July 6, 2001
Ponente: De Leon, Jr., J.
FACTS
Nestle Philippines was assessed with customs duties and advance sales tax by the Collector of the Customs of Manila. The company claimed that it overpaid, alleging that the Customs erroneously applied higher home consumption values in determining the dutiable value for each of the importations.
Nestle subsequently filed a claim for refund. The Collector failed to act on the claim. In its petition before the SC, the company was contending that the fact of overpayment of customs duties had already been duly established and resolved with finality in a previous case before the CTA.
RULING
The SC held for the CTA.
Nestle’s claim is not necessarily correct in light of the Tariff and Customs Code. Customs duties is the name given to taxes on the importation and exportation of commodities, the tariff or tax assessed upon merchandise imported from, or exported to, a foreign country.
Any claim for refund of customs duties, therefore, take the nature of tax exemptions that must be construed strictissimi juris against the claimants and liberally in favor of the taxing authority.
This power of taxation being a high prerogative of sovereignty, its relinquishment is never presumed. Any reduction or diminution thereof with respect to its mode or its rate must be strictly construed, and the same must be couched in clear and unmistakable terms in order that it may be applied.
