GR 183868; (November, 2010) (Digest)
G.R. No. 183868; November 22, 2010
COMMISSIONER OF CUSTOMS, Petitioner, vs. MARINA SALES, INC., Respondent.
FACTS
Respondent Marina Sales, Inc., a manufacturer of Sunquick juice concentrates, imported shipments of various fruit concentrates. Historically, the Bureau of Customs (BOC) assessed such imports under Tariff Heading H.S. 2106.90 10 at a 1% duty. For two specific import entries in 2003, however, BOC examiners recommended reclassification under H.S. 2106.90 50 at a 7% duty, contending the goods were composite concentrates for simple dilution. Marina secured the shipments’ release under the Tentative Release System, undertaking to pay any deficiency.
The Valuation and Classification Review Committee (VCRC) initially reclassified the imports under H.S. 2106.90 50, later modifying this to various headings under Chapter 20.09 with duty rates of 7% and 10%. Marina appealed to the Commissioner of Customs and, receiving no favorable action, filed a petition for review with the Court of Tax Appeals (CTA) Second Division. The CTA Division ruled in Marina’s favor, reinstating the 1% duty under H.S. 2106.90 10. The Commissioner filed a petition for review directly with the CTA En Banc, bypassing a motion for reconsideration with the Division.
ISSUE
Whether the CTA En Banc correctly dismissed the Commissioner’s petition for review for failure to file a prior motion for reconsideration with the CTA Division.
RULING
Yes, the CTA En Banc correctly dismissed the petition. The Revised Rules of the Court of Tax Appeals explicitly require that a motion for reconsideration of a Division ruling must be filed before an appeal to the CTA En Banc may be taken. This rule is mandatory and jurisdictional. The Commissioner’s failure to comply with this procedural prerequisite deprived the CTA En Banc of jurisdiction to entertain the petition.
The Supreme Court affirmed this dismissal, emphasizing that the rule ensures the orderly administration of justice by allowing the Division an opportunity to correct its own errors. The Commissioner’s argument that the issue involved was purely legal, thus exempting him from the motion requirement, was untenable. The Court clarified that the nature of the question does not excuse non-compliance with a clear procedural rule. Consequently, the CTA En Banc’s dismissal was proper, leaving the CTA Division’s ruling in favor of Marina Sales, Inc. final, which classified the imported concentrates as raw materials for manufacturing under H.S. 2106.90 10 at a 1% duty rate.