Casco Phil Chemical Co vs.

Gimenez
Fact:
In pursuant to Republic Act No. 2609 (Foreign Exchange margin Fee Law), the
Central Bank of the Philippines fixed a uniform margin fee of 25% foreign
exchange transactions on July 1, 1959,
Petitioner Casco Philippine Chemical Co., Inc., a manufacturer of resin glues,
had bought foreign exchange for the importation of urea and formaldehyde
raw materials for the said glues and paid for the required margin fees.
Relying upon Resolution No. 1529 dated November 3, 1959 declaring that
separate importation of urea and formaldehyde is exempt from fee.
The petitioner sought for a refund of the margin fees that had been paid
which was denied by the Auditor of the said Bank stating that the claim was
not in accordance with the provisions of section 2, paragraph XVIII of R.A.
2609.
Issue:
Whether urea and formaldehyde are exempt by law from the payment of
the aforesaid margin fee

Held:
Ureaformaldehyde is not exempt from law. For it is different from urea and
formaldehyde the former being the finished product and not the main raw
materials in the production of the said glue.
The pertinent portion of Section 2 of Republic Act No. 2609 reads:
The margin established by the Monetary Board pursuant to the provision of
section one hereof shall not be imposed upon the sale of foreign exchange for
the importation of the following:
XVIII. Urea formaldehyde for the manufacture of plywood and hardboard
when imported by and for the exclusive use of end-users.
It is well settled that the enrolled bill which uses the term urea
formaldehyde instead of urea and formaldehyde is conclusive upon the
courts as regards the tenor of the measure passed by Congress and approved
by the President. The courts cannot speculate that there had been an error or
mistake in the printing of the bill as this shall violate the principle of

separation of powers. Shall there have been any error in the printing, the
remedy is by amendment or curative legislation, not by judicial decree.