G.R. No. 125948 December 29, 1998 First Philippine Industri l !orp. ". !# First Philippine Industrial Corp.

v. CA, Paterno Tac-an, Bantangas City, and Adoracion Arellano (treasurer of Batangas) G.R. No. 125948 December 29, 1998 Martinez, J. FACT ! FPI! $ %r ntee o& pipeline concession under Republic #ct No. '8(, s mended, to contr ct, inst ll nd oper te oil pipelines It pplied &or m )or*s permit +ith the ,&&ice o& the - )or o& . t n% s !it). .e&ore the permit could be issued, it + s re/uired b) the !it) 0re surer to p ) loc l t 1 b sed on its %ross receipts &or the &isc l )e r 199' pursu nt to the 2oc l Go"ernment !ode. It p id the t 1 under protest. It &iled compl int &or t 1 re&und lle%in% th t 13 the imposition nd collection o& the business t 1 on its %ross receipts "iol tes 4ection 1'' o& the 2oc l Go"ernment !ode +hich %r nts t 1 e1emption to common c rriers5 23 the uthorit) o& cities to impose nd collect t 1 on the %ross receipts o& 6contr ctors nd independent contr ctors7 under 4ec. 141 8e3 nd 151 does not include the uthorit) to collect such t 1es on tr nsport tion contr ctors &or, s de&ined under 4ec. 1'1 8h3, the term 6contr ctors7 e1cludes tr nsport tion contr ctors5 nd, '3 the !it) 0re surer ille% ll) nd erroneousl) imposed nd collected the s id t 1, thus meritin% the immedi te re&und o& the t 1 p id. I "# ! 1. 9,N FPI! is common c rrier5 2. 9,N it is e1empted &rom p )in% the t 1es re/uired b) the !it) 0re surer $#%&! 1. :es. FPI! is en% %ed in the business o& tr nsportin% or c rr)in% %oods, i.e. petroleum products, &or hire s public emplo)ment. It undert ;es to c rr) &or ll persons indi&&erentl), th t is, to ll persons +ho choose to emplo) its ser"ices, nd tr nsports the %oods b) l nd nd &or compens tion. common c rrier < holds himsel& out to the public s en% %ed in the business o& tr nsportin% persons or propert) &rom pl ce to pl ce, &or compens tion, o&&erin% his ser"ices to the public %ener ll) 8see lso #rt. 1('23 test &or determinin% +hether p rt) is common c rrier o& %oods= . en% %ed in the business o& c rr)in% %oods &or others s public emplo)ment, nd must hold himsel& out s re d) to en% %e in the tr nsport tion o& %oods &or person %ener ll) s business nd not s c su l occup tion5 b. undert ;es to c rr) %oods o& the ;ind to +hich his business is con&ined c. undert ;es to c rr) b) the method b) +hich his business is conducted nd o"er his est blished ro ds d. tr nsport tion is &or hire common ser"ice coincides +ith public ser"ice pu'lic service $ includes e"er) person th t no+ or here &ter m ) o+n, oper te. m n %e, or control in the Philippines, &or hire or compens tion, +ith %ener l or limited clientele, +hether perm nent, occ sion l or ccident l, nd done &or %ener l business purposes, n) common c rrier, r ilro d, street r il+ ), tr ction r il+ ), sub+ ) motor "ehicle, either &or &rei%ht or

p ssen%er, or both, +ith or +ithout &i1ed route nd +h te"er m ) be its cl ssi&ic tion, &rei%ht or c rrier ser"ice o& n) cl ss, e1press ser"ice, ste mbo t, or ste mship line, pontines, &erries nd + ter cr &t, en% %ed in the tr nsport tion o& p ssen%ers or &rei%ht or both, ship) rd, m rine rep ir shop, +h r& or doc;, ice pl nt, ice<re&ri%er tion pl nt, c n l, irri% tion s)stem % s, electric li%ht he t nd po+er, + ter suppl) nd po+er petroleum, se+er %e s)stem, +ire or +ireless communic tions s)stems, +ire or +ireless bro dc stin% st tions nd other simil r public ser"ices 8!# No. 141>, s mended, other+ise ;no+n s the Public 4er"ice #ct3 FPI! < considered common c rrier under #rt. 8> o& the Petroleum #ct o& the Philippines 8R# '8(3, +hich pro"ides th t= #rt. 8>. Pipe line concession ire s common c rrier. ? # pipe line sh ll h "e the pre&erenti l ri%ht to utili@e inst ll tions &or the tr nsport tion o& petroleum o+ned b) him, but is obli% ted to utili@e the rem inin% tr nsport tion c p cit) pro r t &or the tr nsport tion o& such other petroleum s m ) be o&&ered b) others &or tr nsport, nd to ch r%e +ithout discrimin tion such r tes s m ) h "e been ppro"ed b) the 4ecret r) o& #%riculture nd N tur l Resources. FPI! is lso public utilit) pursu nt to #rt. ( o& R# '8( +hich st tes th t 6e"er)thin% rel tin% to the e1plor tion &or nd e1ploit tion o& petroleum . . . nd e"er)thin% rel tin% to the m nu& cture, re&inin%, stor %e, or tr nsport tion b) speci l methods o& petroleum, is hereb) decl red to be public utilit)7 2. :es. 2e% l b sis is 4ection 1'' 8A3, o& the 2oc l Go"ernment !ode +hich pro"ides th t 6Bnless other+ise pro"ided herein, the e1ercise o& the t 1in% po+ers o& pro"inces, cities, municip lities, nd b r n% )s sh ll not e1tend to the le") o& the &ollo+in%= 0 1es on the %ross receipts o& tr nsport tion contr ctors nd persons en% %ed in the tr nsport tion o& p ssen%ers or &rei%ht b) hire nd common carriers b) ir, l nd or + ter, e1cept s pro"ided in this !ode7. Re son &or the e1ception= to "oid duplic tion o& t 1