Maceda v.

Macaraig
G.R. No. 88291
June 8, 1993
Nocon, J.

Facts:
The petition seeks to nullify certain decisions, orders, ruling, and resolutions of the
respondents (Macaraig et. al) for exempting the National Power Corporation (NPC) from indirect
tax and duties. The said corporation was characterized as a public corporation as declared under
the Commonwealth Act 120, and under the revised charter of such, the corporation was exempted
from the taxes, duties and other charges by the government. However, many resolutions, decisions
and other documents that discusses the exemption of NPC, that such corporation is not exempted
to such privileges.

Issue:
WON the NPC is exempted from indirect tax.

Held: Yes, the said corporation is exempted to indirect tax. It is evident that as a non-profit public
corporation that is made in order to bring service for the general good and welfare of the people.
Being exempted to tax is an assurance that the corporation will serve the people with cheaper
services and there will be continuance as to their generation of electricity is concerned.