RETROACTIVITY OF LAWS

CEBU PORTLAND CEMENT COMPANY vs COLLECTOR (Now COMMISSIONER) OF INTERNAL

REVENUE
G.R. No. L-20563, October 29, 1968
ANGELES, J.:

DOCTRINE:
It is a settled rule in statutory construction that a statute operates prospectively only and never retroactively,
unless the legislative intent to the contrary is made manifest either by the express terms of the statute or by
necessary implication. In every case of doubt, the doubt must be resolved against the retrospective effect.

FACTS:
Prior to the effectivity of RA1299 the petitioner have been paying the sales tax computed at 7% of the
gross selling price inclusive of the bag containers of cement and the gypsum used in the manufacture of the said
product.
The petitioner files for a refund of Php 458, 241.41 sales tax paid from November 1, 1954 to March
1955 and Php 427,552.95 ad valorem tax paid from April 1955 to September 30, 1956 in the CIR.
While waiting for the ruling, petitioners filed before the CTA a petition for review of the action of CIR
in refusing to entertain their claim. The petition states that the percentage taxes collected by respondent are
refundable under the amendment of RA 1299 and that APO Portland are exempt from the payment of tax.
It is urged by petitioner that since the purpose of the amendment was merely to clarify the meaning of
said terms, the section should be construed as if it had been originally passed in its amendment form, so that
cement should be considered as “mineral product” even before the enactment of RA 1299 and therefore exempt
from the sale or percentage tax pursuant to NIRC.

ISSUE:
Are the sales and percentage taxes collected prior to RA 1299 from APO Portland Cement is
refundable?

HELD:
No, the taxes collected from the petitioner prior to the amendment of 246 of the NIRC by RA 1299
cannot be refunded. The SC held that a statute operates prospectively only and never retroactively, unless the
legislative intent to the contrary is made either by the express terms of the statute or by necessary implication.