OIL giant Pilipinas Shell Petroleum Corp. (PSPC) said in a disclosure to the local bourse on Tuesday that it is in the process of reversing the P1.36-billion provisions it made in connection with a case filed against it by the Bureau of Customs more than 20 years ago, after the Supreme Court ruled in its favor with finality.
The amount represents the total dutiable value of its 1996 crude oil importation, plus a 6 percent annual interest, which the BOC insisted was considered as abandoned in favor of the government by operation of law.
On December 5, 2016, the Supreme Court dismissed the motion for reconsideration filed by the BOC, thereby prohibiting the latter to collect the nearly P1 billion in duties from the company.
It also granted Shell’s request to reverse the May 13, 2010 decision of the Court of Appeals ordering the company to pay a total amount of P936,899,833.90.
The SC’s Special Third Division also denied the government agency’s request to bring the case to the court en banc.
The high court’s June 19 resolution, which Shell said it received on July 17, reiterated that Shell was not guilty of committing fraud.
In the absence of fraud, the high court said that the BOC’s claims against the oil company “have been barred by prescription after the lapse of one (1) year from the payment of duties.”
The SC also held there could be no automatic abandonment without prior due notice as stipulated in Section 1801 of the Tariff and Customs Code of the Philippines.
“With this development, SHLPH is in the process of reversing the provisions made in the amount of P1,360.4 million,” the oil company said.