PEOPLE vs. DESIDERIO (Tax 2)

G.R. No. L-20805           November 29, 1965

THE PEOPLE OF THE PHILIPPINES, plaintiff-appellant,

vs.

IGNACIO DESIDERIO, defendant-appellee.

Office of the Solicitor General for plaintiff-appellant.

Jose C. Azcarraga for defendant-appellee.

FACTS:

Ignacio Desiderio, on or about November 28, 1958, in Zamboanga City, "did then and there willfully, unlawfully and feloniously possess, receive, conceal, buy, sell (after illegal importation) eleven (11) cases and twenty (20) cartons of Chesterfield cigarettes and eleven (11) cartons of Camel cigarettes of foreign brand and manufactured in a foreign country, knowing that the same have been imported contrary to law."

A plea of not guilty was entered by the accused. On June 27, 1961, however, said accused presented a motion to quash on the ground that his criminal liability had been extinguished by a compromise agreement with the Collector of Customs, on February 10, 1958, in accordance with Section 2307 of the same Republic Act 1937. After considering the arguments, pro and con, on said motion, the Court granted the same in its order of October 11, 1062, dismissing the case.

ISSUE:

Whether settlement of the case under Section 2307 extinguishes criminal liability under Section 3601, both of Republic Act 1937, otherwise called the Tariff and Customs Code.

RULING:

No, Section 2307 expressly states what are deemed discharged thereunder, namely, "all liability which may or might attach to the property by virtue of the offense which was the occasion of the seizure and all liability which might have been incurred under any bond given by the owner or agent in respect to such property." It limits the effects of the aforesaid settlement to the liability that attaches to the property, or to the bond that replaces the property. It does not speak of the liability that falls on the person or offender. Clearly, therefore, the interpretation of the accused is not supported by the law.

Furthermore, such interpretation, if adopted, would aggravate the problem of smuggling and pave the way to national economic ruin. For it would encourage unlawful importation, since by the mere expedient of redeeming their seized importation the smugglers would be freed from personal criminal liability for the offense. Such a course we cannot in the least sanction.