Casco Philippine Chemical Co. Inc. vs. Hon.

Pedro Gimenez
GR No. L-17931
February 28, 1963
I. Doctrine
 The enrolled bill is conclusive upon the courts.
II. Facts
 Persons Involved:
 Casco Philippine Chemical Co. Inc. - petitioner
 Case: petition for review of a decision of auditor general denying a claim
for refund of petitioner.
 The Central Bank of the Philippines issued a circular fixing a uniform
margin fee 25% on foreign exchange transactions in accordance with the
RA 2609 – foreign exchange margin fee law.
 To supplement the circular, the bank promulgated a memorandum
establishing the procedure for applications for exemption from the
payment of said fee.
 Casco bought foreign exchange for the importation of raw materials and
paid margin fee approx. 33k and another purchase of foreign exchange
amounting to approx. 6k.
 Casco sought refund relying upon the memorandum declaring that the
raw mat urea and formaldehyde is exempt from said fee. Although
Central Bank issue a circular, the auditor of the bank refused to pass in
audit and approved the said refund contending that exemption is not in
accord with the provision of sec 2 par 18 of RA 2609.
III. Issue
Whether or not the "urea" and "formaldehyde" (raw materials) are exempt by
law from the payment of margin fee. No
IV. Decision
Urea and formaldehyde are not exempt from fees by law. RA 2609 only exempts
urea formaldehyde and not the separate importation of urea and formaldehyde
as they are different, 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.

If there has been any mistake in the printing of the bill before it was certified by
the officers of Congress and approved by the Executive — on which we cannot
speculate, without jeopardizing the principle of separation of powers and
undermining one of the cornerstones of our democratic system — the remedy is
by amendment or curative legislation, not by judicial decree.