Case Digest (G.R. No. 132269)
Facts:
Harrison Motors Corporation v. Rachel A. Navarro, G.R. No. 132269, April 27, 2000, Supreme Court Second Division, Bellosillo, J., writing for the Court. Petitioner is Harrison Motors Corporation; respondent is Rachel A. Navarro, owner of RN Freight Lines.In June 1987 petitioner, through its president Renato Claros, sold two Isuzu Elf trucks to respondent. Prior to the sale, Claros represented that all BIR taxes and customs duties on the imported component parts used to assemble the trucks had been paid. Petitioner assembled the trucks using imported parts and was a known importer/assembler/manufacturer.
Between September 1987 and June 1988 various administrative instruments were issued: a BIR–LTO Memorandum of Agreement (MOA) dated 10 September 1987 requiring a BIR Certificate of Payment before LTO registration of vehicles assembled from imported parts; Customs Memorandum Order No. 44-87 (10/12/87) and BIR Revenue Memorandum Order No. 44-87 (18/12/87) prescribing procedures for voluntary payment and issuance of certificates; and a tripartite MOA among the BIR, BOC and LTO dated 16 June 1988 reinforcing the need for certificates proving payment of taxes and duties before registration.
In December 1988 government agents seized respondent’s two trucks when unpaid BIR taxes and customs duties were discovered. The BIR and BOC demanded payment of assessments or impoundment would follow. Respondent asked Claros for receipts proving payment; he refused. To secure the release of her trucks and continue business operations, respondent paid assessments totaling P32,943.00 (itemized in the record), then demanded reimbursement from petitioner; petitioner refused.
Respondent filed suit for sum of money on 24 September 1990 in the Regional Trial Court (RTC) of Makati. The RTC declared petitioner in default on 24 May 1991; respondent was allowed to present evidence ex parte and petitioner’s later Motion to Lift Default (filed 2 December 1991) was denied for lack of an affidavit of merit. On 5 March 1992 the RTC (Judge Buenaventura J. Guerrero) ordered petitioner to reimburse respondent P32,943.00, to pay attorney’s fees of P7,500.00 and costs. The Court of Appeals ...(Pro-only)
Issues:
- Did the Memorandum Orders and Memoranda of Agreement impose additional tax obligations retroactively so as to impair the contract between petitioner and respondent or otherwise violate the principle of non‑retroactivity and the constitutional non‑impairment clause?
- Is petitioner liable to reimburse respondent for the taxes and customs duties she paid to secure the release of the trucks, despite the sale having been consummated before the ...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)