Case Digest (G.R. No. L-40296)
Facts:
Allied Thread Co., Inc. and Ker & Company, Ltd. v. Hon. City Mayor of Manila, et al., G.R. No. L-40296, November 21, 1984, the Supreme Court En Banc, Abad Santos, J., writing for the Court.
Petitioners Allied Thread Co., Inc. (manufacturer of sewing thread and yarn) and Ker & Company, Ltd. (its sales broker) challenged the validity and application of Manila Ordinance No. 7516, as amended by Ordinance Nos. 7544, 7545 and 7556. Respondents were the Honorable City Mayor of Manila, the Honorable City Treasurer of Manila, and Hon. Lorenzo Relova in his capacity as Presiding Judge, Branch II, Court of First Instance (CFI) of Manila.
On June 12, 1974 the Municipal Board of Manila enacted Ordinance No. 7516; the Mayor approved it on June 15, 1974. The ordinance imposed an annual business tax, collectible quarterly, upon manufacturers, importers or producers doing business in Manila, with rules for recording sales by branches and allocating sales recorded in the principal office (60% taxable by Manila if the principal office is in Manila; 40% allocated to localities where factories are situated). The basic ordinance was subsequently amended by Ordinance No. 7544 (June 19, 1974), Ordinance No. 7545 (enacted June 20, 1974, approved June 27, 1974) and Ordinance No. 7556 (enacted July 20, 1974, approved July 29, 1974).
Petitioners allege that Ordinance No. 7516 as amended is invalid because (1) its amendments were enacted after the deadline set by Section 54 of Presidential Decree No. 426 and Local Tax Regulation No. 1-74 (which, petitioners contend, required enactment by June 15, 1974 for ordinances intended to take effect July 1, 1974); (2) the ordinance was not published in a newspaper of general circulation as required by Section 43 of the Local Tax Code; and (3) Allied Thread should be excluded because it does not operate or maintain a branch or sales office in the City of Manila (its factory and principal office are in Pasig, Rizal) and sells in Manila through the broker Ker & Company.
On July 22, 1974 petitioners filed a petition for Declaratory Relief in the Court of First Instance of Manila. The CFI (presided by Judge Lorenzo Relova)...(Subscriber-Only)
Issues:
- Was Ordinance No. 7516, as amended, valid and enforceable despite subsequent amendments made after June 15, 1974 in light of Section 54 of P.D. No. 426 and Local Tax Regulation No. 1-74?
- Did the City of Manila satisfy the publication requirement of Section 43 of the Local Tax Code when it posted copies of the ordinance in public buildings and places instead of publishing in a newspaper of general circulation?
- Is petitioner Allied Thread Co., Inc. subject to the business tax imposed by Ordinance No. 7516 as amended even though it has no branch or sales office in the City of...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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