Matalin v. Malabang
Matalin v. Malabang
Matalin v. Malabang
CASE DIGESTS
Matalin Coconut Inc. v. Municipal Purakan Plantation, on account of the supposed adverse effects the
ordinance had on their business, was allowed to intervene in the action.
Council of Malabang The court a quo, after trial, declared the ordinance null and void, and
August 13, 1986 ordered the Municipal Treasurer to make the refunds, as well as to
Yap, J. enjoin and prohibit the Council, its agents and its deputies from
Rañeses, Roberto Miguel O. collecting taxes on the products belonging to intervenor Purakan. The
TC subsequently issued a writ of preliminary mandatory injunction,
SUMMARY: The Municipal Council of Malabang enacted an ordinance requiring the Municipal Treasurer to deposit with the PNB whatever
imposing a “police inspection fee” of P.30 per sack of cassava starch or amounts the petitioner had already paid or shall pay pursuant to the
flour. The said ordinance was challenged by Matalin Coconut, on ordinance in question up to and until final termination of the case.
account of its being ultra vires and its being unreasonable, oppressive, Upon motion for reconsideration, the writ was modified, to require the
and confiscatory. While the SC did not agree with the TC’s finding that deposit only of amounts paid from the effectivity of the writ up to and
it is a percentage tax that is beyond the scope of the power granted to until the final termination of the suit.
the Municipal Council’s to levy under the Local Autonomy Act, it
agreed with the TC’s finding that the tax imposed was unjust, The Municipal Council appealed to the SC. Matalin’s motion to dismiss
unreasonable, excessive, and confiscatory. was denied, as well as the Council’s motion to dissolve the writ.
However, the tax can be stricken down on the basis of its being
unjust and unreasonable. The reasons given for the imposition
of such a fee could not be given credence for (a) the police was
not competent enough to determine whether the starch or
flour was fit for human consumption and (b) that Matalin has
never requested for police protection as it has never been
molested by undesirable elements.