Casco v Gimenez

Casco Chemical Co., which is engaged in the manufacture of synthetic resin glues
used in bonding lumber and veneer by plywood and hardwood producers, bought
foreign exchange for the importation of urea and formaldehyde which are the main
raw materials in the production of the said glues. They paid P33,765.42 in November
and December 1949 and P6345.72 in May 1960. Prior thereto, the petitioner sought
the refund of the first and second sum relying upon Resolution No. 1529 of the
Monetary Board of said bank, dated November 3, 1959, declaring that the separate
importation of urea and formaldehyde is exempt from said fee. The Auditor of the
Bank, Pedro Gimenez, refused to pass in audit and approve the said refund on the
ground that the exemption granted by the board in not in accord with the provision of
section 2 of RA 2609.

Issue of the Case: Whether or Not Urea and formaldehyde are exempt by law from
the payment of the margin fee.

Held: No, it is not exempt from payment of the marginal fee. Urea formaldehyde is
clearly a finished product which is distinct from urea and formaldehyde. The
petitioner’s contends that the bill approved in Congress contained the conjunction
“and” between the terms “urea” and “formaldehyde” separately as essential elements
in the manufacture of “urea formaldehyde” and not the latter. But this is not
reflective of the view of the Senate and the intent of the House of Representatives in
passing the bill. If there has been any mistake in the printing of the bill before it was
passed the only remedy is by amendment or curative legislation, not by judicial
decree.