CELESTINO CO & CO.

V CIR
FACTS:
Celestino Co & Co. (Oriental Sash Factory) was paying 7% taxes based on gross receipts for the
manufacture and sale of sash products. It now seeks to pay only the 3% tax imposable upon contracts
for pieces of work as opposed to the 7% tax on sales, claiming that they do not manufacture ready-
made doors for the public but only upon special order of the customers.
Celestino contends that in filing orders for windows and doors according to specification, it did not sell
but merely contracted for particular pieces of work or merely sold its services

ISSUE:
W/N Celestino is a contractor for piece of work thus he is only bound to pay 3% tax as opposed to the 7%
tax on sale

HELD:
Oriental Sash Factory does nothing more than sell the goods that it mass produce or habitually makes,
cutting them to such sizes and combing them in such form as its customer may desire. The fact that the
sash products are made only upon order of the customers does not change the nature of the
establishment. Timing is not the controlling factor but the nature of the work done. They habitually
make sash products and can easily duplicate and mass produce the same. The bulk of their sales come
from standard ready-made products special orders are the exception and come only occasionally. If
the goods are manufactured specifically upon special order of the customer and requires extraordinary
service, that would be the time when it can be classified as piece of work. Such is not the case here.
Oriental Sash is clearly a manufacturer and mass-producer.