G. R. No. 207843

CIR vs Court of Tax Appeals and Petron Corp

G. R. No. 207843

Facts:

Petron is engaged in the manufacture and marketing of petroleum products, imports alkalyte as a raw material or blending component for the manufacture of ethanol-blended motor gasoline. The CIR has ruled that alkalyte is exempt from the payment of the excise tax because it was not among those articles enumerated as subject to excise tax under the Title VI of the Republic Act No. 8424 or the 1997 NIRC.

Issue:

Whether or not it is under the jurisdiction of the CIR to interpret tax laws.

Held:

Yes, it is under the jurisdiction of CIR to interpret tax laws. According to Section 4 of the Tax Code, on the Power of the Commissioner to Interpret Tax Laws and to Decide Tax Cases. The power to interpret the provisions of this Code and other tax laws shall be under the exclusive and original jurisdiction of the Commissioner, subject to review by the Secretary of Finance.

The power to decide disputed assessments, refunds or internal revenue taxes, fees and other charges, penalties imposed in relation thereto, or other matters arising under this Code or other laws or portions thereof administered by the Bureau of Internal Revenue is vested in the commissioner, subject to the exclusive appellate jurisdiction of the Court of Tax Appeals.

Applying the principle of ejusdem generis, the phrase 'other matters arising under this Code' should be interpreted as of the same nature as those that have preceded them. As such, the CIR was correct in its interpretation of Section 148 (e) of the NIRC to include alkalyte among the articles subject to customs duties, as it is provided in the first paragraph of Section 4 that the interpretation of the same is under the original jurisdiction of the CIR.

G.R. No. 180235

Alta Vista Golf and Country Club vs City of Cebu

G.R. No. 180235

Facts:

A golf course has been operated in the city of Cebu for 5 years already. The local government has promulgated a law for imposing tax on amusement places in their jurisdiction.

Issue:

WON golf course is to be considered an amusement place

Held:

Golf course cannot be considered as an amusement place and is therefore not subject to amusement tax. According to Section 140 of the Local Government Code on amusement tax, the province may levy an amusement tax to be collected from the proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses, boxing stadia, and other places of amusement

In applying the principle of ejusdem generis, where a general word or phrase follows an enumeration of particular and specific words of the same class or where the latter follows the former, the general word or phrase is to be construed to include, or to be restricted to persons, things or cases akin to, resembling, or of the same kind or class as those specifically mentioned. A golf course is not similar to that of the expressly provided amusement places as it cannot be considered as an amusement place in itself. An amusement place is defined as a place where people enter to witness a show or a performance.