CASCO PHILIPPINE CHEMICAL CO., INC V.

PEDRO GIMENEZ
G.R. No. L-17931, February 28, 1963

FACTS:
Casco Philippine Chemical Co., Inc. filed a petition for review on the decision of the Audi-
tor General denying its claim for the refund of its margin fee payment.

Pursuant to the Foreign Exchange Margin Fee Law (R.A. no. 2609) the Central Bank of
the Philippines issued Circular No. 95. fixing a uniform margin fee of 25% on foreign exchange
transactions and later, a memorandum establishing the procedure for applications for exemption
from the payment of said fee.

Petitioner bought foreign exchange for the importation of urea and formaldehyde which
are main raw materials for synthetic resin glues that it produces, and paid the said margin fee
aggregating P33,765.42 (November to December 1959) and P6,345.72 (May 1960).

Petitioner sought for refund of its margin fee on the basis of Monetary Board Resolution
no. 1529 declaring that separate importation of urea and formaldehyde is exempt from said fee

Central Bank issued margin fee vouchers for the refund of the said amounts but the Au-
ditor of the Bank refused to pass in audit and approve the vouchers on the ground that the ex-
emption granted by the Monetary Board for petitioner's separate importations of urea and
formaldehyde is not in accord with the provisions of section 2, paragraph XVIII of RA 2609,
which imposes the exemption of the payment of the margin fee for “urea formaldehyde.”
The Auditor General of the Bank affirmed the action of the Auditor of the Bank.

The National Institute of Science and Technology, through its Commissioner, opined that
“urea formaldehyde” is not a chemical solution but the synthetic resin form as a condensation
product from definite proportions of “urea” and “formaldehyde.”

ISSUE:
Whether or not “urea” and “formaldehyde,” as separate imports, exempt from the mar-
gin fee.

RULING:
The Supreme Court, speaking through Justice Concepcion, settles that the enrolled bill
— which uses the term "urea formaldehyde" instead of "urea and formaldehyde" — is conclu-
sive upon the courts as regards the tenor of the measure passed by Congress and approved by
the President.

DIGESTED BY: ABATAYO, R.O. 1L-M5

 Whether there had been any mistake in the printing of the bill before it was certified by
the officers of Congress and approved by the Executive … the remedy is by amendment or cura-
tive legislation, not by judicial decree.

The Supreme Court affirmed the decision of the Auditor General that urea and formaldehyde, as
separate imports, are not covered by the exemption on the payment of margin fee.

DIGESTED BY: ABATAYO, R.O. 1L-M5