CASE No.

7
ROMEO GEROCHI vs. DEPARTMENT OF ENERGY REGULATORY
COMMISSION, NAPOCOR, et al.
Facts of the Case
On the basis of the decision rendered by the Electric
Regulatory Commission, authorizing the availment of NAPOCOR from
the Universal charge of its share for issionary Electrification,
res!ondent Panay Electric Com!any "nc# charged herein !etitioner
Romeo $eruchi and all other end%users &ith the universal charge, an
additional amount on their bills#
Petitioner no& 'uestions the constitutionality of such
additional charge# "t is his contention that( )a* universal charge is a
form of ta+, )b* there &as undue delegation of the !o&er to ta+, it being
a legislative function, )c* the im!osition of universal charge is
o!!ressive and confiscatory#
"ssues of the Case
-# .hether or not universal charge is by its nature a ta+ im!osition#
/# .hether or not there is undue delegation of legislative !o&er to ta+
on the !art of the ERC#
Ruling of the 0u!reme Court
1he !o&er to ta+ is an incident of sovereignty and is
unlimited in its range, ac2no&ledging in its very nature no limits, so that
security against its abuse is to be found only in the res!onsibility of the
legislature &hich im!oses the ta+ on the constituency that is to !ay it# "t
is based on the !rinci!le that ta+es are the lifeblood of the government,
and their !rom!t and certain availability is an im!erious need# 1hus,
the theory behind the e+ercise of the !o&er to ta+ emanates from
necessity, &ithout ta+es, government cannot fulfill its mandate of
!romoting the general &elfare and &ell%being of the !eo!le#
1o determine &hether universal charge is a ta+ or not, it is
necessary to ascertain the !ur!ose of such im!osition# "f generation of
revenue is the !rimary !ur!ose and regulation is merely incidental, the
im!osition is a ta+, but if regulation is the !rimary !ur!ose, the fact that
revenue is incidentally raised does not ma2e the im!osition a ta+#
"t can be gleaned that the assailed universal charge is NO1
a ta+, but an e+action in the e+ercise of the 0tate3s !olice !o&er#
On the other issue, it is settled that the delegation of legislative !o&er
to various s!ecialized administrative agencies is allo&ed as an
e+ce!tion to the !rinci!le that legislative !o&er cannot be delegated#
CASE NO. 10
EN BANC
MANILA INTERNATIONAL G.R. No. 155650
AIRPORT AUTHORITY,Petitioner,
- er!"!
COURT O# APPEALS, CITY O# PARA$A%UE, CITY MAYOR O#
PARA$A%UE, SANGGUNIANG PANGLUNGSO& NG PARA$A%UE,
CITY ASSESSOR O# PARA$A%UE, 'n( CITY TREASURER O#
PARA$A%UE, Re!)on(ent!.
*"+, -0, -006
.- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
.
& E C I S I ON
CARPIO, *./
T0e Ante1e(ent!
Petitioner M'ni+' Intern'tion'+ Air)ort A"t0orit, 2MIAA3 o)er'te! t0e
Nino, A4"ino Intern'tion'+ Air)ort 2NAIA3 Co5)+e. in P'r'6'4"e Cit,
"n(er E.e1"tie Or(er No. 708, ot0er9i!e :no9n '! ;MIAA C0'rter<.
MIAA '(5ini!ter! t0e +'n(, i5)roe5ent! 'n( e4"i)5ent 9it0in t0e
NAIA Co5)+e.. T0e MIAA C0'rter tr'n!=erre( to MIAA '))ro.i5'te+,
600 0e1t're! o= +'n(, in1+"(in> t0e r"n9',! 'n( ?"i+(in>! 2;Air)ort
L'n(! 'n( B"i+(in>!<3 t0en "n(er t0e B"re'" o= Air Tr'n!)ort'tion.
T0e MIAA C0'rter ="rt0er )roi(e! t0't no )ortion o= t0e +'n(
tr'n!=erre( to MIAA !0'++ ?e (i!)o!e( o= t0ro">0 !'+e or 'n, ot0er
5o(e "n+e!! !)e1i=i1'++, '))roe( ?, t0e Pre!i(ent o= t0e P0i+i))ine!.
On -1 M'r10 177@, t0e O==i1e o= t0e Goern5ent Cor)or'te Co"n!e+
2OGCC3 o)ine( t0't t0e Lo1'+ Goern5ent Co(e o= 1771 9it0(re9 t0e
e.e5)tion =ro5 re'+ e!t'te t'. >r'nte( to MIAA C0'rter. T0"!, MIAA
ne>oti'te( 9it0 re!)on(ent Cit, o= P'r'6'4"e to )', t0e re'+ e!t'te
t'. i5)o!e( ?, t0e Cit,. MIAA t0en )'i( !o5e o= t0e re'+ e!t'te t'.
'+re'(, ("e.
On -A *"ne -001, MIAA re1eie( #in'+ Noti1e! o= Re'+ E!t'te T'.
&e+in4"en1, =ro5 t0e Cit, o= P'r'6'4"e =or t0e t'.'?+e ,e'r! 177- to
-001.
On 1@ *"+, -001, t0e Cit, o= P'r'6'4"e, t0ro">0 it! Cit, Tre'!"rer,
i!!"e( noti1e! o= +e, 'n( 9'rr'nt! o= +e, on t0e Air)ort L'n(! 'n(
B"i+(in>!. T0e M',or o= t0e Cit, t0re'tene( to !e++ 't )"?+i1 '"1tion t0e
Air)ort L'n(! 'n( B"i+(in>! !0o"+( MIAA ='i+ to )', t0e re'+ e!t'te t'.
(e+in4"en1,.
On 1 O1to?er -001, MIAA =i+e( 9it0 t0e Co"rt o= A))e'+! 'n ori>in'+
)etition =or )ro0i?ition 'n( inB"n1tion, 9it0 )r',er =or )re+i5in'r,
inB"n1tion or te5)or'r, re!tr'inin> or(er to re!tr'in t0e Cit, o=
P'r'6'4"e =ro5 i5)o!in> re'+ e!t'te t'. on, +e,in> '>'in!t, 'n(
'"1tionin> =or )"?+i1 !'+e t0e Air)ort L'n(! 'n( B"i+(in>!.
On 5 O1to?er -001, t0e Co"rt o= A))e'+! (i!5i!!e( t0e )etition.
Hen1e, MIAA =i+e( on 5 &e1e5?er -00- t0e )re!ent )etition =or reie9
MIAA '(5it! t0't t0e MIAA C0'rter 0'! )+'1e( t0e tit+e to t0e Air)ort
L'n(! 'n( B"i+(in>! in t0e n'5e o= MIAA. Ho9eer, MIAA )oint! o"t
t0't it 1'nnot 1+'i5 o9ner!0i) oer t0e!e )ro)ertie! !in1e t0e re'+
o9ner o= t0e Air)ort L'n(! 'n( B"i+(in>! i! t0e Re)"?+i1 o= t0e
P0i+i))ine!. Sin1e t0e Air)ort L'n(! 'n( B"i+(in>! 're (eote( to
)"?+i1 "!e 'n( )"?+i1 !eri1e, t0e o9ner!0i) o= t0e!e )ro)ertie!
re5'in! 9it0 t0e St'te. T0e Air)ort L'n(! 'n( B"i+(in>! 're t0"!
in'+ien'?+e 'n( 're not !"?Be1t to re'+ e!t'te t'. ?, +o1'+ >oern5ent!.
To B"!ti=, t0e e.e5)tion, MIAA ino:e! t0e )rin1i)+e t0't t0e
>oern5ent 1'nnot t'. it!e+=. MIAA )oint! o"t t0't t0e re'!on =or t'.
e.e5)tion o= )"?+i1 )ro)ert, i! t0't it! t'.'tion 9o"+( not in"re to 'n,
)"?+i1 '('nt'>e, !in1e in !"10 ' 1'!e t0e t'. (e?tor i! '+!o t0e t'.
1re(itor.
T0e I!!"e
T0i! )etition r'i!e! t0e t0re!0o+( i!!"e o= 90et0er t0e Air)ort L'n(!
'n( B"i+(in>! o= MIAA 're e.e5)t =ro5 re'+ e!t'te t'. "n(er e.i!tin>
+'9!. I= !o e.e5)t, t0en t0e re'+ e!t'te t'. '!!e!!5ent! i!!"e( ?, t0e
Cit, o= P'r'6'4"e, 'n( '++ )ro1ee(in>! t':en )"r!"'nt to !"10
'!!e!!5ent!, 're oi(. In !"10 eent, t0e ot0er i!!"e! r'i!e( in t0i!
)etition ?e1o5e 5oot.
T0e Co"rtC! R"+in>
De r"+e t0't MIAAC! Air)ort L'n(! 'n( B"i+(in>! 're e.e5)t =ro5 re'+
e!t'te t'. i5)o!e( ?, +o1'+ >oern5ent!.
Con1+"!ion
MIAA i! ' >oern5ent in!tr"5ent'+it, 'n( not ' >oern5ent-o9ne( or
1ontro++e( 1or)or'tion. Un(er Se1tion 1882o3 o= t0e Lo1'+ Goern5ent
Co(e, MIAA '! ' >oern5ent in!tr"5ent'+it, i! not ' t'.'?+e )er!on
?e1'"!e it i! not !"?Be1t to ;t'.e!, =ee! or 10'r>e! o= 'n, :in(< ?, +o1'+
>oern5ent!. T0e on+, e.1e)tion i! 90en MIAA +e'!e! it! re'+ )ro)ert,
to ' ;t'.'?+e )er!on< '! )roi(e( in Se1tion -8E2'3 o= t0e Lo1'+
Goern5ent Co(e, in 90i10 1'!e t0e !)e1i=i1 re'+ )ro)ert, +e'!e(
?e1o5e! !"?Be1t to re'+ e!t'te t'.. T0"!, on+, )ortion! o= t0e Air)ort
L'n(! 'n( B"i+(in>! +e'!e( to t'.'?+e )er!on! +i:e )ri'te )'rtie! 're
!"?Be1t to re'+ e!t'te t'. ?, t0e Cit, o= P'r'6'4"e.
Un(er Arti1+e E-0 o= t0e Cii+ Co(e, t0e Air)ort L'n(! 'n( B"i+(in>! o=
MIAA, ?ein> (eote( to )"?+i1 "!e, 're )ro)ertie! o= )"?+i1 (o5inion
'n( t0"! o9ne( ?, t0e St'te or t0e Re)"?+i1 o= t0e P0i+i))ine!, t0ere i!
no (o"?t 90't!oeer t0't t0e Air)ort L'n(! 'n( B"i+(in>! 're
e.)re!!+, e.e5)t =ro5 re'+ e!t'te t'. "n(er Se1tion -8E2'3 o= t0e
Lo1'+ Goern5ent Co(e. T0i! Co"rt 0'! '+!o re)e'te(+, r"+e( t0't
)ro)ertie! o= )"?+i1 (o5inion 're not !"?Be1t to e.e1"tion or
=ore1+o!"re !'+e.
DHERE#ORE, 9e GRANT t0e )etition. De SET ASI&E t0e '!!'i+e(
Re!o+"tion! o= t0e Co"rt o= A))e'+!. De &ECLARE t0e Air)ort L'n(!
'n( B"i+(in>! o= t0e M'ni+' Intern'tion'+ Air)ort A"t0orit, EFEMPT
=ro5 t0e re'+ e!t'te t'. i5)o!e( ?, t0e Cit, o= P'r'6'4"e. De (e1+'re
GOI& '++ t0e re'+ e!t'te t'. '!!e!!5ent!, in1+"(in> t0e =in'+ noti1e! o=
re'+ e!t'te t'. (e+in4"en1ie!, i!!"e( ?, t0e Cit, o= P'r'6'4"e on t0e
Air)ort L'n(! 'n( B"i+(in>! o= t0e M'ni+' Intern'tion'+ Air)ort
A"t0orit,, e.1e)t =or t0e )ortion! t0't t0e M'ni+' Intern'tion'+ Air)ort
A"t0orit, 0'! +e'!e( to )ri'te )'rtie!. De '+!o (e1+'re GOI& t0e
'!!'i+e( '"1tion !'+e, 'n( '++ it! e==e1t!, o= t0e Air)ort L'n(! 'n(
B"i+(in>! o= t0e M'ni+' Intern'tion'+ Air)ort A"t0orit,.
No 1o!t!.
SO OR&ERE&.