RADIO RADIO COMMUNICA COMMUNICATION TIONS S OF THE PHILIPPIN PHILIPPINES, ES, INC. (RCPI), petitioner (RCPI), petitioner, vs. PROVINCIAL AL ASSESO ASSESOR R OF vs. PROVINCI SOUTH COTABATO, COTABATO, PROVINCI PROVINCIAL AL TREASURER TREASURER OF SOUTH COTABA COTABATO, TO, MUNICIPAL ASSE ASSES SSO SOR R OF TU TUPI PI,, SO SOUT UTH H COT COTABA ABATO TO,, and and MUNICIPAL TREASURER OF TUPI, SOUTH COTABATO, respondents. respondents . FACTS: •
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Sec. 1 o) -uc l%/ -t%te- t%t te #$%ntee (/ic i- RC'I in ti- c%-e -%ll p%* te -%e t%e- %- %$e no/ o$ %* e$e%)te$ be $eui$e& b* l%/ on $e%l e-t%te, buil&in#-, %on# ote$-.
te unicip%l t$e%-u$e$ o) Tupi, Sout Cot%b%to %--e--e& RC'I $e%l p$ope$t* t%e- )$o 191 to 195 on it- $%&io -t%tion buil&in# in 8%$%n#%* %blon, %- /ell %- on it- %cine$* -e&, $%&io $el%* -t%tion to/e$ %n& it- %cce--o$ie-, %n& #ene$%tin# -et-, b%-e& on te t% &ecl%$%tionle& b* RC'I RC'I oppo-e& /it te )ollo/in# %$#uent-:
%ll it- %--e--e& p$ope$tie- %$e pe$-on%l p$ope$tie- %n& tu- eept )$o te $e%l p$ope$t* t%
A--uin# t%t te %--e--e& p$ope$tie- %$e $e%l p$ope$t*, te* %$e -till eept )$o $e%l p$ope$t* t%e-. Section 3 o) '$e-i&enti%l ec$ee No. 6 (' 6 -t%tet%t to be t%%ble, te %cine$* -oul& be %tt%ce& to te $e%l e-t%te %n& e--enti%l )o$ %nu)%ctu$in#, coe$ci%l, inin#, in&u-t$i%l, o$ %#$icultu$%l pu$po-e-. RC'I cl%ie& t%t te %--e--e& p$ope$tie- %$e not u-e& )o$ %nu)%ctu$in#, coe$ci%l, inin#, in&u-t$i%l, o$ %#$icultu$%l pu$po-e-.
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CA: o&ie& C8AA=- $ulin#
In 1957, Republic Act No. 2036 (RA 2036 !3" #$%nte& RC'I % )t*+*e%$ )$%nci-e.
In con-i&e$%tion o) te )$%nci-e, % t% eu%l to one %n& one+%l) pe$ centu o) %ll #$o-$eceipt- )$o te bu-ine-- t$%n-%cte& un&e$ ti- )$%nci-e b* te #$%ntee -%ll be p%i& to te T$e%-u$e$ o) te 'ilippine- e%c *e%$ . S%i& t% -%ll be in lieu o) %n* %n& %ll t%eo) %n* in&, n%tu$e o$ &e-c$iption le4ie&, e-t%bli-e& o$ collecte& b* %n* %uto$it* /%t-oe4e$, unicip%l, p$o4inci%l o$ n%tion%l, )$o /ic t%e- te #$%ntee i- e$eb* ep$e--l* eepte&. (in lieu o) %ll t%ecl%u-e •
RC'I- li%bilit* )o$ te )$%nci-e t% &oe- not eept RC'I )$o te $e%l p$ope$t* t%. >n&e$ RC'I- )$%nci-e, onl* pe$-on%l p$ope$tie- -uc %- $%&io euipent, %cine$* %n& -p%$e p%$t%$e eept )$o cu-to- &utie-, t%$i?- %n& ote$ t%e-.
it- )$%nci-e eept- RC'I )$o p%*in# %n* %n& %ll t%e- o) %n* in&, n%tu$e o$ &e-c$iption in ec%n#e )o$ it- p%*ent o) t% eu%l to one %n& one+%l) pe$ cent on %ll #$o-- $eceipt- )$o te bu-ine-con&ucte& un&e$ it- )$%nci-e (in lieu o) %ll t%e- cl%u-e
Te ;oc%l 8o%$& 8o%$& o) A--e--ent A--e--ent Appe%lAppe%l- (;8AA o) o$on%&%l, Sout Cot%b%to %<$e& te notice- o) %--e--ent %- 4%li& %n& con-i-tent /it te l%/ Cent$%l 8o%$& o) A--e--ent Appe%l- (C8AA &i-i--e& RC'I=- %ppe%l. Te C8AA el& t%t
Section 1 o) RA 2036, %- %en&e& b* RA 05, cle%$l* eept- RC'I )$o t% on $%&io euipent, %cine$*, %n& -p%$e p%$t- nee&e& in connection /it itbu-ine- Te$e)o$e, Te$e)o$e, RC'I RC'I i- not li%ble li%ble )o$ $e%l p$ope$t* t% on it- %cine$* %n& $%&io euipent ounte& %- %cce--o$ie- to it$el%* to/e$ A- RC'I- t% eeption co4e$- onl* it$%&io euipent, %cine$*, %n& -p%$e p%$t- e--enti%l to it- bu-ine--, it i- li%ble )o$ $e%lt* t% on it- $%&io -t%tion buil&in#, $%&io -t%tion buil&in#, %cine$* -e&, %n& $el%* -t%tion to/e$
ISS>@ N. 1: BN RC'I=- to/e$, $el%* -t%tion buil&in# %n& %cine$* -e& %$e eepte& )$o t% R>;IND: No, it i- not eept. RC'I conten&- t%t te in lieu o) %ll t%e- cl%u-e in it%en&e& %en&e& )$%nci)$%nci-e e eept eept- it )$o )$o p%*in# p%*in# %ll t%et%eote$ t%n )$%nci-e t%. It i- tu- no lon#e$ nece--%$* to &ete$ine /ete$ te to/e$, $el%* -t%tion buil&in#, %n& %cine$* -e& %$e $%&io euipent )o$ pu$po-eo) eeption )$o te $e%l e-t%te t%. The in lieu ! all "a#e$ %lau$e in Se%"in &' ! RA *+, a$ aended - RA '/', %ann" e#e0" RCPI !1 "he 1eal e$"a"e "a# -e%au$e "he $ae Se%"in Se%"in &' e#01e$$l e#01e$$l $"a"e$ $"a"e$ "ha" "ha" RCPI $hall 0a "he $ae "a#e$ # # # n 1eal e$"a"e, -uildin2$ # # #. The The in lieu lieu ! all "a#e "a#e$ $ %lau %lau$e $e in "he "hi1 "hi1d d $en"en%e ! Se%"in &' %ann" ne2a"e "he 31$" $en"en%e ! "he $ae Se%"in &', 4hi%h i0$e$ "he 1eal e$"a"e "a# n RCPI. The Cu1" u$" 2i5e e6e%" " -"h 015i$in$ ! "he $ae Se%"in &'. Eo$eo4e$, Te cle%$ l%n#u%#e o) Section 1 -t%te- t%t RC'I -%ll p%* te $e%l e-t%te t%, to /it: te #$%ntee (/ic i- RC'I in ti- c%-e -%ll p%* te -%e t%e- %%$e no/ o$ %* e$e%)te$ be $eui$e& b* l%/ on $e%l e-t%te, buil&in#-. Anote$ c%-e in point i- t%t te ei-tin# le#i-l%ti4e polic* i- cle%$l* %#%in-t te $e4i4%l o) te in lieu o) %ll t%e- cl%u-e in )$%nci-e- o) telecounic%tioncop%nie-. A!"e1 "he i0$i"in ! VAT n "ele%uni%a"in$ %0anie$ "7 e6e%" n 8anua1 &, &99+, Cn21e$$ never a2ain a2ain in%luded "he :in lieu ! all "a#e$ %lau$e; in an "ele%uni%a"in$ !1an%hi$e i" $u-$e
$0e%i3% "a#, unde1 "he Na"inal In"e1nal Re5enue Cde, -u" al$ all "a#e$ unde1 "he1 a00li%a-le la4$. One ! "he other applicable laws i$ "he L%al =5e1nen" Cde ! &99&, 4hi%h e04e1$ l%al 25e1nen"$ " i0$e a !1an%hi$e "a# n "ele%uni%a"in$ %0anie$.
I" i$ an eleen"a1 1ule in "a#a"in "ha" e#e0"in$ a1e $"1i%"l %n$"1ued a2ain$" "he "a#0ae1 and li-e1all in !a51 ! "he "a#in2 au"h1i". I" i$ "he "a#0ae1$ du" " >u$"i! "he e#e0"in - 41d$ " 0lain " -e i$"a7en and " %a"e21i%al " -e i$in"e101e"ed.
ISS>@ N. 2: BN RC'I c%n in4oe te eu%lit* o) t$e%tent cl%u-e un&e$ RA 7925 /ic %n&%te- te eu%lit* o) t$e%tent o) -e$4ice p$o4i&e$- in te telecounic%tion- in&u-t$*
ISS>@ N. 3: BN %ppell%te cou$t e$$e& /en it &i& not $e-ol4e te i--ue o) nullit* o) te t% &ecl%$%tion- %n& %--e--ent- &ue to non+inclu-ion o) &ep$eci%tion %llo/%nce
R>;IND: No. RC'I c%nnot %l-o in4oe te eu%lit* o) t$e%tent cl%u-e un&e$ Section 23 o) Republic Act No. 7925.!22" Te )$%nci-e- o) S%$t,!23" I-l%co, !2" TeleTec,!25" 8ell,!26" E%Go$ Teleco-, !27" I-l%n& Count$*,!2" %n& I-l%Tel, !29" %ll ep$e--l* &ecl%$e t%t te )$%nci-ee -%ll p%* te $e%l e-t%te t%, u-in# /o$&-iil%$ to Section 1 o) RA 2036, %- %en&e&. Te p$o4i-ion- o) te-e -ub-euent telecounic%tion )$%nci-e- ipo-in# te $e%l e-t%te t% on )$%nci-eeonl* con$ t%t RC'I i- -ubGect to te $e%l e-t%te t%.
R>;IND: No. RC'I conten&- t%t te t% &ecl%$%tion- %n& %--e--ent- co4e$in# it- $%&io $el%* -t%tion to/e$, $%&io -t%tion buil&in#, %n& %cine$* -e& %$e 4oi& bec%u-e te %--e--o$- &i& not con-i&e$ &ep$eci%tion %llo/%nce in tei$ %--e--ent-. >n&e$ te Re%l '$ope$t* T% Co&e &ep$eci%tion %llo/%nce %pplie- onl* to %cine$* %n& not to $e%l p$ope$t*.
