Commission of Internal Revenue vs La Campana Fabrica De Tabacos, Inc.

COMMISSIONER OF INTERNAL REVENUE, petitioner, vs. LA CAMPANA FABRICA DE TABACOS, INC., respondent.

G.R. No. 145275 | 2001-11-15

D E C I S I O N

PARDO, J.:

The Case

Appeal via certiorari from the decision of the Court of Appeals[1] affirming the decision of the Court of Tax Appeals canceling the assessment issued against respondent for deficiency specific tax on stemmed leaf tobacco in the amount of P2,785,338.75, covering the period from January 1, 1986 to June 30, 1989.

The Facts

The facts, as found by the Court of Appeals, are as follows:

Respondent is a domestic corporation engaged in, among others, the importation and local purchase of stemmed leaf tobacco which it uses as raw material in the production and manufacture of cigar and cigarettes.

On January...