G.R. No. 213157 - NATIONAL GRID CORPORATION OF THE PHILIPPINES, VS. OFELIAM. OLIVA, IN HER OFFICIAL CAPACITY AS THE CITY TREASURER OF CEBU CITY;. G.R. NO. 213558OFELIA M. OLLVA, IN HER OFFICIAL CAPACITY AS THE CITY TREASURER OF CEBU CITY, VS. NATIONAL GRID CORPORATION OF THE PHILIPPINES.D E C I S I

Ruling

WHEREFORE, the Petition is hereby DISMISSED for lack of merit. SO ORDERED [11] NGCP filed a notice of appeal with memorandum on appeal [12] dated 9 December 2010 with the CBAA. NGCP argued that (1) its petition before the LBAA was timely filed; (2) it had the legal personality to file the petition before the LBAA; and (3) NGCP is exempt from payment of the real property taxes subject matter of the second and final notices of demand dated 16 and 21 September 2009 in the total amount of P2,792,862.41. The CBAA's Ruling The CBAA dismissed NGCP's appeal. The CBAA found NGCP liable for real property taxes on the subject properties for the year 2009. The CBAA stated that the petition of NGCP mailed on 11 March 2010 in the Quezon City Post Office for the LBAA of Cebu City was timely filed. The CBAA cited the following provision of Section 229(b) of the Local Government Code: "The proceedings of the Board shall be conducted solely for the purpose of ascertaining the facts without necessarily adhering to technical rules applicable in judicial proceedings." The LBAA's Order dismissing NGCP's appeal was based on a technicality and did not resolve the merits of the case. The CBAA took notice that a postal courier would probably know the locations of the offices of the City Assessor and City Treasurer but not of the LBAA. The CBAA further stated that many people, even lawyers, do not know that LBAA offices exist. The CBAA also stated that NGCP has the legal personality to institute an appeal. The CBAA cited Section 226 [13] of the Local Government Code and pronounced that NGCP has a legal interest in the properties of NPC/TRANSCO because NGCP is TRANSCO's concessionaire for electric transmission. The CBAA declared that Section 9 [14] of Republic Act No. 9511 (RA 9511), NGQP's franchise, does not exempt it from payment of real property taxes oh the subject properties. Section 234(a) [15] of the Local Government Code instead states that a taxable entity like NGCP, as the beneficial user of the subject properties, is liable for the real property tax. Moreover, it is the City Treasurer's duty to collect the real property tax based on the assessment of the City Assessor. The City Assessor, not the City Treasurer, has the power to decide whether a property is exempt from real property tax. The CBAA further declared that NGCP should claim from NPC/TRANSCO the refund of the taxes due for the years 2001 to 2008. The CBAA found that the subject properties are declared in the name of NPC/TRANSCO] and the notices of demand were addressed to NPC/TRANSCO. NPC/TRANSCO made a formal turn-over of the power transmission operation to NGCP on 15 January 2009; hence, NGCP received the notices on 24[September 2009. NGCP paid the assessed amount to City Treasurer Oliva under protest, which amount included taxes due for the years 2001 to 2008. Finally, the! CBAA ruled that the subject properties do not qualify as a special class of real property under Sections 216 [16] and 218(d) [1