MANILA, Philippines - The Court of Appeals (CA) has junked a bid seeking to stop the city government of Mandaluyong from proceeding with the forfeiture and sale of the properties of Metro Rail Transit Corp. (MRTC).
In an eight-page decision, the appellate court dismissed a petition filed by the Department of Transportation and Communications (DOTC) and MRTC seeking to stop the takeover and auction of MRT properties located in the city.
The CA said it had no jurisdiction over the case, and it should be referred to the Court of Tax Appeals (CTA).
The appellate court said the issue stemmed from the city government’s assessment of real property taxes amounting to P2.4 billion for the MRT stations on EDSA in Mandaluyong.
“Since the appellate jurisdiction over cases involving assessment and taxation of real properties lies with the CTA, petitions seeking to nullify the orders issued in such tax cases should be filed before the said appellate court,” the CA said.
It said under Republic Act 9282, or the law involving CTA’s jurisdiction, the tax court has the power to review decisions issued by the Central Board of Assessment Appeals over cases involving assessment and taxation of real property, originally decided by the provincial board of assessment appeals.
Associate Justices Mario Lopez and Myra Carcia-Fernandez concurred in the ruling.
In their petition, the MRTC and DOTC asked the CA to reverse the orders issued by the Mandaluyong City regional trial court in 2006 and 2007 denying their appeal to stop the city government from auctioning off the MRT property.
The DOTC earlier sought to nullify the real property tax assessment by the city government, claiming the subject properties are under its supervision and should therefore be exempted from paying taxes.
The city government said the provisions of the build, lease and transfer agreement, wherein the DOTC assumed MRTC’s tax liability, was null and void.
It said the executive department or any of its agencies, could not grant tax exemption privileges to a private entity.
The case involved three MRT train stations in Ortigas, Shaw Boulevard and Boni Avenue.