G.R. No. 180884 ; June 27, 2008
Emerlinda S. Talento, in her capacity as the Provincial Treasurer of the Province of Bataan, petitioner, vs. Hon. Remigio M. Escalada, Jr., Presiding Judge of the Regional Trial Court of Bataan, Branch 3, and Petron Corporation, respondents.

FACTS

Petron Corporation received a revised real property tax assessment from the Provincial Assessor of Bataan, leading to a claimed deficiency of over P1.7 billion. Petron timely appealed this assessment to the Local Board of Assessment Appeals (LBAA) and posted a surety bond. Despite the pending appeal, the Provincial Treasurer issued a final notice of delinquency, a warrant of levy, and scheduled a public auction of Petron’s properties. Petron argued these collection efforts were premature due to its pending LBAA appeal and the posted bond.
Petron filed an urgent motion with the LBAA to lift the levy but later withdrew it. Instead, it filed a petition for prohibition with the Regional Trial Court (RTC), seeking to enjoin the auction. The RTC granted a writ of preliminary injunction, ordering the Provincial Treasurer to desist from the auction pending resolution of the main case, conditional upon Petron posting an additional bond. The Provincial Treasurer filed a petition for certiorari under Rule 65 directly with the Supreme Court, assailing the RTC’s order.

ISSUE

Whether the Supreme Court should grant the petition for certiorari challenging the RTC’s issuance of a preliminary injunction that suspended the tax collection.

RULING

The Supreme Court dismissed the petition. The Court held that the petitioner availed of the wrong remedy. The core question—whether tax collection may be suspended due to a pending appeal and the posting of a bond—involves a pure question of law. The proper mode of appeal from the RTC order was a petition for review on certiorari under Rule 45, not a special civil action for certiorari under Rule 65. Furthermore, the petition was filed 43 days late, beyond the 15-day reglementary period under Rule 45. This failure rendered the RTC’s order final and executory.
On the substantive matter, the Court clarified that under Section 267 of the Local Government Code, the appeal to the LBAA does not automatically suspend tax collection. Suspension requires either a payment under protest or, under Section 11 of Republic Act No. 1125 (as amended), a court order upon a finding that collection may jeopardize the government or taxpayer’s interest, and upon the taxpayer depositing the amount or filing a surety bond. The RTC, in granting the injunction, acted within its jurisdiction to prevent a moot auction that would deprive Petron of its right to a meaningful appeal, especially after it had posted a substantial bond. The petition was thus dismissed on procedural and substantive grounds.