G.R. No.

L-17931                 28 February 1963

Casco Philippine Chemical Co., Inc. vs. Gimenez and Mathay

Ponente: Concepcion, J.

FACTS:

On July 1, 1959, pursuant to Republic Act No. 2609 (Foreign Exchange margin Fee Law), the Central Bank of the
Philippines fixed a uniform margin fee of 25% foreign exchange transactions.  Petitioner Casco Philippine Chemical
Co., Inc., a manufacturer of resin glues, had bought foreign exchange for the importation of urea and formaldehyde
– raw materials for the said glues – and were thus paying for the margin fees required.

Relying upon Resolution No. 1529 of the Monetary Board of the said bank declaring that the separate importation of
urea and formaldehyde is exempt from the said fee, the petitioner sought for a refund of the margin fees that had
been paid.  This was denied by the Auditor of the said Bank stating that the claim was not in accord with the
provisions of section 2, paragraph XVIII of R.A. 2609.

ISSUE: 
Whether “urea” and “formaldehyde” are exempt by law from the payment of the aforesaid margin fee

HELD/RULING:

“Urea” and “formaldehyde” is not exempt from law.

The pertinent portion of Section 2 of Republic Act No. 2609 reads:

The margin established by the Monetary Board pursuant to the provision of section one hereof shall not be imposed
upon the sale of foreign exchange for the importation of the following:

xxx     xxx     xxx

XVIII. Urea formaldehyde for the manufacture of plywood and hardboard when imported by and for the exclusive
use of end-users. (Emphasis provided.)

Urea formaldehyde is different from urea and formaldehyde, the former being a finished product.  It is well settled
that the enrolled bill – which uses the term “urea formaldehyde” instead of “urea and formaldehyde” – is conclusive
upon the courts as regards the tenor of the measure passed by Congress and approved by the President.  The courts
cannot speculate that there had been an error in the printing of the bill as this shall violate the principle of separation
of powers.  Shall there have been any error in the printing, the remedy is by amendment or curative legislation, not
by judicial decree.