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Republic of The Philippines, Petitioner V. Pilipinas Shell Petroleum Corporation, Respondent

The Department of Energy informed Pilipinas Shell Petroleum Corporation that its contributions to the Oil Price Stabilization Fund for foreign exchange risk charges from 1989 to 1991 were insufficient, resulting in underpayments totaling over 24 million pesos plus surcharges. Pilipinas Shell paid the principal amounts but not the surcharges. The issue is whether Ministry of Finance Circular 1-85, which imposed the surcharges, was effective if it was not published or filed as required by law. The Supreme Court ruled that the circular was not effective because it was not published in any newspaper or filed with the National Administration Register, as mandated by law to prevent abuses and guarantee due process and public access to information.

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73 views2 pages

Republic of The Philippines, Petitioner V. Pilipinas Shell Petroleum Corporation, Respondent

The Department of Energy informed Pilipinas Shell Petroleum Corporation that its contributions to the Oil Price Stabilization Fund for foreign exchange risk charges from 1989 to 1991 were insufficient, resulting in underpayments totaling over 24 million pesos plus surcharges. Pilipinas Shell paid the principal amounts but not the surcharges. The issue is whether Ministry of Finance Circular 1-85, which imposed the surcharges, was effective if it was not published or filed as required by law. The Supreme Court ruled that the circular was not effective because it was not published in any newspaper or filed with the National Administration Register, as mandated by law to prevent abuses and guarantee due process and public access to information.

Uploaded by

Anonymous himZBVQco
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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REPUBLIC OF THE PHILIPPINES, Petitioner V.

PILIPINAS SHELL PETROLEUM CORPORATION,


Respondent

Facts:

On Dec 4, 1991, the Office of the Energy Affairs, now


the DOE, informed the respondent that its contributions
to the OPSF for foreign exchange risk charge for the
period Dec 1989 to March 1991 were insufficient. OEA
Audit Task Force noted a total underpayment of
P14,414,860.75 by respondent to the OPSF. As a
consequence of the underpayment, a surcharge of
P11,654,782.31 was imposed upon respondent. The
said surcharge was imposed pursuant to MOF Circular
No. 1-85, as amended by Department of Finance
Circular No. 2-94. Another underpayment in the amount
of P10,139,526.56 for the period Apr 1991 to Oct 1991
was noted with additional surcharges for
P2,806,656.65. The respondent paid the OEA in full the
principal amount of its underpayment, totaling
P24,554,387.31, but not the surcharges. The DOE
notified the respondent that the latter is required to pay
the surcharges on the late payment. Respondent then
filed a Notice of Appeal before the OP which affirmed
the conclusion of the DOE. The CA on appeal reversed
the Decision of the CA. Hence, this petition.

Issue:
Whether or not the Ministry of Finance (MOF) Circular
1-85 is effective though it was not released to any
publication or newspaper of general circulation nor filed
with the Office of the National Administration Register
(ONAR).
Ruling:

No, Ministry of Finance (MOF) Circular 1-85 is not


effective because it was not released to any publication
or newspaper of general circulation as what E.O. 200
requires before a law becomes effective, and it failed to
comply to Section 3 of Chapter 2, Book VII of the
Administrative Code of 1987. These requirements of
publication and filing were put in place as safeguards
against abuses on the part of lawmakers and as
guarantees to the constitutional right to due process
and to information on matters of public concern and,
therefore, require strict compliance.

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