(2) REPUBLIC v. PILIPINAS SHELL, GR 173918, April 8, 2008 [Per J.

Chico-Nazario, Third Division]

ISSUE: Whether or not publication can be dispensed with if the public already has knowledge of
the law

FACTS: Last December 1991, the Office of Energy Affairs, now Department of Energy (DOE),
informed Pilipinas Shell to settle the deficiency of its contributions to the Oil Price
Stabilization Fund (OPSF) for foreign exchange risk charge and consequently, a surcharge
due to late payment referenced to MOF Circular 1-85. Shell paid in full the principal
amount of its underpayment but not the surcharges claiming that MOF Circular 1-85 was
not published in the Official Gazette or in any newspaper of general circulation nor was it
filed in the Office of the National Administration Register (ONAR), thereby rendering it
ineffective. DOE however insists that the registration of MOF Circular 1-85 with the ONAR
is no longer necessary since the respondent knew of its existence, despite its non-
registration. It also argues that MOF Circular 1-85 has been affirmed by duly published
Executive Order No. 137 and therefore, cannot be rendered invalid even if it was not
filed in ONAR.

RULING: No, publication cannot be dispensed with even if the public has already a knowledge of
the law.

Following the doctrine of Tanada vs Tuvera, administrative rules and regulations must be
published if their purpose is to enforce or implement existing law pursuant to a valid
delegation. Additionally, under Section 3 of Chapter 2, Book VII of the Administrative
Code of 1987, rules which was already in force upon the effectivity the Code should be
filed with the ONAR within three months.

In this case, MOF Circular 1-85, which is intended to enforce Presidential Decree No.
1956, was not been published in the Official Gazette or in any newspaper of general
circulation nor was it filed in ONAR.

Hence, said circular is rendered ineffective and cannot be used as basis of any sanction
against any party or persons. The due process requirements of publication and filing
cannot be disregarded as these are guarantees to the constitutional right to due process
and to information on matters of public concern and, therefore, require strict
compliance. Pilipinas Shell cannot therefore be held liable for the surcharge due to late
payment of foreign exchange risk charges.