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LA SUERTE CIGAR & CIGARETTE FACTORY, PETITIONER, VS. COURT OF APPEALS AND COMMISSIONER OF INTERNAL REVENUE, RESPONDENTS. [G.R. Nos. 136328-29] COMMISSIONER OF INTERNAL REVENUE, PETITIONER, VS. FORTUNE TOBACCO CORPORATION, RESPONDENT. [G.R. No. 144942] COMMISSIONER OF INTERNAL REVENUE, PETITIONER, VS. LA SUERTE CIGAR & CIGARETTE FACTORY, RESPONDENT. [G.R. No. 148605] STERLING TOBACCO CORPORATION, PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. [G.R. No. 158197] LA SUERTE CIGAR & CIGARETTE FACTORY, PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. [G.R. No. 165499] LA SUERTE CIGAR & CIGARETTE FACTORY, PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

LA SUERTE CIGAR & CIGARETTE FACTORY, PETITIONER, VS. COURT OF APPEALS AND COMMISSIONER OF INTERNAL REVENUE, RESPONDENTS. [G.R. Nos. 136328-29] COMMISSIONER OF INTERNAL REVENUE, PETITIONER, VS. FORTUNE TOBACCO CORPORATION, RESPONDENT. [G.R. No. 144942] COMMISSIONER OF INTERNAL REVENUE, PETITIONER, VS. LA SUERTE CIGAR & CIGARETTE FACTORY, RESPONDENT. [G.R. No. 148605] STERLING TOBACCO CORPORATION, PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. [G.R. No. 158197] LA SUERTE CIGAR & CIGARETTE FACTORY, PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. [G.R. No. 165499] LA SUERTE CIGAR & CIGARETTE FACTORY, PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

G.R. No. 125346 | 2014-11-11

EN BANC
 
DECISION

LEONEN, J.:

These cases involve the taxability of stemmed leaf tobacco imported and locally purchased by cigarette manufacturers for use as raw material in the manufacture of their cigarettes. Under the National Internal Revenue Code of 1997 (1997 NIRC), before it was amended on December 19, 2012 through Republic Act No. 103511 (Sin Tax Law), stemmed leaf tobacco is subject to an excise tax of P0.75 for each kilogram thereof.2 The 1997 NIRC further provides that stemmed leaf tobacco — “leaf tobacco which has had the stem or midrib removed”3 — “may be sold in bulk as raw...