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Case Digest 82322
Case Digest 82322
Ruling:
ISSUE:
No, RA 8189 Sec 44 is not unconstitutional. It has Whether or not all laws shall be published in the
not violated the equal protection clause. It is official gazette.
intended to ensure the impartiality of election
officials by preventing them from developing
familiarity with the people of their place of RULING:
assignment. Large-scale anomalies in the
registration of voters cannot be carried out The Court hereby orders respondents to publish
without the complicity of election officers, who in the Official Gazette all unpublished
are the highest representatives of Comelec in a presidential issuances which are of general
city or municipality. application, and unless so published, they shall
The petition is DISMISSED; and the have no binding force and effect.
constitutionality and validity of Section 44 of RA The court held that all statute including those of
8189 UPHELD. No pronouncement as to costs. local application shall be published as condition
for their effectivity, which shall begin 15 days
G.R. No. L-63915 after publication unless a different effectivity
date is fixed by the legislature.
December 29, 1986
The publication must be full or no publication at
Tanada v. Tuvera
all since its purpose is to inform the public of the
content of the laws. The clause “unless
FACTS:
otherwise provided” in Article 2 of the new Civil
Petitioners Lorenzo M. Tanada, et. al. invoked
Code meant that the publication required
due process in demanding the disclosure of a
therein was not always imperative, that the
number of Presidential Decrees which they
publication when necessary, did not have to be
claimed had not been published as required by
made in the official gazette.
Law. The government argued that while
publication was necessary as a rule, it was not so FACTS:
when it was otherwise provided, as when the On 11 March 1991, CIR Jose U. Ong issued
decrees themselves declared that they were to Revenue Memorandum Order (RMO) No.
become effective immediately upon approval. 15-91 classifying pawnshops as lending
The court decided on April 24, 1985 in affirming investors and therefore imposing a 5%
the necessity for publication of some of the lending investor’s tax on pawnshops. This
RMO was clarified by Revenue We rule in the negative.
Memorandum Circular (RMC) No. 43-91 on While it is true that pawnshops are engaged
27 May 1991. Pursuant to these issuances, the in the business of lending money, they are not
BIR issued an Assessment Notice against considered “lending investors” for the
Lhuillier demanding payment of deficiency purpose of imposing the 5% percentage
percentage tax in the sum of P3,360,335.11 taxes.
for 1994 inclusive of interest and surcharges. Pawnshops and lending investors were, in
fact, subjected to different tax treatments
On 3 October 1997, Lhuillier filed an under the Tax
administrative protest with the Office of The petition is hereby DISMISSED for lack
the Revenue Regional Director contending, of merit. The decision of the court of appeals
inter alia, that pawnshops are different from of 20, November 2001 in CA-G.R SP
lending investors, which are subject to the 5% No.62463 is AFFIRMED.
percentage tax under the specific provision of
the Tax Code, and that RMO No. 15-91 Code.
impliedly amends the Tax Code and is Moreover, Congress never intended
therefore taxation by implication, which is pawnshops to be treated in the same way as
proscribed by law. lending investors. Both the NIRC of 1986 and
the NIRC of 1977 dealt with pawnshops and
Deputy BIR Commissioner Panganiban lending investors differently. Verily then, it
issued a Warrant of Distraint and/or Levy was the intent of Congress to deal with both
against Lhuillier’s property for the subjects differently. Hence, we must likewise
enforcement and payment of the assessed interpret the statute to conform with such
percentage tax. legislative intent.
Its protest having been unacted upon, Furthermore, RMC No. 43-91 and RMO No.
Lhuillier elevated the matter to the CIR. Still, 15-91 lacked publication. RMO No. 15-91
the protest was not acted upon by the CIR. and RMC No. 43-91 were issued in
Thus, Lhuillier filed an appeal with the CTA. accordance with the power of the CIR to
make rulings and opinions in connection with
The CTA rendered a decision declaring the implementation of internal revenue laws,
RMO No. 15-91 and RMC No. 43-91 null which was bestowed by then Section 245 of
and void insofar as they classify the NIRC of 1977, as amended by E.O. No.
pawnshops as lending investors subject to 273. Such power of the CIR cannot be
5% percentage tax. controverted.
Dissatisfied, the CIR filed a petition for However, the CIR cannot, in the exercise of
review with the CA, which affirmed the CTA such power, issue administrative rulings or
decision. circulars not consistent with the law sought to
Hence, this petition. be applied. Indeed, administrative issuances
must not override, supplant or modify the
ISSUE: law, but must remain consistent with the law
Whether pawnshops are considered lending they intend to carry out. Only Congress can
investors for the purpose of imposing repeal or amend the law.
percentage tax.
RULING:
G.R. No. 179579 01 February 2012 When an administrative rule is merely
Ponente: J. Sereno interpretative in nature, its applicability needs
nothing further than its bare issuance, for it gives
Topic: Statutory construction, effectivity of
no real consequence more than what the law
statutes
itself has already prescribed. When, on the other
Laws: Book VII, Chapter 2, Revised hand, the administrative rule goes beyond
Administrative Code merely providing for the means that can
facilitate or render least cumbersome the
Doctrine: Failure to follow the basic implementation of the law but substantially
requirements of hearing and publication under increases the burden of those governed, it
the Revised Administrative Code invalidates an behooves the agency to accord at least to those
agency’s regulation. directly affected a chance to be heard, and
thereafter to be duly informed, before that new
issuance is given the force and effect of law.
Thesis:
Issue/Ruling:
• On November 7, 2003, petitioner COC
Whether or not CMO No. 27-2003 is valid. issued CMO 27-2003, which for tariff purposes,
classifies wheat according to the (1) importer or
consignee; (2) country of origin; and (3) port of
Customs Memorandum Order 27-2003 is discharge. Depending on these factors, wheat
declared INVALID and OF NO FORCE AND would then be classified either as food grade or
EFFECT. It was issued without following the feed grade with a corresponding tariff of 3% and
mandate of the Revised Administrative Code on 7% respectively.
public participation, prior notice, and publication
or registration with the University of the • On December 19, 2003, the respondent,
Philippines Law Center. Petitioners violated a wheat importer, filed a Petition for Declaratory
respondent’s right to due process in the issuance Relief with the RTC of Las Pinas contending that
of CMO 27-2003 when they failed to observe the CMO 27-2003 was issued without following the
requirements under the Revised Administrative mandate of the Revised Administrative Code on
Code. public participation, prior notice, and publication
or registration with the University of the
Philippines Law Center.
• On 19 January 2004, the RTC issued a Topic: Statutory construction,
Temporary Restraining Order (TRO) effective for effectivity of statutes
twenty (20) days from notice.
• On 28 February 2005, the RTC ruled in Republic Act No. 3019, ANTI-
favor of respondent, declaring CMO 27-2003 as GRAFT AND CORRUPT
PRACTICES ACT
INVALID and OF NO FORCE AND EFFECT, citing
the petitioner’s failure to follow the basic
requirements of hearing and publication in the
Doctrine: Where the law is clear, plain and
issuance of the CMO.
free from ambiguity, it must be
• Petitioners appealed to the CA, raising given its literal meaning and
the same allegations in defense of CMO 27-2003. applied without any
interpretation or even
• CA dismissed the appeal, holding that construction.
the regulation affected substantial rights of
petitioners and other importers and that the
petitioners should have observed the Laws shall have only a
requirements of notice, hearing and publication. prospective effect and must not
be applied retroactively in such a
way as to apply to pending
G.R. No. 173615 (EB) disputes and cases. Lex prospicit,
non respicit (the law looks
16 Oct. 2009 forward and not backward.
Ponente: J. Peralta
Issue/Ruling:
1
Section 6 of E.O. No. 80, also known as the Revised Corporation Code, this Charter shall cease to have
Charter of PNB, treats of the effects of converting force and effect, and shall be deemed repealed. Any
the bank into a private financial and banking special privileges granted to the Bank such as the
institution. It states: authority to act as official government depositary, or
restrictions imposed upon the Bank, shall be
Section 6. Change in Ownership of the Majority of withdrawn, and the Bank shall thereafter be
the Voting Equity of the Bank. - When the ownership considered a privately organized bank subject to the
of the majority of the issued common voting shares laws and regulations generally applicable to private
passes to private investors, the stockholders shall banks. The Bank shall likewise cease to be a
cause the adoption and registration with the government-owned or controlled corporation
Securities and Exchange Commission of the subject to the coverage of service-wide agencies
appropriate Articles of Incorporation and revised by- such as the Commission on Audit and the Civil
laws within three (3) months from such transfer of Service Commission.
ownership. Upon the issuance of the certificate of
2
incorporation under the provisions of the
Whether E.O. No. 80 has the effect of govern acts committed by the bank’s
removing from the jurisdiction of the employees after privatization.
CSC the appeal of respondent which
was already pending before the CSC at
the time the said law converted PNB WHEREFORE, the petition is DENIED. The
into a private banking institution. January 3, 2006 Decision of the Court of
Appeals in CA-G.R. SP No. 50084, which
reversed and set aside CSC Resolution Nos.
No. PNB believes that while indeed 980716 and 983099 and ordered the remand
jurisdiction ordinarily continues until the of the case to the CSC for further
termination of the case, it advances the proceedings, is hereby AFFIRMED.
opinion that the rule does not apply where
the law provides otherwise or where the said
law intends to operate on cases pending at Facts:
the time of its enactment. The fact that
Section 6 of E.O. No. 80 states that PNB
would be removed from the coverage of the • 1992 - Cayetano Tejano was found
CSC must be taken to govern acts committed guilty of grave misconduct in
by the bank’s employees after privatization. connection with a number of
irregular and fraudulent
transactions PNB Cebu City Branch.
It is binding rule, conformably with Article 4 • February 24 and March 17, 1994 –
of the Civil Code, that, generally, laws shall Tejano and 8 others were
have only a prospective effect and must not administratively charged before the
be applied retroactively in such a way as to PNB Management Hearing
Committee. Tejano was charged
apply to pending disputes and cases. This is
guilty of gross misconduct in
expressed in the familiar legal maxim lex misappropriating funds and of gross
prospicit, non respicit (the law looks forward neglect in extending unwarranted
and not backward.) credit accommodations. The
Committee then recommended that
respondent be meted the penalty of
The rationale against retroactivity is easy to forced resignation without forfeiture
perceive: the retroactive application of a law of benefits.
usually divests rights that have already • June 21, 1995. – PNB Board of
become vested or impairs the obligations of Directors however, ruled that Tejano
must serve the penalty of forced
contract and, hence, is unconstitutional.
resignation with forfeiture of
Although the rule admits of certain well-
benefits.
defined exceptions such as, for instance, • May 27, 1996 – PNB had ceased to be
where the law itself expressly provides for a government-owned and controlled
retroactivity, we find that not one of such corporation, and converted into a
exceptions that would otherwise lend private banking institution by virtue
credence to petitioner’s argument obtains in of Executive Order (E.O.) No. 80.
this case. Hence, in other words, the fact • Tejano filed before CSC and
that Section 6 of E.O. No. 80 states that dismissed the respondent’s appeal for
PNB would be removed from the being filed out of time.
coverage of the CSC must be taken to • CSC required petitioner to comment.
In its Comment, petitioner theorized
that even granting respondent’s
appeal was filed on time, the same
must, nevertheless, be dismissed on
account of the privatization of
PNB which thereby removed the
case from the jurisdiction of the
CSC.
• The CSC found this argument
meritorious and, subsequently, in its
Resolution No. 98309913 dated
December 7, 1998, it denied
respondent’s reconsideration on that
ground.