERRED IN DISMISSING  THE CASE a"* " %!4*"# t%at THE TERM +CHOCOLA +CHOCOLATE TE DOES NOT INCL?DE INCL?DE S?N DRIED COCOA BEANS

Ae44a"t qu!te* -!' t%e *ct!"aes a"* e"c(c4!e*as. et, et, t%e qu!tat!"s e-e t! +c!c!a as +c%!c!4ate "ut, +c%!c!4ate )ea" ! +c%!c!4ate tee. A"* LEGAL EEMPTION REFERS TO +CHOCOLATE +CHOCOLATE "!t t%e )ea", "ut ! tee. Au6ust )'*5 # C!"#ess a!=e* RA 226 a'e"*"# sect!" : )( S?BSTIT?TING +COCOA BEANS FOR +CHOCOLATE

Ae44ees c!"te"*e* t%at t%ee %as )ee" a c%a"#e !- 4e#s4at=e !4c(, "!t a *ec4aat!" ! qua4cat!" !- t%e e=!us C!"#ess!"a4 u!se

ISS7E8S WON the “cocoa benas” are considered as “chocolates” in order that the appellants be exempted from the foreign exchange tax imposed by the RA 601(amended! ha"ing in mind the principle of strict constr#ction of

stat#tes exempting from taxation$ # NO

RATIO

Kee"# " '"* t%e "c4e !- stct c!"stuct!" !- statutes e/e't"# -!' ta/at"#, t%e e9e4tion for ;c.ocolate< in t.e section & of RA =>) as a4en?e?( ?oes not inclu?e ;cocoa 1eans<. +c%!c!4ate s a 'a"u-actue* c!"su'e !*uct, $%4e +c!c!a )ea"s s a a$ 'atea4.  T%e C!"#ess %as a4ea*( a!=e* RA 226, a'e"*"# sect!" : 3 su)sttut"# +c!c!a )ea"s -! +c%!c!4ate. T%ee s a "e$ !4c( !- t%e #!=e"'e"t " e/e't"#, -! t%e st t'e, !- +c!c!a )ea"s, $%c% s t%e Pes*e"t>s P!c4a'at!" N!. 0:. It $as !'u4#ate* " Sete')e :, 2, ssue* " acc!*a"ce $t% RA 226 sec-("# t%at sai? e9e4tion of ;cocoa 1eans< s.all oerate fro4 an? after Sete41er 2( )>*5( not 1efore. As a u4e, statues !eate !sect=e4(. @HEREFORE t%e ORDER OF DIS%ISSAL IS AFFIR%ED, $t% COSTS AGAINST A""ELLANT. Notes RE"7!LIC ACT NO =>) 3 AN ACT TO IMPOSE A SPECIAL ECISE TA ON FOREIGN ECHANGE SOLD B THE CENTRAL BANK OF THE PHILIPPINES AND ITS AGENTS Sect!" 2 3 E/cet as %ee" !t%e$se !=*e*, t%ee s%a44 )e assesse*, c!44ecte* a"* a* a seca4 e/cse ta/ !- se=e"tee" e ce"tu' 82679 !" t%e =a4ue " P%4"e es! !-!e#" e/c%a"#e s!4* a"*! aut%!e* t! )e s!4* )( t%e Ce"ta4 Ba"; !- t%e P%4"es ! a"( !- ts a#e"ts *u"# t%e e!* !- t$! (eas c!u"te* -!' t%e *ate !- t%e a!=a4 !-  t%s Act. Sect!" : 3 T%e ta/ c!44ecte* u"*e t%e ece*"# sect!" !" -!e#" e/c%a"#e use* -! t%e a('e"t !- t%e c!st, ta"s!tat!" a"*! !t%e c%a#es "c*e"t t! '!tat!" "t! t%e P%4"es !- ce, !u, ca""e* '4;, catt4e a"* )ee-, ca""e* s%, s!(a )ea"s, )utte-at, c%!c!4ate, 'a4t s(u, ta!ca, sta)4e a"* a=!s, =ta'" c!"ce"tate, -et4e, !u4t( -ee* te/t)!!;s, e-ee"ce )!!;s, a"* su4e'e"ta( ea*es a!=e* )( t%e B!a* !" Te/t)!!;s a"*! esta)4s%e* u)4c ! =ate e*ucat!"a4 "sttut!"s "e$s"t '!te* )( ! -! u)4s%es -! use " t%e u)4cat!" !- )!!;s, a'%4ets, 'a#a"es a"* "e$saes )!!; ae, )!!; c4!t%, c% )!a* '!te* -! t%e "t"# !-  su4e'e"ta( ea*es 8a!=e* )( t%e B!a* !" Te/t)!!;s9 t! )e su4e* t! t%e G!=e"'e"t u"*e c!"tacts e-ecte* )e-!e t%e a!=a4 !- t%s Act, t%e qua"tt( t%ee!-  t! )e cete* )( t%e Dect! !- P"t"# a"est%etcs, a"t3)!tcs, =ta'"s, %!'!"es, 3 Ra( 4's, 4a)!at!( ea#e"ts, )!4!#ca4s, *e"ta4 su4es, a"* %a'aceutca4 *u#s "ecessa( -! c!'!u"*"# 'e*c"es 'e*ca4 a"* %!sta4 su4es 4ste* " t%e ae"*/ t! t%s Act, " qua"ttes t! )e cete* )( t%e Dect! !- H!sta4s as actua44( "ee*e* )( t%e %!sta4s a4("# t%ee-! *u#s a"* 'e*c"es 4ste* " t%e sa* ae"*/ a"* suc% !t%e *u#s a"* 'e*c"es as 'a( )e cete* )( t%e Seceta( !- Hea4t% -!' t'e t! t'e t! !'!te a"* !tect t%e %ea4t% !- t%e e!4e !- t%e P%4"es s%a44 )e e-u"*e* t! a"( '!te 'a;"# a4cat!" t%ee-!, u!" sats-act!( !!- !- actua4 '!tat!" u"*e t%e u4es a"* e#u4at!"s t! )e !'u4#ate* usua"t t! sect!" se=e" %ee!-. RE"7!LIC ACT NO ))'+ 3 AN ACT TO F?RTHER AMEND REP?BLIC ACT N?MBERED SI H?NDRED ONE, AS AMENDED B REP?BLIC ACT N?MBERED ELEVEN H?NDRED SEVENT3 FIVE Sect!" : 3 T%e "e$ e/e't!"s !=*e* -! " t%s a'e"*at!( Act s%a44 ta;e e5ect !"4( !" t%e *ates $%c% t%e Pes*e"t !- t%e P%4"es s%a44 / $%e" t%s u*#'e"t t%e "teest !- t%e "at!"a4 ec!"!'( a"* #e"ea4 $e4-ae s! eque.

L"; !- RA 012<

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