G.R. No. L-47743; April 14, 1941
THE COMMONWEALTH OF THE PHILIPPINES, plaintiff-appellee, vs. BIÑAN TRANSPORTATION CO., INC., defendant-appellant.

FACTS

The Commonwealth of the Philippines filed an action to recover from the Biñan Transportation Co., Inc. the sum of P742.50. This amount represented the second installment of registration fees for the year 1937 and a corresponding 50% surcharge for four trucks owned by the defendant. The defendant claimed exemption from payment on the ground that the trucks in question were withdrawn from operation during the second semester of 1937. Specifically, the certificates of public convenience for two trucks had been cancelled by the Public Service Commission, and the other two trucks had been voluntarily withdrawn from operation due to being unserviceable.

ISSUE

Whether the defendant is exempt from paying the second installment of the annual registration fee and the surcharge for its motor vehicles that were withdrawn from operation during the second semester of the registration year.

RULING

The Court ruled against the defendant and affirmed the judgment for the plaintiff. The liability to register motor vehicles and pay the corresponding annual registration fee attaches from the moment of operation, which, for the year, is from January 1. The law requires annual registration as a condition precedent to the lawful operation of any motor vehicle on public highways. The authority to pay the fee in two installments is merely for the convenience of public utility operators and does not serve as a ground for exemption if a vehicle is subsequently withdrawn from operation during the year for which the fee is due. Therefore, the defendant is liable for the full annual registration fee and the surcharge. The judgment of the lower court was affirmed, with costs against the appellant.