CA junks Napocor petition to nullify foreclosure sale of Bataan properties
The Court of Appeals has dismissed for lack of jurisdiction the petition filed by the National Power Corp. (Napocor) asking the court to nullify the foreclosure sale of its real properties in Kitang, Limay, Bataan for non-payment of P60.5 million in franchise tax.
In its 11-page decision penned by Associate Justice Ramon Bato, Jr., the appellate court’s Sixth Division ruled that Napocor should have filed its appeal of the
According to the appellate court, under Section 7 of Republic Act No. 9282 (An Act Expanding the Jurisdiction of the CTA) it is the CTA which has exclusive jurisdiction over decisions, orders or resolutions of the lower court concerning local tax cases.
“The Court of Tax Appeals is a highly specialized body specifically created for the purpose of reviewing tax cases. By the nature of its functions, it is dedicated exclusively to the study and consideration of tax problems. For which reason, it is not hard to see why the law vested upon the Court of Tax Appeals the exclusive appellate jurisdiction to review decisions, orders, resolutions in tax cases,” the Court of Appeals said. The appellate court also brushed aside the argument of Napocor that the petition it had filed with the trial court was not a local tax case but a petition for the declaration of nullity of foreclosure sale with prayer for preliminary injunction. Napocor said it intended to enjoin the provincial government of
According to the CA, a closer look at the Napocor’s petition before the lower court, reveals that the controversy actually involves the imposition of local franchise taxes.
The appellate court said Napocor alleged in its petition that there is no law to support the collection of local franchise tax by the
Napocor in its petition before the trial court claimed that the operation of its generation facilities within the territorial jurisdiction of
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