CITY OF MANILA, ET AL. vs. COCA-COLA BOTTLERS PHIL., INC.
[G.R. No. 181845. August 4, 2009.]
THE CITY OF MANILA, LIBERTY M. TOLEDO, in her capacity as THE TREASURER OF MANILA and JOSEPH SANTIAGO, in his capacity as the CHIEF OF THE LICENSE DIVISION OF CITY OF MANILA, petitioners, vs. COCA-COLA BOTTLERS PHILIPPINES, INC., respondent. DECISION
CHICO-NAZARIO, J p:
This case is a Petition for Review on Certiorari under Rule 45 of the Revised Rules of Civil Procedure seeking to review and reverse the Decision 1 dated 18 January 2008 and Resolution 2 dated 18 February 2008 of the Court of Tax Appeals en banc (CTA en banc) in C.T.A. EB No. 307. In its assailed Decision, the CTA en banc dismissed the Petition for Review of herein petitioners City of Manila, Liberty M. Toledo (Toledo), and Joseph Santiago (Santiago); and affirmed the Resolutions dated 24 May 2007, 3 8 June 2007, 4 and 26 July 2007, 5 of the CTA First Division in C.T.A. AC No. 31, which, in turn, dismissed the Petition for Review of petitioners in said case for being filed out of time. In its questioned Resolution, the CTA en banc denied the Motion for Reconsideration of petitioners. HDIaST Petitioner City of Manila is a public corporation empowered to collect and assess business taxes, revenue fees, and permit fees, through its officers, petitioners Toledo and Santiago, in their capacities as City Treasurer and Chief of the Licensing Division, respectively. On the other hand, respondent Coca-Cola Bottlers Philippines, Inc. is a corporation engaged in the business of manufacturing and selling beverages, and which maintains a sales office in the City of Manila. The case stemmed from the following facts:
Prior to 25 February 2000, respondent had been paying the City of Manila local business tax only under Section 14 of Tax Ordinance No. 7794, 6 being expressly exempted from the business tax under Section 21 of the same tax ordinance. Pertinent provisions of Tax Ordinance No. 7794 provide: Section 14.Tax on Manufacturers, Assemblers and Other Processors. — There is hereby imposed a graduated tax on manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers, and compounders of liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature, in accordance with any of the following schedule: xxx xxx xxx
over P6,500,000.00 up toP36,000.00 plus 50% of 1%
P25,000,000.00in excess of P6,500,000.00
xxx xxx xxx
Section 21.Tax on Businesses Subject to the Excise, Value-Added or Percentage Taxes under the NIRC. — On any of the following businesses and articles of commerce subject to excise, value-added or percentage taxes under the National Internal Revenue Code hereinafter referred to as NIRC, as amended, a tax of FIFTY PERCENT (50%) of ONE PERCENT (1%) per annum on the gross sales or receipts of the preceding calendar year is hereby imposed: (A)On persons who sell goods and services in the course of trade or business; and those who import goods whether for business or otherwise; as provided for in Sections 100 to 103 of the NIRC as administered and determined by the Bureau of Internal Revenue pursuant to the pertinent provisions of the said Code. aDHCcE xxx xxx xxx
(D)Excisable goods subject to VAT
xxx xxx xxx
(8)Coal and coke
(9)Fermented liquor, brewers' wholesale price, excluding the ad valorem tax xxx xxx xxx
PROVIDED, that all registered businesses in the City of Manila that are already paying the aforementioned tax shall be exempted from payment thereof. Petitioner City of Manila subsequently approved on 25 February 2000, Tax Ordinance No. 7988, 7 amending certain sections of Tax Ordinance No. 7794,...