Section 135(a) of the 1997 NIRC refers to the tax exemption granted to international air carriers and not to the seller or manufacturers of petroleum products.

Taxpayer is engaged, among others, in the business of manufacturing, processing, treating and refining petroleum for the purpose of producing marketable products and by products and the subsequent sale thereof. Taxpayer also imports finished Jet A-1 fuel primarily for the purpose of sale and delivery to foreign and domestic air carriers and other customers. Consequently, taxpayer paid excise taxes for the importation of Jet A-1 fuel. Taxpayer posits that the excise taxes on imported Jet A-1 fuel sold to international carriers is exempt from tax pursuant to Section 135 of the NIRC. According to the taxpayer, this partakes the nature of erroneously or illegally collected tax. Thus, it filed a claim for refund.

According to the Court, one of the requisites in a claim for refund is that there must be an erroneous or illegal collection of tax or penalty collected without authority or sum excessively or wrongfully collected. The taxes paid on Jet A-1 fuel sold to international air carriers cannot be considered erroneously or illegally paid as taxpayer is statutorily liable to pay said excise tax. (Pilipinas Shell Petroleum Corporation vs. Commissioner of Internal Revenue, CTA Case No. 7871, December 3, 2013)