CTA Case No. 2983 (Decision)

REPUBL IC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY MANILA PENINSULA HOTEL, INC. F'et.i t.ioner ~ C.T.A . CASE NO. 2983 THE COMMISSIONER OF INTERNAL REVENUE, He s;ponden t.. --- - - - ..- >! DEC I I DN This is a c 1. aim for the re �fund or credit of the amount of P1,967~751.90 representing alleged erroneous pay ment of c ~ en::~r ' s ta>: imposed under� Section 191 - A of the Tax Code as a men d e d by Republic Act No. 6110~ for the sale of food~ beverage and tobacco by proprietors or o perators of restaurants, refre s hment parlors and ot h er places~ including clubs and c aterers . As 11-Jas held by this Court~ in the case of Manila Golf a nd Country Club~ I n c. vs . Comm issioner of Internal Revenue~ CTA Case No. 2630~ promul gated o n March 30, 19 77 ~ Section 191 - A o f t h e Tax Code is inva l id~ i t h a v ing been vetoed by th e President o n August 4~ 1969 a n d t here f ore t h e taxes p ai d b y p etitioner o n fo o d, b e v erages~ an d t ob acco wer e t herefore errone o usly paid.

DECISION CTA CASE NO. 2983 - 2- On Oc t:obe1��� .11 ~ t 97 8 ~ p P t . i ticmer� . thr� nugh 1 ts aud.i.t o r �c::; , �f.i.led ~~11-t:. h r � e~; pnnd r~nt:. F.l c laim for r.. e �fund r.:: n :.> d .i. t . of th e r.~ bo ve men t.i. oned alleged e r r o n e ou s p ~y m e nt of p ercent F.I ge tr.~xes amounting to f'i!lCll..ln t. 0 f n . \!"',.i.ni?SS Aro...1n t of Tc:~>: �r F.l>: F'a .i.d Pefundable/ Cr-editc:~ble n:: a] t:r.J I ~!!�- -� -l>ec: Fo"'lnt:>f"~r � 1'?7 6 P .1. ::'1"..'-�. 7Z? . 1:/ l p .116,1.:-1.)6.80 b] ,Jr--\nt.la r�y ��-t-l."' l'��cfl .1.9 77 ~':46~024.19 c ] t�kw ct .. ...,J 1 trH~ 197 7 596~674 . :3t d] ,JuJ y -�f::i!? ph::mt::>er- .1.977 5'70 � 272 . B6 .........~.l, ~6?.!..:?'4 e J Oc: t.ol~?r�� ��-lk -:-c e mbF!I'.. l '777 �f] .J rinu;" r��y - t�1a r r h 19 78 ' H7o.r:. . ... ..61. . 4. �- .... Tnt-.."'1 1 F2 1 0 :3 9/:,2. 84 ,.., ..,...5 ......,.., ,..,.., .,.,,........,,....,,,.,,, In a letter d ate d Oc: toh e r 18~ 1978, rec::;pondent d e ni e d p e t:..i.ti.on e l' ' 'c::; c l .'�\i.m �for.. 1'� e �f11nd or-� t:. he Cl' �edi.t, \o'lh.i.c:h \o'JP. qunt.e ;~ c::; �f n ll.CJ \o'IS : H FP IJDL. I l<f' tiD P l L. IF I NA8 f:: f' om�umm�t ttn r �mtnNm_()F�I K()WANitmN NG nENrns INTERNAS f..unq s od nq Oup:;:cn�l Octnber 18, .1978 S y cip, Gorre s , V e lc:~yo & Co. 6 7 60 Ayala ()venue Ma~c:~ti~ Metro Manila f.)tt.n.: t1 r:_. .... ~~ -~�-���� .G..~ ....G. :i, .~.9..f.l.. Tr;~_t:___D i_y _.i ?..t<::!.rJ. 2 ~o

DECISION CTA CASE NO. 2983 - 3- C3en t.l e rn en : IJI.i.th n ;:?"fpr���enc:e to the c:l~.i.m �filed by you on Oc tober 11~ 19 7 8 on behalf of your c 11 en t ~ 1'1AN I LA PEN I NSIJL() HCll El._ ~ INC. for- refund o �f P .1. ~ 967.75.1. '?0 as a 11 eged rr �r�� nnr.ous 1 y c:oll ec t:.ed <=�""~ ter� er.. � s tal! �for th e per-�.i.od ft�.. om Cktobpr�� ~ 1 976 to 1'1ar�� ch~ 19 78 ~ inc 1u s i. ve ~ I 1\."':"lv e t.llP- h onor� t .o Jn for� m you til~ t. the dec .i.s.ion of the Cour- t r n T '"' >( f't p p r:-~ i''\l s i. n the c '"' r,::. e o �f " 1'1"" n i l a IJol f ~( Cnuntr�y r::lub vs. Comrni.ssioner�� o �f l n t er�� n .~d FI!? VE'nl .tr. ~ " C. T. 1\. C."tsf.? Nn. 2630 pt��nmt..dqated nr1 1'1 ."1 r-ch :3 0~ .1. 97"7~ t.-Jh .ich i s the lPgal basis of your claim~ i s not. ye t �f .i .n;"\1 and e>(ecutr.:H- y .i .n<"1 s much <"15 <"'n appe;;,l lo'JF-'s �fJlPd by t .h:l.s Off.i.r.::P lo'J .ith tl1f.? Supr-�f.?mf.? Cot.lr- t. �f or- ttle �fJnal r-�esolut..ion o �f the :l.ssues invol v ed Jn G.R. No. L~7~2.1. 1-icror-� dingly~ you r�� r.::lai m fnr-� r�� efund ir,; hen? by dr~nied and you ar-e ."':"ldv.i.sed tn IH. (]r:> r.:: lien t to con t i.nuF.? pay .ing the c:at: er �f.?r�� 's t .�""'>( unt:i. l a �f .inal decision on the ,.,aid CE,se o �f f'1,;mJl,"'\ Gol �f /!( CcH..tnt.r-y Club vs . Comm.ir.:"-�'. .i.nner�� r.:d IntP.r�na l ne v er"HIP~ G . R. No. 1..47~21 h as been r�� pndf0r�� e rl. Very t r u l y yours~ ( srm . ) F<Er~t-tr)r:mn o . crmr:- In A ss t . Commis s ioner of Internal nev entle TAN C6l10 - A10l~ - A -7 Conc;.idr:>r.. .i.ng thAt: due to the constant postponements e~t: the .inst:.~nc:e o �f elt:.her or both par� t.ies to e~w."t.i.t. the e~djud .ic:i"t..ion by the Supreme Cour � t o �f ""case .i.nvolv.i.ng a s.i.mllar issue on t .he of of In ter��-r1a 1 Revenue 'I

DECISION CTA CnSE NO. 2983 ,- - In c . P.t.. al . ~ Fl.F<. No. T l1r=.� !3u pl�-emp Cou r � t. ha '/ I? s .i. n c e d I?C: .i d ed the c: a se Inc:.~ G.F~. No. 1 99 0~ t.ll P I' F' �fnl�� p , .i.n <:s.~\ id C T() C;:~r::;p tlu. 26:) 0. The Supreme C o ur�� t I1 P lcl t llu <..:; : Th e p P t .i. t . .i. on r'l!:J~�I h r> f ewe l.J s pr�� eserd:. -.; <Hl .i.der1L.i.cal qur st:. .i. o n: 111 h et:.her� t .hl? p� �� e~=; idPrlt.i.al v r~tn ���p fer ����� p d t n the ent.lt,.� e ~; r? c:t..i.nn Dl'.. mr:> t��� e l y to the Jmpus.i.t..i.on c1f :2 0~~ t .'" :: nn q r�� n s s r-pc r~ .i p t �;:; n �f n per�a to,,.. s or� p1��� npr� .i.Ptnt��s of ���� p�::; t.a ur-.::~ n t.s. r-e'f'n:;�shment.s P �"~ l'� lnt,.�s . b ,, ,,.-s a nd nt:.llr!>r�� e.~\t.: :l.nq pl.':IC:I?S ~�lll:i. c ll a r�� r:? m,,, :i.rlt. ."l .i .rl e d 1-'l.i. l:ll .i .r�1 the pt'"�l?m.i.sl?s or�� c nmpnun d cd ' a llo t e l ~ rnnte 1 or� ,. �P E~ l.l1 o 1.I ~' P "'' � n e f P. r�� r-~ n r:: P. t: n t. he 1'1�"' n .i. l a llnt e l r.:.3<:'>1'-'~ , tllP.I'' C'fUI'' f:�~ . mJqllt:. h,;:\ V P bP P f'l "='-u �f �f.i.ci E? nt to d .i s pn sr' cd thJs-, pet-..i.t.i.on wpr�l? .i. t:. not �f nr�� the pn :,, .i. t. Jon o �f the CTn ttl,::l t '"' c: l�l.i. P f P: : r~c 1 .1t.i. vr-~ h r~""� nn po vJI?r� to v r~ t-. n p "' ,... t . n f .:-~ r 1 .:1. t .P. m .i n "-' h i. 1 l ; R .i. L t 1r~ r� 11 e ve t.orc:� s ."l rl r>nt..i.r-r-? S l? c: t:.Jnn nr- �''ppr�� o ve s .i.t:. b11t. not <'�I fi'.. �':IC t:..i.on t:.ll P. r�� pn �f. I� IP I'. r.:-~ .i.r1 p r� .:1 v '"' t. e ,.�c ~::. r'D n den t , 1'1 a r1 .i 1 a Flnl �f 8( CcHnd.-.r-y Cl1 .1b, In c:. i s non ��-� st:.ock c:nr �por �,c.,t..i.on. T1�� ue � .it rn.3.i.nt ."'i.ns a gnl �f r.:ou 1�� s p anrl opet��� ,"'t.P s �"~ clubhouse with a l cn.mge, h,"',... r.:H�ld d.i.n.i.nq r� oom~ but these �f,"'c:.i. l.i.t:.ie ~::; ar�e �fnt��� ti1P. e:-:clusive use n �f .i. t .s lll f? lllb F>f ' S c"'nd i\CCDITlpr:\n.i.ecl gut::~sts ~ and .it-. c: h."' t'"�qes nn c: n s t �- p l 1.1s--� e}: pen se ba s .i. s. A s s ue h, .i. t. c l "'' :i m<:; .i. t s h ou 1 d h ave been F!l:empt:. �ft���n m pa y ment. n �f pr�.i. v .i.leqe tal:Ps wer�f? .:1 t nn t . �f nr� t hi? l '"' s t: P�"~ t��� aq r�� .::, ph n f I,

DECISION CTA CASE NO . 2983 - 5- r.:;E'C: l .i. O II J'7 J -. �() n �f f;:. () . f'.ln . 61. .1 0, ntl\ p n ,.J.i.!;, p I::IIO V111 ;..,c:: t .h r-� "Clmrl.i. h1.1 8 '~'�'~> : l... ,;:1\,.J." Sec:t.i.on .1 9 .1. --� (-) I'" C' t l d !":: : '� n c~ c . 1 7 1 -f.) � c.:~ t:e1� f?r � . () CE-Il'. PI' ' P.l'" ' 8 l. ,"\: : J<::: ll F~ t � � pby Jmposed ar,,, �f n l l nvls' " ( .t) Un pr �op t�� .i.etor s CJI"' operators of re s t ~ ur a nt s ~ r �e �f I'" F' '"'> t 1m e r 1t p ,;:~ ,.- 1 u 1'- !'; '"' r 1d o t h e r. r--al:..i.nq pl .:-,ce"', ~ .i.r1c:lud.i. nq c:lubr,:;~ t"l nrl cater.. e r.. !3 ~ tt1r �pp per.. ce nt n f tt �1e.i. 1'" qr �n ss l'�ec:e .i.pLs. " ( :? ) Clll f:'I''D PI'' i f"'lD I'' S 01'" c::>p n r � o':ltni'"'S n f r - f"-~ r; t�.o"' l \I'" o"' r I t: 5 ~ b '"' I'" o;, , c t:l �f E-~ Fl ,,, n cl otiiF'l'" 1'>1::\ t..i.rlq plr.~c:e"'\~ .i. 11 c: lud.i nq c J 1.1 h s � ~-111 F' 1�� e d .i. s .... t i ll r:>d 8 r:d I' .i l '"~ ~ �f e l'" fllf'n tr:d ] J quor �r,; , 01'" ~� 1 i II P. c; 1:\l'" P. SP. f'"VP d ~ tfll' ' C:'P r'F'l'"CF' rlt n �f L ll P. i I'" q I'' CJSS I'" PCP :1. pt. ~:: f t�� nm ::�~.;~ l P n f f nod O l'" r �r_, �fr �!:"::; ll mPn t..s .-:1 rld se v r )rl p e r � CF�' nt 0 f t .h F-1 .i r � Cl I'' C\'5~:. I''PC P. .i pt.: S �f f'" UITl r,;,,~ lr> of d .ic,, t-i ll r~ d s pi.l �� jt:_c:;,~ �f cr.. m F~ nl ed J i qt\0 1'' ":; O l'- ttl .i .n es. �r ~�1 n ::; r? '!' c,; r> f c: c: 'm mer� c .i ,., l J r 1v n .i. c: r-~ r; c., I' - r .PC: f" -j p t ""- :,:: r� I'" .i '"' 1 ., y r II.\ Ill b fcc I"' F' rl .i r l dl.!p �l .i. C:i':lt".r !~; 11�'�1 11 he r' .':\ rc= P I'" �':I l F-~ ] V p I' . C"~ p tl I" P. d �'�I n d i S 5 \. l P d � 01 1P 'f n r � "' ''~ 1 !:" n �f 1�� c:~ �f I'" F-~ �;. hmPn t s '" r-> r. v ~~~ r1 � ,., n d ,o1 n n t- 11P I' � �f o I'" r:? ,;~ c h sa l e of rlt s ~i1J e d s p.i.ri . t s ~ �f r:' r.. m P IIlr'd liquor,; D l" ~�lir H-~r:; :::~P I'.. v P d ~ t:. l 1r:� o I'" .l q i. n '"' 1 !'; n �f t t 1e .i. r1 vn.ices or.. r �ecr�i pt s to be .i. "'''"l \.\r-~ cl to th e pu I'"C: h i'�l se r- or � c: 1.1r:; tnrn e l'". '' ( ~ :r, ) Un p1�.. opr...i e t:.n 1'" 5 r:JI'" operators of restaurants~ refreshment parlors~ bars~ C �":l �fe s .:1nd other � Pc"lt .i.nq pl."tC::I25 wh.lc:h are mai nt ained within the pI'.. e m .i c:::,er:; n ,.. c: orn pound o �f a hot F.~}.~ lnr:-'J:e 1... r-:e �: tt-1ou ~;l?� c o c 1:: p .i. t . � I'" C:l r.: e t:. r-'" c 1:: � j a .i.-... a 1 a i ~ c:.;:~b,;:lt'" F.>t. niqf �1t: or.. cl,;:~y c lub by 24J.. '�

DECISION CTA CASE NO. 2983 -- 6 - mP."' n s o �f '" co rlfl f"C �t� i ng door- p i:'S~-'",.:H)P t~tJenty p r-> 1,.. ce nt:. t ht'? i. 1'- q r-os!:; r �ec: P. .i. p t s. "t�Jhr=> l��� e t:.h�~ Pst��-a- b��-�l.i.. e.; h m. e n t... r..-; .. ... ?I'"I?. op_er- a. t~?f:i. o 1�� f!la_tnJ: .~J. n ~r.i . t?Y. c lub ~; cd i:'ny kin..tt or� n r.~ t u 1�� e ( i._l"or" P.!_:lp~c: t. i Yf?. o f t t) f.?_ d J e.;pnsJ t; Jnr.1.. q-( theJ r:�. f.l__et. ir1c;_qrr1e C'\ nd. vl_t ~f?.tl:ler: m - ~1o_ t tt_l P.Y C:f' ~: f?.r:. y r:. !?.)! C: lu e.;J Vt-! ~ t .o mr~ mb r:-r-. 5 01'_.�. ttl�.?~- guer;; t. s ) the. I~P.f?. p er_s qf_ t-hE'. est.abl.i <S tHrH::?nte.; s h aU pa,y t: !J P. corr::e?rnr.ld.i.nn ta >r at t.hP. r �ate �f i }! f?C,i i:\ bov P.. '' [ ttn c1 e r� sc: nr� .in g CJI II'.. S ] nrpub li c A c t No . 6 110 took e ff ect o n Se pt e mber 1 , 1 969. By th.i. s v irtue, p rt.it.inrlr?l". .:v=.s r:>!;-;c.;r. d the c: luh f.i. >re d ta ::es as oppr� at:nr��s o �f go lf linl ~s a nd 1��� r-:-~ r.:; t '" 1.1r.. '"' n t s � '"' n rJ a J !=. o p P r�� c: P. r 1 t �~ q F? t. a >1 ( caterer's tR x ) f or its s RlP of food s an d f P.I'' rTlE-~ rl t: r:!d l.i..qu o r� s/\.'l .i l lP5 �f or � the p er�� Jod c:over � Jnq !3r?ptemh er�� .1 96'7 t.o D ece rnb r.:-'r- 1970 tn t. :i. Tl tll f-? o:1fllClt.. of p :::;2 . 50 '1 .96. The c lub PI" D t:. r!"d :. e d c J "' .i. mJ nq t h r:> i'\ssess mr:> n t to be ~� Ji.l..f1 o ut b ."'~" .i.r,; h F'C:o011.l";e Sec:t:..i.on -1 2 I!Ji:IS VP l:. npc1 h y t:. I1 P P 1��es .i r:I P rl t t�1,"t r.. c or:, . T h r? ve to me S ~; o'il q E�~ I'"P.oCid : "nm f)CJ)f\lf)NO 1"1 C:"~ ni 1 a Auqust:. -1~ .1. 969 "G e nt:.l emr:> n rT f the lln t..I 5P. o �f H e pn?r,;e n t..;, t: J v es : "I h o"'VP the t1 o nor� to .i.r,-fot�- m yo u t.ha t I ha ve this d ay s i.gn e d H.B. No. .1. 79 :39, ~:� n t. :i. t.l e d : 'f'IN f'I CT fW1 E NDING CERTAIN PROVISIONS OF THE N~H I ON AI... I NTEr;: NI'IL.. HEVENUE CODE, AS AMENDED' 24._,

DECISION CTA CASE NO. 2983 - 7- '' f""1.1 r �.,,, l i'I Tl t t: n t .1�1p pr-o ..-� V i. r.:; i OTI S r~ �f SPC: I' i.nn 7 0 �-�� ( :') ) � (\l�� tJ c: J r.> '�) T. o f' -t� h p Ce~n sd: .i. tut:, ..... i.nn � hrW I F'VP I'" , I ll."'VP vr:>tne~1 .t h e_ fnllo11d.nq it e:~ ms Jn th.is b i l ) .: p p � IJ IJ � f:)F C � II 2 � ,. , ,�,\ 1 \ 1 \/1� I n r:;; F' 1�� t i n q �'1 llf�' ~�l f )r'C t� .i o n 1 7 1 �-.. () ~�lld.c h .i mpo :-;p e,, t ,l C: t l !: P Y r. 1�� ' e; t:. i;l ~ : D �f t. hI'" f."?f? p r? r.. c:P nl of t .h P. q r �nss I" P C P.ipts-. nf p 1" <' f' I'" i '" t n I' � ,., n 1' � o p !"' 1' � i:l t o r.. ~. nf r r";' t. �"-' 1.\ r ,,, n l .::: � r- e f 1"' 1? e; h mp n t p �'' 1'" 1 u r �f-~ ,;.If ' c1 1'1 t- I H" I'" e <.:\ t. J Tl q f' l ,,, c:: r. ""' : L h r r �?r. p "" r T P n t f:' f t:. h e q1'" n.,, s I'' I:O' Cr' .ipl' s fr- n m f-'� n lr? nf �fo n d o r- I"P.'fl - pe; hm P nt Fi nd <:::.1:-?v Pn p r? I' �c: Pf'l \:. Of l q r� CJ ~; e; I'' F�'C: F:?J p t S �f I'" Dill ttt e r.:;,"\ J e o'f' rl.i s t.illr:>d s pi1�� Jts, �f e I'- mF?n t: P r1 l i 11 u n I'.. s ('I I'" 1-'J .i. I II? 5 � on pr- n pl'.. i f'�? !:.D1''S 01' n p e r- '"' tnr �s o'f l''fc' ~'� t ,,, u r.. ."\ r 1t !'' � h,"\ r �s � c: ;., �f '?. !5 ,;~n d C'' t l l f? l'' E�? o"' t . inq pl FIC:P 0'� � .i.n c: lud.i.nq c: J u h o;. � ~�J I 1e I'" P d i s t .i. l 1 e d s p J I'" i t s � � fr�? l'' lllf~ llt. P d l .i . qUD1'"S � nr- \-'1:\. tlf.:> ~;. P:\1'" !?. S E'1'" V F�? d; ."\ rld tw r.> rt t:. y p e r �c: e n t n �f qrnss rr:>ce ipt:. s o n proprietor s n r npe r Fit ors of r e s tf'lurant s . I'"E�? �f 1�� r-'s t1m P r1 t P �"'~ ,... 1 nr �s � b e:\ I'" s � c: ,,, �f P s "' n d n t:. t 1P. r. e "' t:. .i. n q p l '"' c: P s:, n"~' :i. n t:. r:~ .i. n f'�' d ~�J i. t h.i.n the pr.. r:> nd. se s or- c: o rn p n tl n cl o �f n h n t: f? l � rn u t t? l � I'" I? e:; t:. t 1n u r,,~ e � c: n c: k p .i. t: � r �'"' r:: e t I'- '"' c: t . � j,,, ,;, ..... ,"\ l .:"' .i.� c,;,, h .~\r" P. t:.� rt.i.qttt. Ol'- d ,"\y r.: J u h � n I'" I��I I�l .i. c h '"' ,... P '"' c c: e s s .i. h l P. t: n f'' i'�l t I'" u n !::; n f e:; ''�' i r1 e s t ..., b l .i. s h -�- m P rtt�. ~; h y fll1"�'t\ rl '-' � o f ,,,, c nrtnec: t.Jnq clunl'.. Dl'" p ass;:,\q E'. ' TtlP bUI'" dPn C) �f tE�I : : ,"\ l .iun <; IIi f ted \IJ i 11 bE? c: on ~; urn .i. n q t:.n the pub! Jr.::. ' Tlt e de v !:-> lnprnent. o �f hnt:.Pl s � 24u '�

DECISION CTA CASE NO. 2983 - A- h�~ rnn� t:. 0\.ll' ' i "" t-. .l. ' Hh.l !"\ t.r �y ~ m:" y b~ n '"r.: l .r-- A i.n P. d c::o n m.i drr�-�� i nn U1 ~ t. a. b i.q p n r � t:. ' o n nf h o t.r > l r�~ .~, ,, r1 .i r 1q s r-: om es f t )r.Jti s;~ l e.. ' ' " "' ~~ �rIde:; hill. I-I.B. tin. (.)c:t .1 7 r:r:)�:r ~ " '" !:; h PCCl lllP P e publ.i.c l'l n . 6.1.1 0 . II f<: f'�' ~0 p f' C: t: �f tJ 1 1 y ' II <nu n) FETn> I N('lr.JD F. 1'1f~ncoB [' unci P. l" SC 0 1'.. .i rlq 0 \.l r� s ] The pl�� o t ~;>st.~"' t:..i. o rl o �f t l �1p cluh wa.s d c n.i r.-� d b y the p P t .i.t.i. u n e r�� 111ho mai.nt~.i.n<s ttJ ,"' t !3 r~ c t..i.o n 11 ~;~ Ill <'' ~:; nnt:. e nt .i . 1�� eJ.y v etoed hut. m r-~ r� r~ ly t he l<'l cH� rl e:. 11 1lotP.ls~ motels~ r-r-?::; t:hnu sP~5 11 nn t:.h P qn:HHH:I tll ;:'\t .it might l'� e::;; t Ta J n thr? d e v e 1 o pm e n t of hote 1 s ~�1h.i c h .i. ::;; r:~ �;; "" e n t:. .i. ,,~ l t. n t:. I 1P. t. m ..ll'.. .i. "''m i. n dust r-�y � Tl1:i. s i s .i.r1 �f ,"\c t l<'l <l s t:.l1e po��. .i.t:..i.on o �f the I tn u ::; e \II '" y s; ~~,m d t�1P.."' rl s C o mrn i. t tee 111 h .i. c h ~r po~t:. e d~ t o wit: 11 ~�JI 1P n C r:�n q r � p s r.; dr> c: .i.d e d t .n ::' p .1 .i. t Dec: t .inn l r:y l .into t:.l<'ID ClllF.> d r> ~ l.i.ng ....li t.h c or1 tr� nc:: t o r� s ~ a nd the nthr>1' � d r >'" l i n q 111 i t: h t:.llCJ SQ ~�1l1o ser� v e f n nd i':lnd d1�� Jnk r;:; ~ th e .i r 1 tent .i.on l�lo'�'s to c l ~f.:; <; .i. f y a nd to JmrH� o v e. l!llt.i.l r? t'.lt P. Cn rlqi'� P.o:;!O:, P>:p ."'nded the co v P ,. � ;:~ q ,., n f h o t:.l1 1 '7 1 ""n cl .1. 9 l .. -A ~ .it. Fl l<:;u pt�� o v id P d �fnt'' c: er� t .3irl P ~ :cmp t:..i.on ~'l . The v Ptn mess."\ge seem s to object certain r.~dd.it:..i.nn s t:.n .1r.Y.t�- A. l!lhat ,:-~dd.it.i.or1s ar-�e nbject .i .nnables can be q 1 e r.1ned f n ::Hn the r-easons given: a q e ne~~l reason th~t th.i.~:; snt�� t cd t.'1:�: .i . s pi:':\ssed on t.n thP. c on s umi r1q pub 1 ic ~ and a pa~t:.icula~ ~ea s on that hotel dP.velnpm e nt. s ~ s o essential to t:.he t:our- .i.st inc:lust:r.. y ~ may be .,

DECISION ClA CASE NO . 2983 -- 9 -- l' r.;o:: tr��,~i.n~:> d. Til e~'~? rr.""~o r1 s h ."ve b r~P- n t,:\l :: r:> n t:. nc1r:>t h er in thr. .irlt:.r:~ r � p r � ro-~t;, t � i.nrls of tl1r-> ve to m P,.,!"- <C~qr. i"\t rd thP d P. l et.i.nns of c:::.t l r.:: h Pr r tpr��pr'� :l.se s ""s ar� e r.::nn n r.~r:: t. ed \' l i . t . l r thf'.' t:.nur�� Jst .i ndu st.r �y h,"::\r,;; tllf'r �e f c:H�� e b�?e n l'"" r?CClfll !ll f'.'flclF.:' c:l. ''To .irlt. P r- pr �et. th e ve to lll PS ~; F.H,l P cd:. II P r-� ~�1 i r.= P- ~�IOU 1 d 1'" 1?5 1.1 1 t .in tir e e>:P. mpt:.:l. on rT f l?! nt: .i . t:.i. e!S '"" l ,... e a d y c::; 1.1 b j f'~ c t . n �f t .F.\ :: � T h .i. s ~tJ nu 1 d be .~ h s u r�� cf � Wh e r� e t: h e Cn n q r�"F~ !"; s ~�J '" n 1-: l? d to P. >: r. rnp t. ~ 1 t ~-1 ;,,r.; so pn:1v .i.ded in the b i l l . ~�Jil.i.le !:.h e Pr� -r.:>r.; _idF~ nt rn F.\y ve to any .i. t:. F! rn o r��� .i t. r.mc:; .i r1 21 r-- p ve n 1.1 e bill~ thP r::r:lll~d: .i. t. t.d:. i.on d or.:�r,; n o t . q .i . \t P h .i . m t ll P. pnt.�ler� t .o r- e p Pa l r.:\ n e':.i.~~ t.inq t F.1>:. (?nd Ind orse me nt r:r. d ;-d �. r. ct Decf.:~ rnl:>t?r .. .1.9 69 � C fl ,"":l .inn.;ur on \.<JF.\ys E~ nd t-1eF.'In5� S.i,d�.h CnrH:Jl'" I?SS of t h e nepubl.i.c n r t h ~: r�h .i. 1 . ) < E >:tr s � t t1 � p � 8~'.\� E<. I . r: : . n~c.)." (pp. 20 -..�2 .1.. F~:n ll n) It ~�1 '"' s by r �P '"sen 1 of t. hi. s .intf? rpr� P. t.C:\U.o n o f 1-:lr!-:c Curnrn.ittel? thr.1t. R.A. No. 61 1.':) Vlc':IS pub] i. s lrr-d .i .n Vol1.1n1e 66� No. t n . p. 45 ~'!; 1 c,f t.IIP Offi.c:.i..::~l CJF-'1::-:et:t:F? (t�1,:~y 4 � .t 970) in ~:;u c: h .~, lr'J c"::l y th ,::~ t: Sf!�c:t.i.on 19.1. ���� {' Vl c"'.IS includ e d in t h e te :-:t:. !"",ave �fnr.. thl? ltJnr�� d~;; ''h ntPl5� motl?l s . r�� ,-,s t:.houses.'' ()~; ."' l r �ead �y� mr:? nt..ion e d ~ t iH?. Co ur�-- t:. Df l a :: ()p p e ,:d !':, ~ upon p P. t:. i. t .i. o n b y th e c lub~ s u s tain e d thP. lat t e r ' s pos.i.t.i.on r�� e21son .ing t fl r..l t the> veto m F.cssa q r~ 111a s c 1 f.:>i=H�� and unqua l.i. �f J e d, F.\5 .in f ac t it. ~>'las cord i.r-med t:.hr�ee ye.::~rs lF.'It l?r.. . '"' �f t .er much controversy~ by t.h!? Offi.r.::e of the F'r� es.i. cl e n t:. � thu s : "Mr.-� . (.)ntl? l'"" D t-1. Sison, ,Jr�� . S ."'.l n t�1 .~u�.. t.: in Bu.i. J cl.i.nq ~ l 96 tl ~ n. M a b.i.n.i.~ P.O. Bnx 22 88 1'1 ,,, n J 1 ,,, ~ F' ,., i 1 .i. p pi rII?! s 24u '�

DECISION CTA CASE NO. 2983 - lO - ''D r.r.:\ r- S .i. t� : "t�J.i.Ul r �p f pr�p n ce t.o y our� l e tter�� d,'::\t e r.:l .Jul y Jlj~ .17 7:2 ~ 111 e l,J.i. s h t:. n .i.n �fnnn y nu t:h ;;\ t Section lj 2 [~�1ld.c:h c on t<"'.i n 5 Sr.>c. 1.9.1. ��-� AJ of HcH .t s e b i l l N o � .1.7f:l :Y? ~ now F< . (). 6.1. .1.0 111<�'15 o ne of th e Ei re t.i. o n 5 �;r:~ t <:~r.> d by the Fr�� r.r.;; .i.drnt ir1 l1:i.s v r t:.o mr;~ !'-;5 .'::\qe d<"'t-. e d (~UI.:JU s t:. lj~ .1. ? 6 9 . v etoJr1q c::r.r � t ,"' .i.n ,.,.,ec t: .inn !':'\ o �f the BF.:I.i.d r�evr.nu e b.i.l J Vr.r y Truly Y ours, " ( GEm. ) In t NF U T . (~ Cl U I nn E ~ ~m. f"r �� f? r.; .i. d P fl t:. J o::l 1. f::j 1:. ,~., �f �f (~ '=�'=� .i 5 t. o"' n t" (p . !j<y~ Rqllo) (.~ 5 me n t ..i. c>n c d e F.l r � J. .i.e,... ~ (,oJf'? h av e a 1 r�1;� "" d y I" u le:~ d t:. t 1;,, t t: 1�1e p .... e s .i. cl e n t: .i. "" 1 v !? t:. o I' r. f r. r� I'� '" d mr. r� <~ l y t n t l1 e .i. r 1c 1 us .i. n n n �f hnt P l r,:-, ~ mnt r:> l o;, a nd r� r>s t.l1 n u s~;;>5 i.n the 2 0/.. r:: ;.;~ t. P. r �e r � ' 5 t. a :: hr � ,'::\r.:: l ~ r:� t but not to the ~�1 h o J r,.> r-�, pc t:..i. Ofl � flu t: ~ o"" r::-, tn r:> n t:. .i. nil r~ d F.~o"' Y" l .i. F.? f .. �~ l ~;o~ t. ll P. CH'I op :in e d tl lo01 t tiH? F'r �F:? s Jdent. c nu J d not ve t o ~\ln r � d :,; c>r � ptH.. F.I "'H?S .i.n a bJ 11 hut o r1l y <Hl e nt..i.t��p Jt r> m. Ob v .i.ou s ly~ lllh o"'t: tl1 e CTA me."' n t b y '' .i. t:. e rn '' W o';\ 5 an en t .i.t�. e r.:;c~c:: t.J n n . (,oJ e cl n n c.>t. o"' CII'"P. f?. But e v en �7�1 "'�~�. um.i.rlq .i.t t:.u h e r::-, n~ :l.t ~<'IC>uld .'::\l 5 o be t:.n p <d : .i.t:.i. o rH::> I'.. ' c:; �f ,71VU I' . Tll P .in P. �f f ec: tual ve to by til E~ Fr" E'"> .i.d r-:~ nt t ' !c' nr:i r-~ �� � r:> d t:.t1e ~1l1ole :,:: F'C t ..i. n n .l (1 .1. .. �('I ,o,r; n ot:. 11 ,":1'/ .i r11.::J bF:?r-' n v e tor:>d <~ t:. "' 1.1 i':\ nd :i. t ~ !:.l1 e r !::~"fnt�� p ~ hr~ c:F.Ime 1 a 111 8 S F.l n un c nn s t.i.t.uti.nn ." l ve to ha<=~ no F:? �f �fect. 1111 1a t:.~;o ev r::>t'.. . ( f:il?e Eto 1 .in an F 1 ec t.r�.. on i. c s Cn��� p. v . V a lnt�� J ;"~ Nn. l... ...� 20740~ ,June :~o, 1964~ 11 SCRA 486). l� to~�lr.::>v er� ~ t�)!? agn:> e 1-'l.i th then Dol.i.c::.i.tor Gen r. r a l F s telit:o MendozF.:I and h.i.s �~ ~.:;s oc::.i.::1t:.es t:.h."'t .inclusion o �f hotels~ mn t:.r>1 ~; ,;,,nd r �e 5 t l1nu ~; es .i. n t:. he 20/.. c: '"' t .r::> r.. F.? ,... ' ~; t:. '"' H b r� '" c k e t . '"' t" e " .i. t:. e m5 " .i. n t:.h e mr,::. !:? l V P. s w.i. thin the mea n .i .nq n �f Sec. 20 2 4u '�

DECISION CTA CASE NO. 298 3 - 1.1. -- (".:r.), f'n� t . VI nf l h r. .1�:73:., Co n st.itut .ion ~�JIJ.i c: h � tllPI'�� r:! fnt�� p � the r�n~c::;Jdr;nt h ;v; the pnv1r.r�� to vr;-tn. 11n 11 l t .r. m" .i.n a r �F?ve nue b :l 11 r:ln e,-, not r�� p fr,r � t:.n �'�\ n e n t:l.r�e sec t :\.on J mp or.;..i. n g '"' p a r� t .i. c u 1 '"' ,.- I�: i. r 1d o f t '"' :t , b 1. t t r �.':\t h r.r� t:n t.h P. r-;t.tb .ir-?ct. o �f t.lle ta N and the ta >t r� ...-d..r::-. In t .l1 r. por�� t.inn r.:d a r�� evenue bill t�l h .ir.: ll <H:: tttall.y .i.tnposr.r:::. a t:.."' :�t, a ~.; ,~c t �l n n .i.d ent.i f .i.P5 t.hr- t ."'>: Pnt..tfTH?.r� ates the p r. t� 5 n r 1:,:-, 1 i "' b 1 e t l1 e r e f or � 111 .i. t. h the cpr � rl~~� r' nnrl .i. n q t.'�\:t r�� ate. lo c:r.m 5 t.r�� u e the t��Hwd 11 i. t.Pm 11 i'1~; r �p fr.���-r .tnq t:n the 1t1hole r::: F'C: t i. nn ~Klt.t 1 d t� .i.e t ll e P r �r. r::: .i. r:l F' rl t . ' 5 h F.HH:l .in r.: l1on ~;..i.nq e.i. t.t 1er�� tn i:"�\ ppt� O VP t .he v1hn l e r.~~..,ct: .inn '"'t the r.~: r~r.nsf? o �f F~lr.:-,o "' ppr �nv .i.ng "' pr�� n v i.">.lnt �l thr�r��eJn vJ h .i .c: h l1e de e ms t .trl <-,c r:: c�pt�..::\b lt?. n 1�� v r.�~ to t:t1r. Pnt. it��� t?. 5ec tinn '"' t:. t .hr? t?): p p n r-;e nf "for�egn.i. ng t . hf? C [) l l f? r.: t'. i.CH) (J �f t tH? k j rl r1 [) �f t.'~ >: ~ 1 t f:J q P t.h e l'.. . T llP ev .i 1 Hh.i c h \o'J�'' s r.;01tq Id :. t.n be pt�� eve n t. e d .i.n q i. v i.r1q t.l1r? pr � r.~s.i.de ll t: t:l1r:~ p ov1r:~r� the di.5.~\p["li'Tl VP .it:r.mc;. .i.rt '" rr. v r~r n.t r. b.i.ll \-'lottld bF~ ppr �pe tt�� t \ t.ro�d J'� l?n d rr �.i.ng t. h ,':\ t p ov1e r� :lnul.. .i.ln ( Sr-~P Cnm mon viP.A l t l l eH t���r-' 1. Elk.i.n v. n ,"-\1' nPt t:. ~ .t <79 Pn. Jl,.t, 55 LJ"iA 882 f:19Ul]). ~�Jt;~ <'~1-:cnrd.i. nqly huld pr>t . i t...i.nnpt�- not. e rd:..i.t:.led to tll F' c:l.'�\ i.m fn1��� t l11::� r� rfund ,,,.- c:r� er.:l.i.t. n �f the a mount o �f F' l � '16 7 , 7 :.11 � 7 0 '" �:; c: A t.r. ,... r. r�� ' s t:. a): � l�llfEREFOI1E, th P- c l r:lim for judiciAl refund or r:n~d � t by pP-titionP.r of the amount of P ,967,751.90 ig flpn;�by dPnir--rl. With costs against petitioner . SO ORDERED.

DECISION CTn CnBE NO . 2983 -- l2 - I CUIII :: UP: ~: :R R T I. F. I. C A T I. O N I tl!?t'l?by cr.>rtlfy th a t. this decision D'f t.hrc> Cour.. t: crf T .4:�: ()ppPi'' l "' .i.n ;"'ccor�� dancF? ~�l.i t.h 8F? c t.i.nrl 24u .,