Republic of the Philippines v Bacolod-Murcia
GR No. L-19824, L-19825, L-19826
July 9, 1966
FACTS:
RA 632 created the Philippine Sugar Institute, a semi-public corporation. In 1951, the Institute acquired the Insular Sugar Refinery for P3.07 million payable in installments from the proceeds of the Sugar tax to be collected under RA 632. The operation of the refinery for 1954 to 1957 was disastrous as the Institute suffered tremendous losses. Contending that the purchase of refinery with money from the Institute’s fund was not authorized under RA 632, and that the continued operation of the refinery is inimical to their interest, Bacolod-Murcia Milling Co., Ma-ao Sugar Central, Talisay-Silay Milling Co. and the Central Azucarera del Danao refused to continue with their contribution to said fund. The trial court found them liable under RA 632. Hence, this petition.
ISSUE:
Are the milling companies liable?
RULING:
Yes. The special assessment or levy for the Philippine Sugar Institute Fund is not so much an exercise of the power of
taxation, nor the imposition of a special assessment, but the exercise of police power for the general welfare of the entire country. It is, therefore, an exercise of a sovereign power which no private citizen may lawfully resist.
Section 2a of the charter authorizes Philsugin to acquire the refinery in question. The financial loss resulting from the operation thereof is no means an index that the industry did profit therefrom, as other gains of a different nature (such as experience) may have been realized.
July 9, 1966
FACTS:
RA 632 created the Philippine Sugar Institute, a semi-public corporation. In 1951, the Institute acquired the Insular Sugar Refinery for P3.07 million payable in installments from the proceeds of the Sugar tax to be collected under RA 632. The operation of the refinery for 1954 to 1957 was disastrous as the Institute suffered tremendous losses. Contending that the purchase of refinery with money from the Institute’s fund was not authorized under RA 632, and that the continued operation of the refinery is inimical to their interest, Bacolod-Murcia Milling Co., Ma-ao Sugar Central, Talisay-Silay Milling Co. and the Central Azucarera del Danao refused to continue with their contribution to said fund. The trial court found them liable under RA 632. Hence, this petition.
ISSUE:
Are the milling companies liable?
RULING:
Yes. The special assessment or levy for the Philippine Sugar Institute Fund is not so much an exercise of the power of
taxation, nor the imposition of a special assessment, but the exercise of police power for the general welfare of the entire country. It is, therefore, an exercise of a sovereign power which no private citizen may lawfully resist.
Section 2a of the charter authorizes Philsugin to acquire the refinery in question. The financial loss resulting from the operation thereof is no means an index that the industry did profit therefrom, as other gains of a different nature (such as experience) may have been realized.
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