Case Digest (G.R. No. 207140)
Facts:
National Power Corporation v. Provincial Government of Bulacan, et al., G.R. No. 207140, January 30, 2023, Supreme Court Second Division, Lopez, M., J., writing for the Court. Petitioner National Power Corporation (NPC), a government-owned and controlled corporation, owned and operated the Angat Hydroelectric Power Plant in Norzagaray, Bulacan. Respondents were the Municipal Government of Norzagaray, its Municipal Assessor Gloria P. Sta. Maria, and the Provincial Government of Bulacan.On December 12 and 14, 2006 the Municipal Assessor issued two Notices of Assessment: a Machineries Assessment covering January 1, 1996 to December 31, 2005 (total tax asserted PHP 113,960,000.00) and a Land Assessment covering January 1, 1997 to December 31, 2006 (originally PHP 82,845,188.60, later revised by the assessor). NPC protested administratively before the Local Board of Assessment Appeals (LBAA) of Bulacan, claiming (1) the machineries were exempt under Section 234(c) of the Local Government Code (LGC) because they are actually, directly and exclusively used to generate/transmit electricity, and (2) the land assessment used an incorrect 40% assessment level instead of 10% for GOCCs under Section 218(d) of the LGC.
The LBAA (August 14, 2008) denied NPC’s petition, finding NPC failed to prove actual, direct and exclusive use and holding payment under protest a prerequisite. NPC appealed to the Central Board of Assessment Appeals (CBAA), which dismissed the appeal (August 26, 2010), after hearings and ocular inspections, concluding the dam complex was multi-purpose (irrigation, water supply, flood control, and some power generation) and thus not exclusively used for power generation. NPC then filed a petition with the Court of Tax Appeals (CTA) En Banc (CTA EB No. 850). The CTA En Banc (Decision dated November 29, 2012; Resolution dated April 22, 2013) denied NPC’s petition for lack of cause of action and for failure to pay the tax under protest pursuant to Section 252 of the LGC, affirming the CBAA. NPC sought relief in this Court by a Petition for Review on certiorari under Rule 45.
While the Rule 45 petition was pending, the Provincial Treasurer issued a Warrant of Levy (November 4, 2013); the Court issued a Temporary Restraining Order (TRO) on November 25, 20...(Subscriber-Only)
Issues:
- Is compliance with the payment-under-protest requirement in Section 252 of the Local Government Code a condition sine qua non to question a real property tax assessment before the Local Board of Assessment Appeals?
- Are the eleven properties listed in the Machineries Assessment exempt from real property tax under Section 234(c) (or alternatively Section 234(e)) of the Local Government Code?
- Are the properties listed in the Land Assessment exempt from real property tax or other...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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