Professional Documents
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, et
al.
Date: 9 July 1966
Parties: Bacolod-Murcia Milling Co., Inc., Ma-ao Sugar Central Co., Inc., Talisay-Silay
Milling Co., petitioners, v The Republic of the Philippines, respondent
• CFI case:
o Appellants and another sugar central, Central Azucarera del Danao, had
unpaid balance:
Bacolod-Murcia: P216,070.50
Ma-ao: P235,800.20
Talisay-Silay: P208,193.74
Danao: P48,059.77
o 3 Sept 1951: Philsugin acquired the Insular Sugar Refinery through the
sugar tax imposed by RA632
o 1954-57: Philsugin lots a LOT of money, and at that time, 70% of Philsugin’s
time and effort had gone into the operation of Insular Sugar Refinery
o Appellants contend that the purchase of the Insular Sugar Refinery, using
money from the Philsugin fun, was not authorized by RA632 and refused to
contribute to it
o Lower court’s Decision: Apellants are liable for special assessments and
have to pay the balance
Issue: Did the CFI make the right call in ruling that the defendants are liable for the
special assessments under RA 632?
Ruling:
• Supreme Court finds for the appellee; CFI decision is AFFIRMED, with costs
o SC said that the assailed tax was levied to help rehabilitate and
stabilize the threatened sugar industry (history lesson: before, the
Philippines was a sugar cartel with the US as its top customer, but
the Act that enabled it to supply the US with sugar was expiring)