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Ormoc Sugar Company Vs. Treasurer Of Ormoc City Case Digest Ormoc Sugar Company Vs.

Treasurer Of Ormoc City 22 SCRA 603 L-23 !" #e$ruary % & %!6'

#acts( On )anuary 2!& %!6"& t*e +unicipa, -oar. of Ormoc City passe. Or.inance /o. "& Series of %!6"& imposing 0on any an. a,, pro.uctions of centrifuga, sugar mi,,e. at t*e Ormoc Sugar Company& 1nc.& in Ormoc City a municipa, ta2 e3ui4a,ent to one per centum 5%67 per e2port sa,e to t*e 8nite. States of America an. ot*er foreign countries.0 9ayments for sai. ta2 :ere ma.e& un.er protest& $y Ormoc Sugar Company& 1nc. on +arc* 20& %!6" for 9 & 0' .;0 an. on Apri, 20& %!6" for 9;& 000& or a tota, of 9%2& 0' .;0.

On )une %& %!6"& Ormoc Sugar Company& 1nc. fi,e. $efore t*e Court of #irst 1nstance of Leyte& :it* ser4ice of a copy upon t*e So,icitor <enera,& a comp,aint against t*e City of Ormoc as :e,, as its Treasurer& +unicipa, -oar. an. +ayor& a,,eging t*at t*e afore-state. or.inance is unconstitutiona, for $eing 4io,ati4e of t*e e3ua, protection c,ause 5Sec. %=%>& Art. 111& Constitution7 an. t*e ru,e of uniformity of ta2ation 5Sec. 22=%>7& Art. V1& Constitution7.

Ans:ering& t*e .efen.ants asserte. t*at t*e ta2 or.inance :as :it*in .efen.ant city?s po:er to enact un.er t*e Loca, Autonomy Act an. t*at t*e same .i. not 4io,ate t*e afore-cite. constitutiona, ,imitations. After pre-tria, an. su$mission of t*e case on memoran.a& t*e Court of #irst 1nstance& on August 6& %!6"& ren.ere. a .ecision t*at up*e,. t*e constitutiona,ity of t*e or.inance an. .ec,are. t*e ta2ing po:er of .efen.ant c*artere. city $roa.ene. $y t*e Loca, Autonomy Act to inc,u.e a,, ot*er forms of ta2es& ,icenses or fees not e2c,u.e. in its c*arter.

1ssue(

@*et*er or /ot t*e or.inance is unconstitutiona, for $eing 4io,ati4e of t*e e3ua, protection c,ause un.er Sec. %=%>& Art. 111& Constitution.

@*et*er or not it :as 4io,ati4e of t*e ru,e of uniformity of ta2ation un.er t*e -i,, of Rig*ts& Sec. 22=%>& Art. V1& Constitution.

. as t*e entity to $e .. or.e.e ar$itrariness& t*e same $eing t*en presume. protection of t*e . of t*e re3uisites instant. upon.ant pai. -ina.ica$.ant& *o:e4er& is not entit.is*e.istinctions :*ic* maCe rea.ies on. .assification is reasona$. to refun.itions as :e.entica.. of rig*ts pro4i.are. ..inance pro4i.ass as p. e2c.y to present con.as& @e ru.are..er protest.itions $ut a.0 p. from is *ere$y re4erse.. t*at t*e e3ua.ector of 1nterna. T*e ta2ing or. .aintiff& for t*e co4erage of t*e ta2.oes not meet t*em& for it ta2es on. un. So or.e. a c. to t*ose of t*e presentD 5"7 t*e c.. t*e 9%2&0' ..a:s. $ecause t*e ta2es :ere not ar$itrari.y co.ants-appe.ong to t*e same c. to interestD on t*e refun.es( 0.y i.. an.efen. 1117 1n #e. nor s*a.assification of t*e su$Bect of .inance?s enactment& Ormoc Sugar Company& 1nc. . none ot*er.y s*o:s t*at t*e 3uestione.u. an..ar an.ater a simi. unconstitutiona.:a 4s. protection c.u.& t*e c*a.y esta$. or.y centrifuga. any person $e .ere.( T*e Constitution in t*e $i. % =%>& Art.enie.y to persons or t*ings i.ection& t*e or.inance .y to t*ose :*o $e. t*e .aintiff-appe.usi4e as to e2c.. .egis.. Re4enue 4. e2porte. 6 At t*e time of co.assification& to $e reasona$.. ot*er:ise.. .Ae. Appe. /o costs.enge. on su$stantia.uce..& t*e c.e4ie.0 5Sec..ar company is set up& it cannot $e su$Bect to t*e ta2 $ecause t*e or. sugar centra..$agan7.ifferencesD 527 t*ese are germane to t*e purpose of t*e .ec.e.ecision appea. unti.a:D 537 t*e c. t*e e3ua.assification app. As it is no:& e4en if .& of t*e same c.entica. $e in terms app.ies on.. @*erefore& t*e .e any su$se3uent.inance e2press. A perusa. sugar pro.ause app. constitutiona.itions :*ic* are su$stantia.ere.so to future con.ees are *ere$y or.y to Ormoc City Sugar Company& 1nc. an.ecte.oes not $ar a reasona$. .assification app.e c. 5Co. $y t*e Ormoc Sugar Company& 1nc. a sufficient $asis to prec. At t*e time of t*e ta2ing or. in t*e city of Ormoc.y points on.y sugar centra.e& s*ou. Sa.ies not on.inance is .ass.e :*ere 5%7 it is $ase.inance s*ou.& it is true& :as t*e on.e to future con..y situate. not $e singu.ation& an. an.ec. Sti.e.

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