G.R. No. L-27360 February 28, 1968
HON. RICARDO G. PAPA, as Chief of Police of Manila; HON. JUAN PONCE ENRILE, as Commissioner of Customs; PEDRO PACIS, as Collector of Customs of the Port of Manila; and MARTIN ALAGAO, as Patrolman of the Manila Police Department, petitioners, vs. REMEDIOS MAGO and HILARION U. JARENCIO, as Presiding Judge of Branch 23, Court of First Instance of Manila, respondents.

FACTS

Petitioner Martin Alagao, head of the counter-intelligence unit of the Manila Police Department and acting upon orders of petitioner Ricardo Papa (a duly deputized agent of the Bureau of Customs), intercepted two trucks at Agrifina Circle, Ermita, Manila, on November 4, 1966, based on reliable information that the shipment of personal effects was misdeclared and undervalued. The nine bales of goods and the trucks were seized. A person claimed ownership, presenting a customs receipt in the name of Bienvenido Naguit. Respondent Remedios Mago, claiming ownership of the goods, filed a petition for mandamus with restraining order or preliminary injunction (Civil Case No. 67496) in the Court of First Instance of Manila, presided by respondent Judge Hilarion Jarencio, alleging the seizure was without a search warrant and seeking the return of the goods and trucks, and damages. The respondent judge issued an ex parte restraining order on November 10, 1966, but some bales had already been opened by customs examiners. Petitioners (defendants below) filed an answer, contesting the court’s jurisdiction, arguing the case fell within the exclusive jurisdiction of the Court of Tax Appeals and that administrative remedies were not exhausted. An inventory of the goods was conducted. On December 23, 1966, Mago filed an ex parte motion to release the goods upon bond. Petitioners opposed, noting seizure proceedings had been instituted by the Collector of Customs on January 12, 1967. On March 7, 1967, respondent Judge issued an order releasing the goods to Mago upon a P40,000 bond. Petitioners filed the present original action for prohibition and certiorari with preliminary injunction before the Supreme Court, seeking annulment of the March 7 order and to prohibit the respondent judge from further proceeding in the civil case, arguing the Court of First Instance had no jurisdiction.

ISSUE

Whether the Court of First Instance of Manila (through respondent Judge) had jurisdiction over Civil Case No. 67496 concerning the seized goods, or whether jurisdiction properly belonged to the Bureau of Customs and the Court of Tax Appeals.

RULING

The Supreme Court ruled that the Court of First Instance of Manila had no jurisdiction over the case. The Bureau of Customs, through the seizure effected by duly deputized agents, acquired exclusive jurisdiction over the goods for the purpose of enforcing the tariff and customs laws. The seizure was lawful as it was based on reliable information and conducted by a deputized agent in an inland place, authorized under the Tariff and Customs Code. The proper recourse for the claimant was to exhaust administrative remedies within the Bureau of Customs and then appeal to the Court of Tax Appeals, not to file a petition in the Court of First Instance. The writs of certiorari and prohibition were granted. The order dated March 7, 1967, was declared null and void for having been issued without jurisdiction. The preliminary injunction issued by the Supreme Court was made permanent, restraining the respondent judge from enforcing the order and proceeding with the case. Civil Case No. 67496 was ordered dismissed, with costs against private respondent Remedios Mago.