Republic vs Pilipinas Shell

1. FACTS:

a) The Oil Price Stabilization Fund was created under PD 1956 for the purpose of
minimizing frequent price changes brought about by exchange rate adjustments
and/or increase in world market prices of crude oil and petroleum products.

b) EO 137 was enacted to amend PF 1956.

c) Office of Energy Affairs (DOE), informed the respondent that its contributions to the
OPSF were insufficient. It noted a total underpayment of P14.4 Million. As a
consequent, a surcharge of P11.7 Million was imposed upon the respondent. Said
surcharge was imposed pursuant to MOF Circular No. 1-85, as amended by DOF
Circular 2-84.

d) DOE wrote another letter for its additional underpayment of P10.1 Million and
surcharges of P2.8 Million.

e) Respondent paid the DOE in full of the princcipall amount of P24.6 Million, but not th
surcharges.

f) Respondent filed a letter of appeal before the Office of the President.

g) OP - affirmed the conclusion of the DOE. While it admited that the implementation of
the MOF Circular 1-85 is contingent upon its publication and filing with the ONAR, it
notes that the respondent failed to adduce evidence of lack of compliance with such.

h) Filed MR; denied.

2. CA - reversed the decision of the OP.

a) Ruled that the MOF was ineffective for failure to comply with the requirement to file
with ONAR.

b) Noted that even if MOF was issued before the passage of Admin Code, the latter
provides that rules already in force on the date of effectivity of the Admin Code must
be filed within 3 months from the date of effectivity of the Code, otherwise such rules
cannot thereafter be the basis of any sanction against any party or persons.

3. ISSUES:

a) WON MOF Circular has been affirmed by EO 137 as such it cannot be rendered
invalid by the subsequent enactment of a law (Admin Code) requiring registration
with the ONAR.

b) Assuming the registration is required, respondent waived its objection on the basis of
non-registration when it paid the amount required by the petitioner.

4. Supreme Court:

a) Admin rules and regulations must also be published if their purpose is to enforce or
implement existing law pursuant to a valid delegation.

b) Tanada vs Tuvera, MOF Circular is one of the issuances which should be published
before it becomes effective.

c) Aside from being published, it must also be registered with the ONAR in UP Law
Center as required by the Admin Code.
d) These requirements are guarantees to the constitutional right to due process and
to information on matters of public concern, thus require strict compliance.

e) It was not published neither in the Official Gazette or in any newspaper of general
circulation.

f) Strict compliance with the requirements of publication cannot be annulled by a mere

allegation that parties were notified of the existence of the implementing rules
concerned.

g) Also, even if there is public consultation and submission by parties of comments, the
requirement of publication of implementing rules of statues is mandatory and may
not be dispenses with altogether.