The Court of Tax Appeals granted Philippine Airlines, Inc. a refund of P88.54-million in taxes. This is for the importation of Jet A-1 aviation fuel for 2005’s second quarter. The CTA Second Division revealed in a 29-page decision that PAL had complied with all requisites to avail of imported fuel tax exemption.
“The Court is convinced that at the time of the importations subject of this case, there was lack of locally available Jet A-1 fuel in reasonable quantity, quality or price,” according to an excerpt from the decision written by Associate Justice Amelia R. Cotangco-Manalastas. Associate Justices Caesar A. Casanova and Juanito C. Castañeda, Jr. concurred with the decision.
