Phil Export v.

Pearl City | 608 SCRA 280

FACTS: PEZA is an administrative agency. Pearl City Manufacturing Corporation (PCMC) is a PEZAregistered Ecozone Export Enterprise. PCMC was informed of a physical inventory to be conducted by the
PEZA officers. PEZA officers discovered that PCMC had an unaccounted importation of 8,259,645 kilograms
of used clothing.
PCMC was instructed to submit its explanation regarding the unaccounted shortage. After submitting the
required explanation, PCMC was subjected to a special audit conducted by PEZA to determine the amount of
wastage generated by the company. On the basis of the results of the inventory and the special audit conducted,
the PEZA Board passed a resolution canceling the PEZA Registration of PCMC as an Ecozone Export
Enterprise.
An administrative appeal was filed by PCMC to the Office of the President (OP) from the resolution canceling
its registration. The OP affirmed the resolution and denied the Motion for Reconsideration filed by PCMC
afterwards. PCMC then filed a petition for review with the Court of Appeals. The CA reversed the decision of
the OP and declared the PEZA Board Resolution cancelling the registration of PCMC as null and void.
ISSUE: Whether or not PCMC was afforded due process
RULING: Yes. PCMC was afforded due process. In administrative proceedings, a fair and reasonable
opportunity to explain ones side suffices to meet the requirements of due process. The essence of procedural
due process is embodied in the basic requirement of notice and a real opportunity to be heard. "To be heard"
does not mean only verbal arguments in court; one may be heard also thru pleadings. Where opportunity to be
heard, either through oral arguments or pleadings, is accorded, there is no denial of procedural due process.