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Batangas court stops the confiscation of Shell oil imports

 

shellPilipinas Shell Petroleum Corp., failed to get a positive judgement from Court of Tax Appeals (CTA), it managed to pull of a 3-day temporary restraining order from the regional court of Batangas City, halting the Bureau of Customs from confiscating its imported raw materials.

The 5 page order approved by executive judge Ruben Galvez, the court said that BOC are not allowed from entering Shell’s refinery in Batangas to grab hold and forcibly take in their possession, Shell’s imported raw materials. If the raw materials will be confiscated, Shell , with no other choice will be forced to shut down, since it will no longer have the materials to produce fuel products.  If that will happen, there will be no more products to sell.

Galvez said that the 959 retail dealer stations will soon shut down, then refinery workers will lose their jobs. The court find it reasonable to give Shell an ex-parte temporary restraining order for 72 hours.  BOC failed to seize the raw materials on Wednesday when the managers of the firm’s refinery did not give in to order.

Arnel Santos, general manager of Shell’s refinery in Batangas said in an interview that the BOC’s order was undeveloped since the CTA case is still not over. Shell has been disagreeing BOC’s P7.34-billion tax assessment on the company’s imports of catalytic cracked gasoline (CCG) and light CCG from 2004 to 2009.  According to them, imports are just raw materials for the production of unleaded gasoline for which duties have been paid for.

BOC is demanding the payment of excise taxes levied on finished products intended for domestic consumption after accusing the oil firm of misdeclaring the goods. Earlier, the CTA issued a 60-day TRO stopping the BOC from confiscating some P43 billion worth of Shell’s imports to pay for P7.34 billion in so-called back taxes. The said TRO ended on Tuesday, the same day the CTA denied Shell’s motion for injunction.