Manila Electric Co. v. Central Board of Assessment Appeals

PROPERTY LAW

Manila Electric Co. v. Central Board of Assessment Appeals

G.R. No. L-47943, May 31, 1982

Facts:

Petitioner Manila Electric Co. questions the decision of the respondent Central Board of Assessment Appeals which held that petitioner’s pipeline to be subjected to realty tax. Pursuant to a concession, petitioner installed a pipeline system from Manila to Batangas. Meanwhile, the provincial assessor of Laguna treated the pipeline as a real property. So, petitioner appealed the assessments to Board of Assessment Appeals of Laguna. The board upheld the assessments and the decision became final and executory after the lapse of fifteen days from the date of receipt of a copy by the appellant. Petitioner contends that the Court of Tax Appeals has no jurisdiction to review the decision. Hence, the petitioner’s recourse to file a petition for certiorari before the Supreme Court.

Issue:

Whether or not the tanks together with the pipelines are taxable real property.

Ruling:

The Supreme court ruled in affirmative. It held that while two storage tanks are not embedded in the land, they may nevertheless be considered as improvements on the land, enhancing its utility and rendering it useful to the oil industry. It is undeniable that the two tanks have been installed  with some degree of permanence needed by the petitioner for its operations.

Petition is dismissed. The Board questioned decision is affirmed.