For the period July 24-28, 2004, Caltex sold imported Jet A-1 fuel to PAL. Cose!uetly, o July 2", 2#, 28, ad 2$, 2004, Caltex %led &ith the '() its *x+ise ,ax )eturs for Petroleum produ+ts. - Au.ust / 2004 PAL re+ei0ed from Caltex a A0iatio 'illi. (0oi+e for the pur+hased fuel &here the +orrespodi. *x+ise ,ax &as i+luded. - -+to1er 2$ 2004 PAL sou.ht a refud of the ex+ise taxes passed o to it 1y Caltex. (t hi.ed its tax refud +laim o its operati. fra+hise P2 13$0, &hi+h +oferred upo it +ertai tax exemptio pri0ile.es o its pur+hase of a0iatio .as, fuel, ad oil, i+ludi. those &hi+h are passed o to it 1y the seller ad4or importer thereof. PAL asserted that it had the le.al persoality to %le the tax refud +laim. C()5s ia+tio +aused PAL to %le a Petitio for )e0ie& 1efore the C,A o Jul 23 200". ,he C() asserted that PAL has o le.al persoality to %le the +laim relyi. o 6il7air 0. C() 344 6C)A 100. PAL +outered that it has le.al persoality relyi. o 8a+eda 0. 8a+arai., Jr. 22/ 6C)A 21#. Issues Does PAL have legal personality to le the su!"ect clai#$ 9es. PAL5s fra+hise .rats it a exemptio from 1oth dire+t ad idre+t taxes o its pur+hase of petroleum produ+ts uder 6e+tio 1/ of P2 13$0. ,he .eeral rule is laid do& i 6e+tio 204:+; of the <()C &hi+h states that it is the statutory taxpayer &hi+h has the le.al persoality to %le a +laim for refud. =o&e0er, as pro0ided i PAL5s le.islati0e fra+hise, it has tax exemptios &hi+h +o0er 1oth dire+t ad idire+t taxes ( Silkair it &as de+lared that ,he proper party to !uestio, or see7 a refud of, a idire+t tax is the statutory taxpayer, the perso o &hom the tax is imposed 1y la& ad &ho paid the same e0e if he shifts the 1urde thereof to aother. =o&e0er, the a1o0emetioed rule should ot apply to ista+es &here the la& +learly .rats the party to &hi+h the e+oomi+ 1urde of the tax is shifted a exemptio from 1oth dire+t ad idire+t taxes. ( &hi+h +ase, the latter must 1e allo&ed to +laim a tax refud e0e if it is ot +osidered as the statutory taxpayer uder the la&. Construction o% L&I '()3 L-( 148/ ameded PAL5s fra+hise 1y &ithdra&i. the tax exemptio pri0ile.e .rated to PAL o its pur+hase of domesti+ petroleum produ+ts for use i its domesti+ operatios. C() +oteds that the pur+hase of the a0iatio fuel imported 1y Caltex is a >pur+hase of domesti+ petroleum produ+ts> 1e+ause the same &as ot pur+hased a1road. ,he Court disa.reed. (t stated that the phrase >pur+hase of domesti+ petroleum produ+ts for use i its domesti+ operatios> refers oly to PAL5s exemptios o passed o ex+ise tax +osts due from the seller, maufa+turer4produ+er of lo+ally maufa+tured4produ+ed .oods for domesti+ sale ad does ot, i ay &ay, pertai to ay of PAL5s tax pri0ile.es +o+eri. imported .oods, may it 1e a? PAL5s tax exemptio o ex+ise tax +osts &hi+h are merely passed o to it 1y the importer &he it 1uys imported .oods from the latter@ or 1? PAL5s tax exemptio o its dire+t ex+ise tax lia1ility &he it imports the .oods itself. A6ee p. //$ for a i-depth aalysis? 'ased o 6e+tio 1/ of PAL5s fra+hise, PAL5s tax exemptio pri0ile.es o all ta*es o a0iatio .as, fuel ad oil may 1e +lassi%ed ito three 7idsB a? all taxes due o PAL5s lo+al pur+hase of a0iatio .as, fuel ad oil@ 1? all taxes dire+tly due from or imposa1le upo the pur+haser or the seller, produ+er, maufa+turer, or importer of a0iatio .as, fuel ad oil 1ut are 1illed or passed o to PAL ad +? all taxes due o all importatios 1y PAL of a0iatio .as, fuel, ad oil.