8/9/2019 31 La Carlota Sugar Central v. Jimenez (GR L-12436, 31 May 1961)

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Republic of the PhilippinesSUPREME COURTManila

EN BANC

G.R. No. L-!"#$ Ma% #& '$

LA CARLOTA SUGAR CENTRAL an( EL)*AL+E , CO.& )NC.& petitiones-appellants&s.PE+RO /)MENE*& AU+)TOR GENERAL O0 T1E P1)L)PP)NES& espon(ent-appellee.

Pacifico (e Oca2po fo petitiones-appellants.Office of the Solicito Geneal fo espon(ent-appellee.

+)*ON& /.3

So2eti2e in Septe2be& '44 La Calota Su5a Cental 6 a (o2estic copoation heeinafte efee(to as the Cental& 2ana5e(& contolle( an( opeate( b% Eli7al(e , Co.& )nc.& efee( to heeinafte asEli7al(e& i2pote( 488 shot tons of a22oniu2 sulphate an( #48 shot tons of a22oniu2 phosphate.The coespon(in5 lette of ce(it in the su2 of 9$8&'#8.88& U.S. cuenc%& :as opene( thou5h the1on5;on5 , Shan5hai Ban;in5 Copoation in the na2e of the Cental an( in fao of the OeseasCental Entepises& )nc.& " Batte% St.& San 0ancisco & Califonia& U.S.A. The inoices& bill ofla(in5& an( all othe papes inci(ent to sai( i2potation :ee also in the na2e of the Cental.

!.8' ?Anne@es B an( C attache( to the Petition fo Reie:.

On Noe2be =& '44 the Cental file(& thou5h the 1on5;on5 , Shan5hai Ban;in5 Copoation& apetition fo the efun( of the P!8&=>!.8' pai( as aboe state(& clai2in5 that it ha( i2pote( thefetili7es 2entione( heetofoe upon euest an( fo the e@clusie use of fie hacien(as ;no:n asEspean7a& Nahalin& Dalencia 6 o:ne( b% Eli7al(e 6 Consuelo an( Maa%on& these last t:o2ana5e( b% the sa2e co2pan%& an( theefoe the i2potation :as e@e2pt fo2 the > e@chan5e ta@in acco(ance :ith Sec. !& Rep. Act $8& as a2en(e( b% Act #>4. The Au(ito of the Cental Ban;&ho:ee& (enie( the petition on /ul% !& '4$. The Cental eueste( the Au(ito to econsi(e hisulin5& but afte a ee@a2ination of all petinent papes the econsi(eation :as (enie(. The Centalthen appeale( to the Au(ito Geneal of the Philippines& :ho on /anua% =& '4>& affi2e( the ulin5of the Au(ito of the Cental Ban; upon the 5oun( that the i2potation of the fetili7es hee inuestion (oes not fall :ithin the scope of the e@e2ptin5 poisions of Section ! of Republic Act No.$8& as a2en(e( b% Republic Act No. #4>. Acco(in5l%& the (ecision of the Au(ito& Cental Ban; ofthe Philippines& (en%in5 the afoe2entione( euest fo efun( of > e@chan5e ta@& is heeb%affi2e(. )n ie: of this esult& the Cental an( Eli7al(e file( the pesent petition fo eie:.

The onl% uestion to be esole( is :hethe upon the un(ispute( facts of the case the i2potation of thefetili7es 2entione( heetofoe is coee( b% the e@e2ption poi(e( b% Sections an( ! of RepublicAct No. $8& as a2en(e( b% Republic Acts Nos. >4& '> an( #>4& :hich ea( as follo:s3

SECT)ON . E@cept as heein othe:ise poi(e(& thee shall be assesse(& collecte( an( pai( a special

8/9/2019 31 La Carlota Sugar Central v. Jimenez (GR L-12436, 31 May 1961)

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e@cise ta@ of seenteen pe centu2 on the alue in Philippine peso of foei5n e@chan5e sol( b% theCental Ban; of the Philippines& o an% of its a5ents until /une thitieth& nineteen hun(e( an( fift%-si@.

SEC. !. The ta@ poi(e( fo in section one of this Act shall not be collecte( on foei5n e@chan5e use(fo the pa%2ent of the cost& tanspotation an(Fo othe cha5es of canne( 2il;& canne( beef& cattle&canne( fish& cocoa beans& 2alt& stabili7e an( flaos& ita2in concentate supplies an( euip2ent

puchase( (iectl% b% the Goen2ent o an% of its instu2entalities fo its o:n e@clusie use2achine%& euip2ent& accessoies& an( spae pats& fo the use of in(usties& 2ines& 2inin5entepises& plantes an( fa2es an( fetili7es :hen i2pote( b% plantes o fa2es (iectl% othou5h thei coopeaties . . . .

The la: is& theefoe& clea that i2pote( fetili7es ae e@e2pt fo2 the pa%2ent of the > ta@ onl% ifthe sa2e :ee i2pote( b% plantes o fa2es (iectl% o thou5h thei coopeaties. )n the pesentcase& as appellants a(2it that the Cental is not the plante ulti2atel% benefite( b% the fetili7es& 2uchless a coopeatie :ithin the puie: of Rep. Act No. $8& as a2en(e(& the onl% possible conclusionis that the i2pote( fetili7es in uestion ae not entitle( to the e@e2ption poi(e( b% la:.

)t is& ho:ee& a5ue( that the Cental i2pote( the fetili7es fo the e@clusie pupose ofacco22o(atin5 the hacien(as 2entione( heetofoe& :ho :ee to use the fetili7es that the Centalacte( 2eel% as an a5ent of the afoesai( hacien(as that consi(ein5 the elationship an( copoate tie-up bet:een the Cental& on the one han(& an( Eli7al(e& on the othe& the act of the Cental in i2potin5the fetili7es shoul( be consi(ee( as an act of Eli7al(e an(& theefoe& the act of the hacien(asthe2seles& thee of :hich :ee o:ne( an( t:o 2ana5e( b% Eli7al(e.

8/9/2019 31 La Carlota Sugar Central v. Jimenez (GR L-12436, 31 May 1961)

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onl% e@ception e@pessl% establishe( in the case of fetili7es i2pote( b% plantes o fa2es thou5hthei coopeaties.

)N D)E< O0 T1E 0OREGO)NG& the ulin5 appeale( fo2 is heeb% affi2e(& :ith costs.

Ben57on& C./.& Pa(illa& Bautista An5elo& Laba(o& Concepcion& Re%es /.B.L.& Pae(es& +e Leon an(

Natii(a(& //.& concu.Baea& /.& too; no pat.