Fort Bonifacio v CIRFacts:- The Commissioner of Internal Revenue (CIR) disallowed Fort Bonifacio Development Corporations (FBDC) presumptive input ta credit arisin! from the land inventor" on the #asis of Revenue Re!ulation $-%& (RR $-%&) and Revenue 'emorandum Circular (-%) (R'C (-%))* +peci,call"- +ection .*/0&-/of RR $-%&:o +ec* .*/0&-/* Transitional input ta on #e!innin! inventories* 1 Tapa"ers who #ecame 23T-re!istered persons upon e4ectivit" of R3 5o* $$/) who have eceeded the minimum turnover of 6&00-000*00 orwho voluntaril" re!ister even if their turnover does not eceed 6&00-000*00 shall #e entitled to a presumptive input ta on the inventor" on hand as of Decem#er (/- /%%& on the followin!: (a) goods purchased for resale in their present condition; (b) materials purchased for further processing, but which have notyet undergone processing; (c) goods which have been manufactured by the taxpayer; (d) goods in process and supplies, all of which are for sale or for use in the course of thetaxpayers trade or business as a VATregistered person!- 3ccordin! to sec /0& The transitional input ta shall #e 78 of the value of theinventor" or actual 23T paid- whichever is hi!her- which amount ma" #e allowed as ta credit a!ainst the output ta of the 23T-re!istered person* - 9owever- in the 3pril :- :00% Decision sou!ht to #e reconsidered- the Court struc; down +ection .*/0&-/ of RR $-%& for #ein! in conld 5IRC sans statutor" authorit" or #asis and ?usti,cation to ma;e such limitation* This it did when it restricted the application of +ection /0& in the case of real estate dealers onl" to improvements on the real propert" #elon!in! to their #e!innin! inventor"* -o +ec* /0&* Transitional Input ta Credits* 1 3 person who #ecomes lia#le to value-added ta or an" person who elects to #e a 23T-re!istered person shall- su#?ect to the ,lin! of an inventor" as prescri#ed #" re!ulations- #e allowed input ta on his beginning inventory of goods, materials and supplies e"uivalent to #$ of the value of such inventory or the actual valueadded tax paid on such goods, materials and supplies, whichever is higher, which shall be creditable against the output tax!- The term =!oods or properties= #" the unam#i!uous terms of +ection /00 includes =real properties held primaril" for sale to costumers or held for lease in the ordinar" course of #usiness*= 9avin! #een de,ned in +ection /00 of the5IRC- the term =!oods= as used in +ection /0& of the same code could not have a di4erent meanin!*Issues:- @hether or not a Revenue Re!ulation ma" contravene the provisions of the 5IRC on the description or de,nition of the term A!oodsBCRulin!:- The rules and re!ulations that administrative a!encies promul!ate- which arethe product of a dele!ated le!islative power to create new and additional le!al provisions that have the e4ect of law- should #e within the scope of the statutor" authorit" !ranted #" the le!islature to the o#?ects and purposes of the law- and should not #e in contradiction to- #ut in conformit" with- the standards prescri#ed #" law*- To #e valid- an administrative rule or re!ulation must conform- not contradict-the provisions of the ena#lin! law* 3n implementin! rule or re!ulation cannot modif"- epand- or su#tract from the law it is intended to implement* 3n" rulethat is not consistent with the statute itself is null and void* - @hile administrative a!encies- such as the Bureau of Internal Revenue- ma" issue re!ulations to implement statutes- the" are without authorit" to limit the scope of the statute to less than what it provides- or etend or epand the statute #e"ond its terms- or in an" wa" modif" eplicit provisions of the law* - Indeed- a Duasi-?udicial #od" or an administrative a!enc" for that matter cannot amend an act of Con!ress* 9ence- in case of a discrepanc" #etween the #asic law and an interpretative or administrative rulin!- the #asic law prevails*- To recapitulate- RR $-%&- insofar as it restricts the de,nition of =!oods= as #asis of transitional input ta credit under +ection /0& is a nullit"*