8/12/2019 GR No. 16006, March 14, 2008 Case no 8

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GR NO. 16006 , March 14, 2008

Planters Products Inc, Petitioner

VS

erti!hil cor!oration , res!ondent

FACTS:

Petitioner PPI "Planters Products Inc.,# and !ri$ate res!ondent erti!hil are !ri$atecor!orations incor!orated under Phili!!ine la%s. &he' are (oth en)a)ed in the i*!ortation and

distri(ution o+ +ertiliers, !esticides and a)ricultural che*icals.

On -une , 1/8, then President erdinand Marcos, eercisin) his le)islati$e !o%ers,issued OI No. 146 %hich !ro$ided, a*on) others, +or the i*!osition o+ a ca!ital reco$er'

co*!onent "3R3# on the do*estic sale o+ all )rades o+ +ertiliers in the Phili!!ines. &he OI!ro$ides

. &he 5d*inistrator o+ the ertilier Pesticide 5uthorit' to include in its+ertilier !ricin) +or*ula a ca!ital contri(ution co*!onent o+ not less

than P 10 !er (a). &his ca!ital contri(ution shall (e collected until adeuate

ca!ital is raised to *a7e PPI $ia(le. Such ca!ital contri(ution shall (e

a!!lied (' P5 to all do*estic sales o+ +ertiliers in the Phili!!ines.

Pursuant to the OI, erti!hil !aid P10 +or e$er' (a) o+ +ertilier it sold in the do*estic *ar7et

to the ertilier and Pesticide 5uthorit' "P5#. P5 then re*itted the a*ount collected to the

ar ast 9an7 and &rust 3o*!an', the de!ositar' (an7 o+ PPI. erti!hil !aid P6,68/,144 to P5+ro* -ul' 8, 1/8 to -anuar' 24, 1/86.

erti!hil +iled a co*!laint +or collection and da*a)es a)ainst P5 and PPI %ith the R&3

in Ma7ati. It uestioned the constitutionalit' o+ OI No. 146 +or (ein) un:ust, unreasona(le,

o!!ressi$e, in$alid and an unla%+ul i*!osition that a*ounted to a denial o+ due !rocess o+la%. erti!hil alle)ed that the OI solel' +a$ored PPI, a !ri$atel' o%ned cor!oration, %hich used

the !roceeds to *aintain its *ono!ol' o+ the +ertilier industr'.

In its 5ns%er, P5, throu)h the Solicitor General, countered that the issuance o+ OI No.

146 %as a $alid eercise o+ the !olice !o%er o+ the State in ensurin) the sta(ilit' o+ the +ertilier

industr' in the countr'. It also a$erred that erti!hil did not sustain an' da*a)e +ro* the OI(ecause the (urden i*!osed (' the le$' +ell on the ulti*ate consu*er, not the seller.

ISSUE:

8/12/2019 GR No. 16006, March 14, 2008 Case no 8

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5+ter the 1/86 dsa Re$olution, P5 $oluntaril' sto!!ed the i*!osition o+ the P10

le$'. ;ith the return o+ de*ocrac', erti!hil de*anded +ro* PPI a re+und o+ the a*ounts it !aid

under OI No. 146, (ut PPI re+used to accede to the de*and.

&he unconstitutionalit' o+ the OI No 146 %hich is uestioned due u!on the )eneral

rule o+ ta %hich i*!lies that < +or !u(lic !ur!oses