Back

Province of Misamis Oriental vs. Cagayan Electric Power and Light Company, Inc. 181 SCRA 38

THE PROVINCE OF MISAMIS ORIENTAL, represented by its PROVINCIAL TREASURER, petitioner, vs. CAGAYAN ELECTRIC POWER AND LIGHT COMPANY, INC. (CEPALCO), respondent. Jaime A. Chaves for petitioner. Quiason, Makalintal, Barot & Torres for respondent.

G.R. No. 45355 | 1990-01-12

D E C I S I O N

GRIá'O-AQUINO, J:

The issue in this case is a legal one: whether or not a corporation whose franchise expressly provides that the payment of the "franchise tax of three per centum of the gross earnings shall be in lieu of all taxes and assessments of whatever authority upon privileges, earnings, income, franchise, and poles, wires, transformers, and insulators of the grantee" (p. 20, Rollo), is exempt from paying a provincial franchise tax.

Cagayan Electric Power and Light Company, Inc. (CEPALCO for short) was granted a franchise on June 17, 1961 under Republic Act No. 3247 to install, operate and maintain an electric light,...