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BOC loses bid to reverse dismissal of case vs Pilipinas Shell

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MANILA, Philippines—The Court of Appeals stood pat on its earlier ruling dismissing the case against Pilipinas Shell Petroleum Corporation (PSPC) over its alleged use of fraudulently obtained tax-credit certificates (TCCs).

In a two-page resolution dated June 3, the appeals court 9th division denied the motion for reconsideration filed by the government for failure to present new arguments that would warrant a reversal of their earlier decision.

“After carefully considering the grounds raised in the subject…The additional arguments proffered therein constitute no cogent or compelling reason to modify, much less reverse it,” the appeals court said.

The Bureau of Customs went to the appeals court assailing the Manila Regional Trial Court Branch 49 ruling that dismissed the case against PSPC and ordered the trial of the case against Filipino Way Industries.

On May 7, 1997, Filway executed a Deed of Assignment over the TCCs in favor of PSPC whereby it assigned, transferred and waived all its rights, claims and interests in PSPC’s favor, in consideration of which PSPC paid the amount of P9,080,000.

PSPC then used the TCCs to settle its customs duties and taxes on its oil importations with the BoC with prior approval by the One Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (CENTER).

After the CENTER’s post-audit/investigation, it was discovered that the credit memos used by Filway were fake and the export declarations made by Filway in support of its application for TCCs were actually issued to some other corporations and not to Filway.

The CENTER informed PSPC that the TCCs were canceled. PSPC sought a reconsideration. Eventually, the BOC filed a case for collection of money with damages before the Manila court. PSPC questioned the lower court’s jurisdiction over the case but the court turned down the argument raised by PSPC.

Then, the case reached the Supreme Court who opted to toss the case back to the lower court for further hearing. The lower court eventually dismissed the case in favor of PSPC prompting the BOC to elevate the case to the appeals court.


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Tags: Bureau of Customs , Business , News , oil industry , Pilipinas Shell , tax , tax credit

  • disqusted0fu

    BOC officials should be slapped with a case for the rampant smuggling in the PH. With how bad smuggling is in this present administration it is almost impossible that some, if not many of the BOC officials are not involved in it.

  • joboni96

    sinong kumita rini?

    sigurado hindi mga pilipino

    mabuhay mga abogago ng shell

  • linobog

    Fake TCCs…nakalusot sa korte ????????? What happened to you your honors???

  • rburke

    classic “how to lose a case..’”

  • eight_log

    Mahina ang free lifetime gasoline!!!!!!

  • damesman

    This egregious decision against the government case is just another in a string of losses by government entities, the most glaring of which is the case against Lucio Tan who won his SC case against the BIR years ago on a mere technicality.

    How long must we countenance dimwitted courts or justices whose decisions border on the incredulous. The Justice Department is an agency reeking of the foul stench of corruption through its ranks and all the way to the top echelon of the department.

    • Garo Ungaro

      What does it tells u status quo business as usual?…Sometimes money is stronger that the truth….Money can buy anything, you can’t blame them..specially if you want to have a holiday in HK….You can’t have your holiday with truth but money will?….CA/BoC/PSPC they all in the same boat. The loser is the treasury and the citizen….AGAIN?

  • dani77777

    But why did the trial court dismiss the case in the first place? Ang labo ng readings na to. Or maybe the title is wrong.

  • rudy_boy

    “The Court of Appeals stood pat on
    its earlier ruling dismissing the case” .

    So, who
    are the good Justices that rendered the decision?



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