Ancheta, Eros Freuy B. Ancheta, Eros Freuy B. Statutory
Statutory ConstructioConstructionn
How a require of title is construed How a require of title is construed
Insular Lumber Co. Vs Court of Appeals 104 SCRA 10 Insular Lumber Co. Vs Court of Appeals 104 SCRA 10 !acts"
!acts"
Insular Lumber Company, purchased manufactured oil and motor fuel which it used Insular Lumber Company, purchased manufactured oil and motor fuel which it used in
in the the opeoperaratiotion n of of its its forforest est conconcescessiosion, n, sawsawmilmill, l, plaplannnning ing milmills, ls, powpower er uniunits,ts, ehicles, dry !ilns, water pumps, lawn mowers, and in furnishing free water and ehicles, dry !ilns, water pumps, lawn mowers, and in furnishing free water and light to its employees, on which speci"c ta#
light to its employees, on which speci"c ta# was paid.was paid.
In $%&', (epublic Act )o. $*+& was passed. Section & thereof proides that there In $%&', (epublic Act )o. $*+& was passed. Section & thereof proides that there should be a partial ta# refund to those using oil in the operation of forest and mining should be a partial ta# refund to those using oil in the operation of forest and mining concessions.
concessions. n
n -ec-ecembember er , , $%'$%'*, *, the the ComCompanpany y "le"led d witwith h the the ComCommismissiosioner ner of of IntInterernanall (eenue, claiming for refund of /$%,%$.+0 representing &1 of the speci"c ta# (eenue, claiming for refund of /$%,%$.+0 representing &1 of the speci"c ta# pai
paid d on on the manufthe manufactacturured ed oil and oil and fufuel el usused ed in in its operaits operatiotions ns purpursusuant to ant to thethe proisions of Section &, (epublic Act )o. $*+&
proisions of Section &, (epublic Act )o. $*+& 2he
2he commissioner commissioner denied denied the the Company3s Company3s claim claim for for refund refund on on the the ground ground that that thethe priilege of partial ta# refund granted by Section & of (epublic Act )o. $*+& is only priilege of partial ta# refund granted by Section & of (epublic Act )o. $*+& is only e4ectie & years from its enactment. 5ence, in $%'$ the said the date e4ectiity of e4ectie & years from its enactment. 5ence, in $%'$ the said the date e4ectiity of said has e#pired. Conse6uently, oil used in such concession after 7une $*, $%'$ are said has e#pired. Conse6uently, oil used in such concession after 7une $*, $%'$ are sub8ect to the full ta# prescribed in Section $* of the )ational Internal (eenue sub8ect to the full ta# prescribed in Section $* of the )ational Internal (eenue Code.
Code.
n April %, $%'&, the petitioners appealed the issue to the C2A 9Court of 2a# n April %, $%'&, the petitioners appealed the issue to the C2A 9Court of 2a# Appeals: and the C2A ruled that the proision of the said (epublic Act cannot be Appeals: and the C2A ruled that the proision of the said (epublic Act cannot be e#tended to the operators of
e#tended to the operators of the sawmill. In return, the C2A credited $;,&'.; /5/the sawmill. In return, the C2A credited $;,&'.; /5/ to
to ththe e cocompmpanany y ononly ly bebecacaususe e ththe e ririghght t of of ththe e cocompmpanany<y<s s clclaiaim m of of a a rrefefunundd particularly those paid in 7an. $, $%' to April %, $%'+ had already prescribed.
particularly those paid in 7an. $, $%' to April %, $%'+ had already prescribed. CI( assigns the following errors=
CI( assigns the following errors= $.
$. 2he C22he C2A errA erred in not holded in not holding (ing (A $*+& ino!A $*+& ino!ed by the Insued by the Insular Lumberlar Lumber Company as legal basis for ta# refund is null and oid for being
Company as legal basis for ta# refund is null and oid for being unconstitutional
unconstitutional .
. 2he C22he C2A errA erred in not holded in not holding that the ping that the partial e#artial e#emption of minemption of miners and forers and forestest concessionaries under (A $*+& is limited only to & years from 7une $*,$%&' concessionaries under (A $*+& is limited only to & years from 7une $*,$%&' +.
+. 2he C22he C2A errA erred in not holded in not holding that the Iing that the Insular Lumbnsular Lumber Company<s cer Company<s claim for thelaim for the used oil and fuels in 6uestion, has already e#pired and no longer in force
used oil and fuels in 6uestion, has already e#pired and no longer in force *.
*. 2he C22he C2A errA erred in holding ed in holding that the companthat the company is entitled y is entitled to the ta# rto the ta# refund ofefund of $;,&';.; /5/
$;,&';.; /5/ 2he Company, as
2he Company, as appellant asappellant assigned the fosigned the following erllowing errors=rors= $.
$. 2he C22he C2A errA erred in ruled in ruling that ing that the company the company is not enis not entitled of titled of the speci"c the speci"c ta#ta# refund in the operation of
refund in the operation of its sawmill.its sawmill. .
. 2he C22he C2A errA erred in holding ed in holding that the claim that the claim for refufor refund on ta# has nd on ta# has alreadyalready prescribed on the periods from 7an $, $%'+ to April %, $%'+.
Ancheta, Eros Freuy B. Statutory Construction
+. 2he C2A erred in CI( to refund to the petitioner only $;,&';.; instead of $%,%$.+0 as claimed by the /etitioner.
ISS>E=
?hether or not to grant the /artial 2a# (efund to ILC
5EL-.
@es, but only in the amount as found by the C2A. 2he Supreme Court ruled that there is no merit in the contention of the CI(. (A $*+& deals with only one sub8ect and proclaims 8ust one policy, namely, the necessity for increasing the 5ighway Special Fund through the imposition of an increased speci"c ta# on manufactured oils. 2he proiso in Sec & of the law is in e4ect a partial e#emption from the imposed increased ta#. Said proiso, which has reference to speci"c ta# on oil and fuel, is not a deiation from the general sub8ect of the law.
2he primary purpose of the afore6uoted constitutional proision is to prohibit duplicity in legislation the title of which might completely fail to apprise the legislators or the public of the nature, scope and conse6uences of the law or its operation. But that is not so for in the passage of (A $*+& since, as the records of its proceedings bear out, a full debate on precisely the issue of whether its title reects its complete sub8ect was held by Congress which passed it.
Ancheta, Eros Freuy B. Statutory Construction
Issue#s"
?hether or not the Insular Lumber Co. is entitled of the full ta# refund pursuant to (A $*+
?hether or not that the proision of (A $*+& is constitutional
Assuming that (A $*+& is unconstitutional, what ta# refund shall be granted to Insular Lumber Co.