GR L 8694; (April, 1956) (Digest)
G.R. No. L-8694; April 28, 1956
MANILA ELECTRIC COMPANY, plaintiff-appellant, vs. CITY OF MANILA, defendant-appellant.
FACTS
The Manila Electric Company (Meralco) operates seven steam boilers of more than 100 horsepower each in Manila. It paid inspection fees for these boilers to the National Government’s Department of Labor under regulations pursuant to Commonwealth Act No. 104, as amended. Additionally, upon demand by the City of Manila, Meralco paid under protest the total sum of P4,630 to the City as inspection fees pursuant to Chapter 117, Title 15 of the Revised Ordinances of Manila, which was enacted under the authority of the Manila Charter (Administrative Code). Meralco filed a suit to recover this amount, alleging that the city ordinance had been repealed by subsequent national legislation (Commonwealth Acts) and that the fees charged by the City were grossly disproportionate to the services rendered.
ISSUE
Whether the subsequent national legislation (Commonwealth Act No. 104, as amended) repealed the City of Manila’s charter power to tax and inspect steam boilers and charge inspection fees, thereby making the City’s collection from Meralco invalid.
RULING
The Supreme Court affirmed the lower court’s judgment dismissing Meralco’s complaint. The Court held that there was no repeal, either express or by implication, of the City’s charter powers. The national law (empowering the Secretary of Labor to inspect boilers and collect fees for the safety of laborers) and the city ordinance (empowering the City to tax and regulate boilers for the safety and welfare of its inhabitants, e.g., regarding fire hazards, noise, smoke) serve distinct purposes and can coexist. The power to tax and the power to regulate are separate; the existence of a national regulatory power does not nullify a local taxing power. Furthermore, regarding the reasonableness of the fees, the Court ruled that where the charge is imposed under the City’s undoubted power to tax (for revenue), the amount is generally a legislative matter, and courts will not interfere on the ground that it is excessive. The fees were collected under the City’s combined power to tax and to regulate, making an inquiry into their proportionality to services rendered immaterial.