CIR v CA G.R. No. 107135.docx - CIR v CA CENTRAL VEGETABLE...

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CIR v. CA CENTRAL VEGETABLE MANUFACTURING CO.[ GR No. 107135, Feb 23, 1999 ]TOPIC: STATUTORY CONSTRUCTION; EXCEPTIONS, AS AGENERALRULE, SHOULD BE STRICTLYCONSTRUED; THE EXCEPTION PROVIDED FOR IN SECTION 168OFTHEOLD TAX CODESHOULDBE STRICTLY CONSTRUED. — Under the rulesofstatutory construction, exceptions, asageneralrule, should be strictly but reasonably construed. They extend only so far as theirlanguage fairly warrants, and all doubts should be resolved in favorofthegeneralprovisionsrather than the exception.Where ageneralrule is established by statute with exceptions,thecourtwill not curtail the former nor add to the latter by implication. The exception providedfor in Section 168oftheold Tax Codeshould thus be strictly construed. Conformably, the sales,miller's and excise taxes paid on all other materials (except on raw materialsused in the millingprocess), such as the sales taxes paid on containers and packaging materialsofthe milledproducts under consideration, may be credited against the miller's tax due therefor.FACTS:Private respondent Central Vegetable Oil Manufacturing Co., Inc. (CENVOCO) is amanufacturer of edible oil and coconut, coprameal cake and such other coconut related oilsubject to the miller tax of 3%. In 1986, CENVOCO purchased a specified number of containersand packaging materials for its edible oil from its suppliers, and paid the sales tax due thereon.After an investigation by the Revenue Examiner, CENVOCO was assessed for deficiency miller'stax in the total amount of P1,575,514.70.CENVOCO wrote petitioner a letter requesting forreconsideration, contending that the final provision of Section 168 of the Tax Code does not

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