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Commissioner of Internal Revenue vs. Republic Cement Corp., et al.

COMMISSIONER OF INTERNAL REVENUE, petitioner, vs. REPUBLIC CEMENT CORPORATION, FILIPINAS CEMENT CORPORATION, APO CEMENT CORPORATION, BACNOTAN CONSOLIDATED INDUSTRIES, INC., RIZAL CEMENT COMPANY, INC., PHILIPPINE PORTLAND CEMENT CO., INC., and THE COURT OF TAX APPEALS, respondents.

G.R. No. L-35668-72 | 1983-08-10

D E C I S I O N


PLANA, J.:

The sales tax assessments involved in these cases run to a magnitude of about P38.5 million. 1

Briefly put, the crucial issue is whether cement is a "mineral product" the sale of which is exempt from sales tax, or a "manufactured product" which is subject to sales tax.

Petitioner Commissioner of Internal Revenue had ruled that cement is a "manufactured product" and therefore subject to sales tax.

On appeal, this ruling was overruled by the Court of Tax Appeals (CTA) which adjudged cement to be a "mineral product" within the meaning of Section 246 of the Tax Code and consequently exempt from sales tax under...