October 29, 1968
Ponente: Fernando, J.
FACTS
Resins, Inc. filed a claim for refund from the Central Bank on the claim that it was exempt from the margin fee under R.A. 2609 for the importation of urea and formaldehyde, as separate units, used for the production of synthetic glue of which it was a manufacturer.
The Auditor General and the Central Bank denied the claim, ruling that only urea formaldehyde, not urea and formaldehyde as separate units, is exempt from margin fee.
RULING
The SC ruled for the Central Bank.
SC agreed with the Auditor General and the Central Bank that Resins, Inc. is not exempt from payment of the margin fee and likewise not entitled to refund. As previously held in the case of Casco Philippine Chemical Co., Inc. v. Gimenez, R.A. 2609 provided that “urea and formaldehyde” is different from “urea formaldehyde.”
As only urea formaldehyde is covered by the margin fee exemption under the Act, Resins, Inc., as a manufacturer of urea and formaldehyde, as separate units, cannot claim such exemption.
