GR L 20125; (July, 1965) (Digest)
G.R. No. L-20125 July 20, 1965
NIN BAY MINING COMPANY, plaintiff-appellee, vs. MUNICIPALITY OF ROXAS, PROVINCE OF PALAWAN, defendant-appellant.
FACTS
The Municipality of Roxas, Palawan enacted Ordinance No. 12, series of 1960, imposing an inspection and verification fee of P0.10 per ton of silica sand excavated within its jurisdiction. The ordinance required inspection by the Municipal Treasurer and Chief of Police to verify permits from the Bureau of Mines and prevent encroachment on other claims. Nin Bay Mining Company, operating under mining lease contracts with the government since 1949/1950, paid P3,042.40 under protest from the ordinance’s enactment in October 1960 until May 1961. The company filed an action in the Court of First Instance of Manila seeking annulment of the ordinance and a refund, arguing the fee was an export tax prohibited by Sections 2287 and 2629 of the Revised Administrative Code, and not a valid police power measure. The lower court ruled in favor of Nin Bay Mining, annulling the ordinance and ordering a refund.
ISSUE
Whether the Municipality of Roxas had the authority to impose the inspection and verification fee under Ordinance No. 12.
RULING
Yes. The Supreme Court reversed the lower court’s decision and upheld the validity of Ordinance No. 12. The Court held that Republic Act No. 2264 granted municipalities general authority to impose license fees and charges for services rendered, subject to specific exceptions. The fee imposed was not among the enumerated exceptions. The legislative history indicated an intent to include mines and mining claims as objects of local taxation. The ordinance was a valid exercise of police power, as the inspection services were actually rendered to ensure compliance with mining permits and prevent encroachment, serving public interest. The fee was not assailed as excessive. Sections 2287 and 2629 of the Revised Administrative Code, which prohibited municipal taxes on goods carried out of a municipality, were deemed repealed by the later and more specific provisions of Republic Act No. 2264 . The case was dismissed, with costs against Nin Bay Mining Company.