Pilipinas Shell Petroleum Corp. said Tuesday it won a P1.36-billion case against the Bureau of Customs, after the Supreme Court ruled with finality the oil company is not guilty of fraud in crude oil importation in 1996.
Pilipinas Shell said in a statement that it would now reverse the P1.36-billion provision it made earlier, following the favorable decision from the high tribunal.
“We welcome the finality of the positive decision issued by the Supreme Court in the abandonment case involving Customs. Pilipinas Shell Petroleum Corp. extols the rule of law in the country as it continues to work hand in hand with the government as part of its commitment to nation-building,” the company said.
Pilipinas Shell said in a disclosure to the stock exchange it received the Supreme Court resolution dated June 19, 2017 denying the government’s motion for reconsideration and reiterated that the oil firm was not guilty of fraud.
The court dismissed with finality the appeal of Customs seeking to collect the amount from Pilipinas Shell, representing the total dutiable value of the firm’s crude oil importation in 1996.
“In the absence of fraud, the Bureau of Customs’ claims against SHLPH have been barred by prescription after the lapse of one year from payment of duties. The Supreme Court likewise held that there can be no automatic abandonment without prior due notice required under Section 1801 of the Tariff and Customs Code,” Pilipinas Shell said.
The Supreme Court, in its previous decision dated Dec. 5, 2016, granted Pilipinas Shell’s petition and accordingly reversed and set aside the decisions of the lower courts that the company allegedly abandoned its imported crude oil with a dutiable value of P936,899,883.90.
Pilipinas Shell earlier set aside P1.36 billion to cover its financial exposure in case the final decision was not in the company’s favor.
“In light of the finality of the denial of the Bureau of Customs’ omnibus motion for reconsideration and referral to the court en ban dated Jan. 20, 2017, the resolution dated June 19, 2017 also ordered that an entry of judgment be issued in this case. With this development, SHLPH is in the process of reversing the provisions made in the amount of P1.360 billion,” Shell said.
The tribunal said that Custom’s motion was anchored primarily on the alleged applicability of Chevron Philippines Inc. vs. Commissioner of the Bureau of Customs to its case.
It said that case could not be applied to Pilipinas Shell’s case as the facts and circumstances of the two cases were not the same.
The Supreme Court said that in the Chevron case, the evidence on record established that the oil company committed fraud in its dealings.
“On the other hand, proof that petitioner Pilipinas Shell Petroleum Corp. was just as guilty was clearly wanting,” the tribunal said.