Mell Lantion

Casco Chemical Co. vs. Gimenez

Facts: Casco engaged in the manufacture of synthetic resin glues used for making
plywood bought foreign exchange for the importation of its principle raw materials
urea and formaldehyde.
!he "ank# however# fixed a uniform margin fee of $%& on foreign exchange transactions
with some exceptions under '.(. $)*+. Casco had sought the refund declaring that the
separate importation of urea and formaldehyde falls under the exemptions provided.
,owever# the (uditor of the "ank refused on the ground that the exemption for the
separate importations of urea and formaldehyde is not in accord with the law.
Issue: -./ 0urea1 and 0formaldehyde1 are exempt by law from the payment of the
margin fee.
Held: /o.
!he exemption under 2aragraph 34555 of '.(. $)*+ clearly provides for
34555. Urea formaldehyde for the manufacture of plywood and hardboard when
imported by and for the exclusive use of end6users.
78rea7 and 7formaldehyde7 do not fall under the exemption because they are separate
raw materials used in the manufacture of the synthetic resin known as 0urea
formaldehyde.1 ,ence# 7urea formaldehyde7 is clearly a finished product# which is
patently distinct and different from the former.
'.(. $)*+ is conclusive upon the courts. 5f there has been any mistake in the printing of
the bill before it was certified by the officers of Congress and approved by the 9xecutive
on which we cannot speculate# without :eopardizing the principle of separation of
powers and undermining one of the cornerstones of our democratic system the remedy
is by amendment or curative legislation# not by :udicial decree