7/24/2019 Pilipinas Shell Petroleum Corp vs Republic

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Pilipinas Shell Petroleum Corp. vs Republic

FACTS: The present controversy sprang from the cancellation of tax debitmemos (TDMs) and the corresponding tax credit certificates (TCCs) assigned to

Shell by various entities. Some of these TCCs were subseuently accepted aspayment by the !"C for Shell#s taxes and import duties in $%%& and $%%'.

owever the Dept. of *inance had to cancel the TDMs and TCCs because asalleged they were fraudulently issued and transferred. Shell was then as+ed toimmediately pay the !"C and the !,- for the value of the canceled TCCs as wellas the penalties surcharges and interests.

-espondent filed a collection case in the -TC of Manila against Shell because inview of the invalidation of the TCCs Shell still owed - the amount of unpaidcustoms duties and taxes. Shell uestioned the /urisdiction of the -TC and

assailed that the RTC acquires jurisdiction over a collection case only if anassessment has become final and incontestable (Yabes v. Flojo). The matterwas elevated to the C0 but the appellate court denied the petition saying that!"C#s assessment had already become final and conclusive. !"C1s demand forpayment was not an assessment that could still be protested under the Tariff andCustoms Code.

SS!": #$% the Respondent had a ri&ht to file a collection case.

'"(): *es.

0n assessment or liuidation by the !"C attains finality and conclusiveness oneyear from the date of the final payment of duties except when2(a) there was fraud3(b) there is a pendin& protestor(c) the liquidation of import entry +as merely tentative.

4one of the foregoing exceptions is present in this case. There was no fraud aspetitioner claimed (and was presumed) to be in good faith. -espondent does notdispute this. -ecords show that petitioner paid those duties without protest usingits TCCs. *inally the liuidation was not a tentative one as the assessment hadlong become final and incontestable. Conseuently pursuant to Yabes v. Flojo

and because of the cancellation of the TCCs respondent had the right to file acollection case.

%.,.0ssessments inform taxpayers of their tax liabilities. 5nder the TCC theassessment is in the form of a liuidation made on the face of the import entryreturn and approved by the Collector of Customs. 6iuidation is the finalcomputation and ascertainment by the Collector of Customs of the duties due onimported merchandise based on official reports as to the uantity character andvalue thereof and the Collector of Customs# own finding as to the applicable rateof duty. 6iuidation is considered to have been made when the entry is officiallystamped 7liuidated7.