Case Summary (G.R. No. L-49336)
Jurisdictional and Procedural Defects
Counsel for the Province stressed that P.D. 464 bars judicial assaults on tax assessments absent prior payment under protest and exhaustion of the Local Board of Assessment Appeals. The rules of court likewise limit declaratory relief to questions that arise before any breach of rights under a statute or regulation. By proceeding directly to adjudication, the judge bypassed these mandatory procedural safeguards, thereby depriving the Province of its right to due process.
Constitutional Framework for Tax Exemption
Under the 1935 Constitution, “[c]emeteries, churches, and parsonages or convents appurtenant thereto, and all lands, buildings, and improvements used exclusively for religious, charitable, or educational purposes shall be exempt from taxation.” The court noted that the Constitution in force at decision added requirements of “actual” and “direct” use, underscoring that exemption provisions are not to be presumed and must be strictly construed against the claimant.
Requirement of Strict Proof and Strictissimi Juris Construction
Citing longstanding precedent, the court affirmed that tax exemptions are never favored and must be demonstrated by clear evidence. The Church’s petition merely alleged that its properties were “actually, directly, and exclusively” used for religious and charitable purposes. Absent any evidentiary hearing or proof, respondent Judge erred in accepting those allegations at face value and granting exemption summarily.
Denial of Due Proce
...continue readingCase Syllabus (G.R. No. L-49336)
Procedural History
- Petition for certiorari and mandamus filed by the Province of Abra, through its Provincial Assessor, Ladislao Ancheta.
- Private respondent (Roman Catholic Bishop of Bangued, Inc.) had sought a declaratory relief to exempt certain real properties from taxation.
- Respondent Judge Hernando denied the Province’s motion to dismiss the declaratory relief action (Annex F).
- Respondent Judge then granted summary judgment in favor of the Bishop’s petition for exemption without hearing the Province’s answer or observing procedure (Annex J).
- Petition raises due process and procedural irregularity claims under the Rules of Court and Presidential Decree No. 464.
Facts
- The Province of Abra assessed real estate taxes on properties owned by the Roman Catholic Bishop of Bangued, Inc.
- The Bishop, represented by Bishop Odilo Etspueler and Reverend Felipe Flores, filed for a declaration of tax exemption.
- The petition alleged that the properties were “actually, directly and exclusively” used for religious and charitable purposes, including support of the parish priest and helpers.
- No administrative remedies under PD No. 464 were exhausted, nor was any payment under protest made before filing in court.
Issues
- Whether the Court of First Instance had jurisdiction and complied with procedural requirements in entertaining the declaratory relief petition.
- Whether the respondent judge violated procedural due process by denying a hearing and deciding on summary judgment without petitioner’s participation.
- Whether compliance with exhausting administrative remedies and payment under protest is a condition precedent to judicial relief in tax assessment challenges.
- Whether the Bishop’s properties qualify for tax exemption under the present Constitution’s stricter “actually, directly and exclusively” requirement.
Arguments of Petitioner (Province of Abra)
- The trial court ignored key provisions of the Rules of Court, including Rule 64 on declaratory relief prerequisites.
- Procedural