THE Court of Tax Appeals (CTA) has affirmed its ruling, granting part of Ginebra San Miguel, Inc.’s (GSMI) refund claim for wrongly paid excise taxes on distilled spirits, totaling P319.76 million for the period from Jan. 1 to May 31, 2013.

In a 26-page decision dated Jan. 18, the CTA full court upheld its previous finding that GSMI demonstrated paying excise tax twice on raw materials and finished liquor products, amounting to P319.76 million.

“The imposition of excise taxes on the finished liquor products manufactured from tax-paid ethyl alcohol is contrary to law,” said Associate Justice Marian Ivy F. Reyes-Fajardo in the decision.

GSMI initially sought a total refund claim of P715.26 million for its excise tax liabilities.

The tax court disallowed the remaining amount due to GSMI’s failure to include the in-transit ethyl alcohol, measuring 4,063,500 proof liters, in its claim. This alcohol was in transit to its factory during a year-end inventory count.

“Notably, GSMI acknowledges that it failed to include the in-transit volume in its petition, as well as in its administrative claim,” the CTA noted.

“All in all, there is no reason for us to deviate from the Court in Division’s (Third Division) conclusion.” — John Victor D. Ordoñez