Case Digest (G.R. No. 168557) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In FELS Energy, Inc. and National Power Corporation v. Province of Batangas, decided on February 16, 2007 under the 1987 Constitution, the National Power Corporation (NPC) entered on January 18, 1993 into a five-year Energy Conversion Agreement with Polar Energy, Inc. for three 30 MW diesel engine power barges moored at Balayan Bay, Calaca, Batangas, with Article 10.1 obligating NPC to pay all real estate taxes on the barges. Polar assigned its rights to FELS Energy, Inc. (FELS), which on August 7, 1995 received a Batangas Provincial Assessor, Lauro C. Andaya, assessment of ₱56,184,088.40 per annum covering 1994 real property taxes. FELS empowered NPC to seek reconsideration on September 7, 1995, but the motion was denied on September 22, 1995. NPC then appealed to the Local Board of Assessment Appeals (LBAA), which on August 26, 1996 dismissed the petition as untimely, held the barges to be real property under Section 199(c), and ordered FELS to pay. FELS appealed to the Centra Case Digest (G.R. No. 168557) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Contractual Relationship and Tax Assessment
- On January 18, 1993, the National Power Corporation (NPC) entered into a five-year Energy Conversion Agreement with Polar Energy, Inc. for 3×30 MW diesel engine power barges moored at Balayan Bay, Calaca, Batangas. Article 10.1 of the Agreement made NPC responsible for all real estate taxes on the barges.
- Polar assigned its rights under the Agreement to FELS Energy, Inc. (FELS). On August 7, 1995, the Batangas Provincial Assessor assessed the barges as real property for 1994 and 1995, imposing P56,184,088.40 per annum.
- Administrative Proceedings
- NPC sought reconsideration of the assessment (Sept. 7, 1995); the Provincial Assessor denied it (Sept. 22, 1995). NPC then appealed to the Local Board of Assessment Appeals (LBAA), which on August 26, 1996 dismissed the petition as filed out of time and upheld the assessment.
- FELS appealed to the Central Board of Assessment Appeals (CBAA). A warrant of distraint was issued (Aug. 28, 1996) but lifted (Nov. 15, 1996). On April 6, 2000, the CBAA reversed the LBAA, exempting the barges under LGC §234(c). On July 31, 2001, the CBAA reversed itself, affirmed the LBAA, and denied reconsideration (Oct. 19, 2001).
- Judicial Proceedings
- FELS filed CA-G.R. SP No. 67490; NPC filed CA-G.R. SP No. 67491. The Court of Appeals denied both petitions—SP 67490 (Aug. 25, 2004) and SP 67491 (Feb. 9, 2005)—on prescription grounds; motions for reconsideration were denied (June 20 and Nov. 23, 2005).
- NPC’s petition to the Supreme Court in G.R. No. 165113 was dismissed (Nov. 8, 2004; recon. denied Jan. 19, 2005). The Supreme Court consolidated FELS’s G.R. No. 168557 and NPC’s G.R. No. 170628 (March 8, 2006), where they raised issues on prescription, the tax nature of the barges, exemption, payment liability, depreciation, and imprescriptibility.
Issues:
- Jurisdictional
- Whether the appeal to the LBAA was timely or barred by prescription.
- Whether res judicata and forum shopping bar the Supreme Court petitions.
- Substantive
- Are floating power barges movable personal property or real property subject to real property tax?
- If real property, are they exempt under Section 234(c) of the Local Government Code (LGC)?
- Who is liable to pay the real estate tax—NPC or FELS?
- Are the barges subject to depreciation if deemed real property?
- Is the right to question the assessment imprescriptible?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)