Casco Philippine Chemical Co., Inc. v. Hon. Pedro Gimenez and Hon. Ismael Mathay7 SCRA 347 (February 28, 1963)

Facts: Pursuant to RA 2609, otherwise known as the Foreign Exchange Margin Fee Law, Central Bank of the Philippines issued Circular No. 95 to fix a new uniform fee of 25% on foreign exchange transactions and a memorandum which establish the procedure for application for exemption from payment of said fee. Petitioner Casco Philippine Chemical Co. which manufactures synthetic resin glues bought foreign exchange in November and December 1959 and May 1960 for the importation of urea and formaldehyde and paid for the margin fee. Petitioner sought the refund of their margin fee pursuant to Resolution No. 1529 of the Monetary Board of Central Bank which exempts the separate importation of urea and formaldehyde from the said fee. However, the Auditor of the Bank refused to pass in audit and approve said vouchers on the ground that urea and formaldehyde is not in accord with Section 2, paragraph XVIII of RA 2609. On appeal by the petitioner, the Auditor General affirmed the decision of the Auditor of the Bank. Hence, this petition.

Issue: Whether or not urea and formaldehyde are exempt by law from the payment of the margin fee.

Held: No. “Urea formaldehyde” is patently distinct and different from “urea” and “formaldehyde” because the former is a finished product while the latter are raw materials used to manufacture synthetic glues. Furthermore, it is well settled that enrolled bill – which uses the term urea and formaldehyde – is conclusive upon the courts as regards the tenor of the measure passed by Congress and approved by the President. Any mistake in the printing of the bill before it was certified by the officers of Congress and approved by the Executive can only be remedied by amendment or curative legislation.