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    Meralco Securities Industrial Corp V CBAA

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    John Yeung
    Meralco Securities installed a pipeline system from Batangas to Manila to transport petroleum products. The provincial assessor of Laguna treated the pipeline as real property subject to realty tax. Meralco Securities appealed, arguing that the pipeline is not real property. The Central Board of Assessment Appeals affirmed that the pipeline is subject to realty tax. The Supreme Court also affirmed, finding that the pipeline is a construction adhered to the soil and attached to the land, making it real property as defined by law and subject to realty tax.

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    Meralco Securities Industrial Corp V CBAA

    Uploaded by

    John Yeung
    290 views1 page
    Meralco Securities installed a pipeline system from Batangas to Manila to transport petroleum products. The provincial assessor of Laguna treated the pipeline as real property subject to realty tax. Meralco Securities appealed, arguing that the pipeline is not real property. The Central Board of Assessment Appeals affirmed that the pipeline is subject to realty tax. The Supreme Court also affirmed, finding that the pipeline is a construction adhered to the soil and attached to the land, making it real property as defined by law and subject to realty tax.

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    (8) Meralco Securities Industrial Corp v CBAA

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    Meralco Securities installed a pipeline system from Batangas to Manila to transport petroleum products. The provincial assessor of Laguna treated the pipeline as real property subject to realty tax. Meralco Securities appealed, arguing that the pipeline is not real property. The Central Board of Assessment Appeals affirmed that the pipeline is subject to realty tax. The Supreme Court also affirmed, finding that the pipeline is a construction adhered to the soil and attached to the land, making it real property as defined by law and subject to realty tax.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    290 views1 page

    Meralco Securities Industrial Corp V CBAA

    Uploaded by

    John Yeung
    Meralco Securities installed a pipeline system from Batangas to Manila to transport petroleum products. The provincial assessor of Laguna treated the pipeline as real property subject to realty tax. Meralco Securities appealed, arguing that the pipeline is not real property. The Central Board of Assessment Appeals affirmed that the pipeline is subject to realty tax. The Supreme Court also affirmed, finding that the pipeline is a construction adhered to the soil and attached to the land, making it real property as defined by law and subject to realty tax.

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    © All Rights Reserved
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    of 1

    (8) MERALCO SECURITIES INDUSTRIAL CORPORATION, petitioner, v

    no application to this case and that even under A415, the steel pipes can be
    CENTRAL BOARD OF ASSESSMENT APPEALS, BOARD OF ASSESSMENT APPEALS regarded as realty because they are constructions adhered to the soil and things
    OF LAGUNA and PROVINCIAL ASSESSOR OF LAGUNA, respondents. May 31, 1982 attached to the land in a fixed manner and that Meralco Securities is not exempt
    from realty tax under the Petroleum Law.
    Special Civil Action of certiorari to review the decision of the CBAA
    Meralco: Its pipeline is not subject to realty tax because it is not real property
    AQUINO, J.
    within the meaning of A415.
    FACTS:
    ---------------------Pursuant to a pipeline concession issued under the Petroleum Act of 1949, RA
    WON Meralco's pipeline is a real property subject to realty tax.
    No. 387, Meralco Securities installed from Batangas to Manila a pipeline system Held: Yes.
    consisting of cylindrical steel pipes joined together and buried not less than one (1) It is incontestable that the pipeline of Meralco Securities does not fall within
    meter below the surface along the shoulder of the public highway. The portion any of the classes of exempt real property enumerated in S3 of the Assessment
    passing through Laguna is about thirty kilometers long.
    Law and S40 of the Real Property Tax Code.
    In points where the pipeline traversed rivers or creeks, the pipes were laid
    (2) Article 415[l] and [3] provides that real property may consist of constructions
    beneath the bed thereof. Hence, the pipes are permanently attached to the land. of all kinds adhered to the soil and everything attached to an immovable in a
    fixed manner, in such a way that it cannot be separated therefrom without
    However, Meralco Securities notes that segments of the pipeline can be moved breaking the material or deterioration of the object.
    from one place to another (if for example, req'd by the Gov't, should they be
    affected by any road repair or improvement.)
    The pipeline system in question is indubitably a construction adhering to the
    soil. It is attached to the land in such a way that it cannot be separated
    Pursuant to the Assessment Law, Commonwealth Act No. 470, the provincial
    therefrom without dismantling the steel pipes which were welded to form the
    assessor of Laguna treated the pipeline as real property and issued Tax
    pipeline.
    Declarations, containing the assessed values of portions of the pipeline.
    Insofar as the pipeline uses valves, pumps and control devices to maintain the
    Meralco Securities appealed the assessments to the Board of Assessment Appeals flow of oil, it is in a sense machinery within the meaning of the Real Property
    of Laguna, which, however, upheld the assessments.
    Tax Code.
    Meralco Securities then brought the case to the Central Board of Assessment
    Appeals but ended w/ the same result.
    It should be borne in mind that what are being characterized as real property
    are not the steel pipes but the pipeline system as a whole.
    Meralco Securities filed its MR. It was denied, hence this petition.
    ------------------DISPOSITIVE: The questioned decision and resolution are affirmed. The petition
    CBAA: Meralco Securities' pipeline is subject to realty tax as the pipes are
    is dismissed. No costs.
    machinery or improvements, as contemplated in the Assessment Law and the
    Real Property Tax Code. They do not fall within the category of property exempt
    from realty tax under those laws.
    Articles 415 and 416 of the Civil Code, defining real and personal property, have

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