MANILA PENINSULA HOTEL, et al. vs. o n foo d, et al.

DECISION -

CTA CASE NO. 298s moana Of a connecting doar or pasar tuenty per cent aft thetr grouse receipts.

a "Where the establishments BYRD. operated ce maintained by clube crf AY kane or disposition af their net income and whether oor nob they cater euclusively to members ar their querste) the keepers oof. the establishments sahall pay the corresponding tax at the rate fined aAbave." funcderescoring ecu Fopublie Aet Ho. 4140 took ef feck an Seprrember 1, LRA. Fly thie vartue, petitioner acseracd the olith fixed tanes AUR operators cf qoif links and ree bar ants y ane abe percentage han (caterer’s bas) for ats sale of foods and fermented Taiquore/wines for the period covering September 1969 to December adn othe amount of POP. aod. oe. The 1979 elub protested claiming the aAstessment to be vt Cheuk thas die Prec: eters Secbhion A? yebored by the President Marcas. The meseracge preraacds e "RAYE AEAYPEYBIG Manila Augueaet 4, 19459 "Gentlemen of the Ueotuse of Representatives:

"TI have the honor to inform you that FT have this day eiqned HJR, No. 17@Q@39, entitled:

SAN ACT AHENDING

CERTAIN FROVISTONS

OF THE NAT TONAL TN TERNMAL

REVENUE CODE. AS AMENDED 24.

vette

DECTSIOUN -

CTA CASE NO.

VAS tons A kiedle Lewy, following pr.

revs m percep of of par tora qrone feood percent thio fermonted AG, See bor Coavbreroyr oct 298s PM yyreciany & be of a howrvor, Ff thre nicer Seven tien Pte OS).

the Comet tite have vetoed the items din this bills of sr seye weve PLN pan SEQ. 42, tte A vO Themermtind a whieh toaves cf imposes.

theres of the groan reeeinks proprio bors en epee bers roebatpanbe, rofrectinernt Ob bye eating perpen of the reeod pbs fireem sale of or orefreebiment oand seven On eras receipe from ape =e bhip mer beeed aaAle oof cietilled anirite, Taigumres oer wines, on rreoapr ie bors oF oOperakors af hare, cafes and vee bauiranke, evkbvesr clebe, fermented reyecds es CHE Cpe es eye reaching where niaces, dictilled Laiquore, or and ofeenonby operecent Ane laudinea spirits, Wines are of reaeeipks oon proprietors operators af restaurants. refreshiment parlors, bara, cafes madnbatned or oc omaperisc peebhoueae, faioalai, coluth.

to meary tes choverye and oobher reabtngq omlaces Within the premices of om hotel, eeackpdik, race eabareat. niath motel, tract, on day or owhtebh are acceesible matron oof eatie establish hy menne of a connecting or PAssaqe.

af bre the burden will be public.

“The avabion ahaifbted Consuming “The hotele, development af easential 24u NECISION CTA CASE NO. 2983 tro avr touriek tirrdrem bry, may be reetr aimed canmdder-- dine thra tf FR hig por hiewn of heater!

me nding COUTTS from food sale. see!

"Vhyies bhidld, HY. Ho.

TVRSY, has heeome Fepublic Act Heo, &010, “"Reepect fl ly, “ESRD Y PRRDENARID Fo. MARCOS functerecordng enue] The protestation oof the club was deniecd by the petitioner whoa maintains thak Seetion tPF wae nok entirely vetoed but merely the words "hotels, motels, reebthousee™ oan the oround that dt might restradmn the development of hotels which is essential fo the tourdam ineustry. This adie dn fact wan the position of the House bays and fdeans Committee which reported, to wits "Whon Canqrees decided tno emit Sec tien Sy. into tye parte, Cue dealing with contrac tars, and the other dealing with those who serve food and drinks, the anbention vars to classify and ta improve. While the Condresrs expanded the caveraqe of hoakh tet and Asien, Jb Alen provided for certain escompbians . The veto messaqe oF ENTS ta object certain additions to L91-A, What additions are objectionables can be gleaned from the reasans given: ai general reagan that this sort of tax is passed an to the consuming public, and a particular reason that hotel developments, 860 essential to the tourist industry, may be

DECTSION -

CIA CASE NO. 2PAS reetratnec., Theee rreagmns have hrererry taken together: in the dnterpretattans of the veto meee ace omaned the deletions af sich enterprises aS are cannec toed with the torvucdet industry has therefore heen recommended.

"To interpret the veto message atherwiecd worked pesalt in the exemption of entities Already sithbjeebk of tas. This wottld hye oo atberird. Where the Congress wanbteoc to exempt, it was so praoviced in the bill. While the PFProaidont may veto any item oor items in a reventie bili, the commtitattion does not qive him the power bo repeal an existing team. end Indorsement dakec December 6 1969, Chairman oon Ways and Means, Sixth Congress af the Republic of the Pha.) (Fxtis. 14, p. MS, TOT. . ree..." (np. 20°21, Rolle) Th CEA EL hy reason of this interpretation of the Committee that R.A. fla. GE1O was published din Volime 464, Mo. 18, p. 4ARSL of the Official Garette (May 4, AP7O) Gn such a way that Seetion ties was Ane duced an the test save for the words "hotels, motele, resthourtes.”

Ne already menkioned, the Court of Tax Appeals, upon peblibtion by the club, suckained the latter's position reasoning that the veto message was clear and unqualified, as in fact it was confirmed three years later, after much controversy .« bry the Qffice of the Fresident, thus:

"Mere. Antero MM. Sisan, Jr. Sam Martin Building, 19764, ‘‘. Mabini, PLO. Box 2288 Manila, Philippines

DECISTON --

CTA CASE NO. 2PAx "Near Gir:

"With reference heoyour letter dated Tudy 14, AS72, we wied to inform yo that Section A? [whitch contadns See. AGIA of Houree bill Ho. L789. new Ratt. Glia Ween Ce af t hres See kbar yetood hy the Preeident otin his veto message daked MAuguek 4, Les? . vetoing certain sections of the said revenie bid.

Very Truly Yours, "GED. Y TRUE fF. AGLEDPUIE. dn. Presidential Staff Aaaisgtant" Cp. 49, Balle) ‘Yer mentioned earlier, We have Already ruled that the presidential veto reforred meroly te the tne dusidoan of hotele=, motels and restimouses im the Roy eaterer ie tar hractheb bub mot toa the whole see tion, Fart, as mentioned earlier adea, the CTA opined that the President cendd neato veto words ar phrases in a bill but oanly an entire ikem. Obhvdousty. what the OTA meant by ‘Titem" was an entire cape kaon. We odo moat agree. But even ameuming ib ta be ea, tb would also be to petitioner oe favor. The ineffectual veto try tye President rendered thie whoate eee tion aFtl A as nak having heen vetoed Ab att) and at. therefore, became law as an unconetitutionabl veto has no ef fent whatsoever, (Sem Eolinag Electronics Corp. vw. Valeria, No. Le Ro790, June Fo, 19464, 11 SCRA 485).

However, Mee agree with then Soldedtor General Estelito Mendoza and hic associates that inclusion of hotels, mote les are res thouses dn the BOs, caterer’ s tan brant t Are "_tems" in themselves within the meaning of Sec. 2O

DECISION --

ChA CASE TI. BRIAR C7), Art. “VY mf the AVS Constitution ehich, there fere., the President has the power obo ovebo. An “Ahem” an a revenue badd ocoee mob refer booan entire section impoeing a particular fetmet of tan, but yathor ta the subject of the tax and the tan rate. In the portion of ai revenue bid) oubbieh actually imposes a tan, Aa ceckion identifies the tan enumerates the Per saps liahle there for with the cerreeponcding bar rate. To construe the word "ttem" as opeferr ing to the whole eocbkton world tie the Freetdent’s hand in chooring eda ther bo appr aye the whole ee kionm at the expense of also appraving cay provtecdon therein vibhyich bye deems tinaccephab le oor veto the entire cfection mk thie POPE rye of foreqaoing the caller tion of the kine of tax altogether.

The evil which war sordght to he prevented to ogtvtog the president othe power the dicapproyve ftbome in a reventiim tftb)o wereld bors peppm brated rendering thak power thubite (See Commonwealth ex ret. FElkin va Ttaypnebkh, 179? Fa. VAL, SR LRA Ba Pasvorqt yy, We armecorcdingly hold petitteaner mot entitled to the elaim for the rofund or eredit of the amount of PU, S72, 794 OO as caterer a has,

WHEREFORE, the claim fer judicial refund or han credit hy pekitioner of the AmaUNE of PL.9hH7,7581.99 is berphy denier, With costs against petitioner.

S0 ORDERED.

Quezon City, Netro Manila, Oc tonet IS, 1990, CONSTANTE 4. ROAQUIN phsoc fate Judge

NECTSTON --

CTA COSE HA. 29AS T COLPICUR s wee ALF 2 vena?

Aecocliate Tudqe —TwRPewT FPF TTA eT oO, I hereby certify that this decision WAG reached after due coansilbation between the members of the Courek of Tax Appeals in accordance with Section £3, Arbhindle VET «of the / ion.

hier C nfs C2 ROAAUIN A6saniate Judge \ urtoaf Tan Apneals ra / 240