8/11/2019 PAL vs CIR 700 SCRA 322

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8/11/2019 PAL vs CIR 700 SCRA 322

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Issues

Does PAL have legal personality to le the su!"ect clai#$

9es. PAL5s fra+hise rats it a exemptio from oth dire+t ad idre+t

taxes o its pur+hase of petroleum produ+ts uder 6e+tio 1/ of P 13$0.

he eeral rule is laid do& i 6e+tio 204:+; of the

8/11/2019 PAL vs CIR 700 SCRA 322

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sale ad does ot, i ay &ay, pertai to ay of PAL5s tax priilees

+o+eri imported oods, may it e a? PAL5s tax exemptio o ex+ise tax

+osts &hi+h are merely passed o to it y the importer &he it uys

imported oods from the latter@ or ? PAL5s tax exemptio o its dire+t ex+ise

tax liaility &he it imports the oods itself. 6ee p. //$ for a i-depth

aalysis?

'ased o 6e+tio 1/ of PAL5s fra+hise, PAL5s tax exemptio priilees o

all ta*eso aiatio as, fuel ad oil may e +lassi%ed ito three 7idsB a?

all taxes due o PAL5s lo+al pur+hase of aiatio as, fuel ad oil@ ? all taxes

dire+tly due from or imposale upo the pur+haser or the seller, produ+er,

maufa+turer, or importer of aiatio as, fuel ad oil ut are illed or

passed o to PAL ad +? all taxes due o all importatios y PAL of aiatio

as, fuel, ad oil.