FACTS
In 1988, pursuant to Sec. 40 of the Public Service Act, the National Telecommunications Commission (NTC) served on the Philippine Long Distance Telephone Company (PLDT) the assessment notices and demands for supervision and regulation fee and permit fees. PLDT challenged the assessments, arguing that these were being made to raise revenues and not as mere reimbursements for actual regulatory expenses, and that the assessments should only have been on the basis of the par values of PLDT’s outstanding capital stock.
The NTC denied the protest. Subsequently, the CA modified the NTC's order and ordered it to recompute its assessments and demands for payment from PLDT.
RULING
NTC and CA rulings set aside.
The law in point is clear and categorical: the fee in question is based on the capital stock subscribed or paid, nothing less nothing more. As such, the SC ordered the NTC to make a recomputation of the fee to be imposed on PLDT on the basis of the latter’s capital stock subscribed or paid.
Since Congress has the power to exercise the State's inherent powers of police power, eminent domain, and taxation, the distinction between police power and the power to taxwould not be of any moment when Congress itself exercises the power. All that is to be done would be to apply and enforce the law when sufficiently definitive and not constitutionally infirm.
