G.R. No. 141309 - LIWAYWAY VINZONS-CHATO, VS. FORTUNE TOBACCO CORPORATION.R E S O L U T I O N - Supreme Court E-Library

Ruling

Accordingly, from the foregoing discussion, it is obvious that paragraph 2.02 of respondent's complaint loses the needed crutch to sustain a valid cause of action against the petitioner, for what is left of the paragraph is merely the allegation that only respondent's "Champion", "Hope" and "More" cigarettes were reclassified. If we divest the complaint of its reliance on CIR v. CA, what remains of respondent's cause of action for violation of constitutional rights would be paragraph 2.01, which reads: 2.01. On or about July 1, 1993, defendant issued Revenue Memorandum Circular No. 37-93 (hereinafter referred to as RMC No. 37-93) reclassifying specifically "Champion", "Hope" and "More" as locally manufactured cigarettes bearing a foreign brand. A copy of the aforesaid circular is attached hereto and made an integral part hereof as ANNEX "A". The issuance of a circular and its implementation resulted in the "deprivation of property" of plaintiff. They were done without due process of law and in violation of the right of plaintiff to the equal protection of the laws. (Italics supplied.) But, as intimated above, the bare allegations, "done without due process of law" and "in violation of the right of plaintiff to the equal protection of the laws" are conclusions of law. They are not hypothetically admitted in petitioner's motion to dismiss and, for purposes of the motion to dismiss, are not deemed as facts. In Fluor Daniel, Inc. Philippines v. EB. Villarosa & Partners Co., Ltd., [34] this Court declared that the test of sufficiency of facts alleged in the complaint as constituting a cause of action is whether or not, admitting the facts alleged, the court could render a valid verdict in accordance with the prayer of the complaint. In the instant case, since what remains of the complaint which is hypothetically admitted, is only the allegation on the reclassification of respondent's cigarettes, there will not be enough facts for the court to render a valid judgment according to the prayer in the complaint. Furthermore, in an action for damages under Article 32 of the Civil Code premised on violation of due process, it may be necessary to harmonize the Civil Code provision with subsequent legislative enactments, particularly those related to taxation and tax collection. Judicial notice may be taken of the provisions of the National Internal Revenue Code, as amended, and of the law creating the Court of Tax Appeals. Both statutes provide ample remedies to aggrieved taxpayers; remedies which, in fact, were availed of by the respondent--without even having to pay the assessment under protest--as recounted by this Court in CIR v. CA , viz. : In a letter, dated 19 July 1993, addressed to the appellate division of the BIR, Fortune Tobacco requested for a review, reconsideration and recall of RMC 37-93. The request was denied on 29 July 1993. The following day, or on 30 July 1993, the CIR assessed Fortune Tobacco for ad valorem tax deficiency amounting to P9