Title
Netran, Inc. vs. Bacolod City
Case
G.R. No. L-29961
Decision Date
Aug 31, 1970
The court ruled in favor of the transportation company, declaring the City Council's ordinance null and void due to lack of authority.
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Case Digest (G.R. No. L-29961)

Facts:

  • The case is Netran, Inc. vs. Bacolod City and Miguel Reynaldo, decided on August 31, 1970, under G.R. No. L-29961.
  • The dispute arose from Ordinance No. 875, enacted by the Bacolod City Council, which imposed graduated annual license fees on transportation operators.
  • Netran, Inc. is a public utility operator transporting goods and passengers between Bacolod City and various locations.
  • The company complied with all licensing and fee requirements under the Land Transportation Code and the Public Service Act, paying a 2% privilege franchise tax on gross collections.
  • Netran's vehicles were prohibited from operating within Bacolod City limits due to a prior ordinance.
  • Despite this, the Bacolod City government collected graduated license fees from Netran, which paid P920.00 under protest for 1967.
  • Netran filed a complaint in the Court of First Instance of Negros Occidental, seeking to declare the ordinance null and void.
  • The court ruled in favor of Netran, declaring the ordinance void based on the Land Transportation and Traffic Code and the Local Autonomy Act.
  • The City and its Treasurer appealed the decision.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court affirmed the lower court's decision, declaring Ordinance No. 875 null and void.
  • The court held that the ordinance was unauthorized as it conflicted with Republic Act 587 and Republic Act 4136, wh...(Unlock)

Ratio:

  • The Supreme Court's ruling was based on the interpretation of legislative powers and the hierarchy of laws.
  • The court noted that the City Council's authority to tax motor vehicles, as per Section 17(a) of the Bacolod City Charter, was repealed by Republic Act 587 and Republic Act 4136.
  • These laws limited the imposition of taxes or fees ...continue reading

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