536 Phil. 511
AZCUNA, J.:
Balagtas Multi-Purpose Cooperative, Inc. (Balagtas, for brevity) is a duly organized and existing cooperative under the laws of the Philippines. Sometime in April 1991, Balagtas hired Josefina G. Hipolito-Herrero, (Josefina, for brevity) as part time manager in its office in Sulok, Panginay, Balagtas, Bulacan, where she was required to report on a monthly salary of P4,000.00 between 2:00 to 6:00 p.m., Monday to Friday.Petitioners then filed a petition for certiorari with the CA, alleging that the NLRC acted with grave abuse of discretion amounting to excess or lack of jurisdiction in directing them to post an appeal bond despite the clear mandate of Article 62, paragraph (7)[4] of Republic Act No. 6938 (Cooperative Code) which dispensed with such requirement. The CA initially dismissed the petition for failure of petitioners to attach copies of the certain relevant documents and records cited therein. However, when the matter was elevated to the Court, the CA was directed to admit the petition filed by petitioners.
In September 1992, Balagtas created a branch office at Wawa, Balagtas, Bulacan. Josefina was required to report at the said Wawa branch from 8:00 to 12:00 noon before reporting to her office at Sulok from 2:00 to 6:00 p.m. For the additional work, Josefina received a proportionate increase in salary.
In the early part of 1994, the board members contemplated closing its Wawa Branch Office inasmuch as the desired number of the members and volume of transactions were not met with, rendering it more costly to maintain.
On May 1, 1994, in their monthly meeting, Josefina informed (them) that she intends to take a leave of absence from May 9 to May 30, 1994. Her proposal was immediately approved by the board.
In a Special Meeting on June 2, 1994, the board members resolved to close its Wawa branch. Meantime, after the lapse of her leave of absence on May 30, 1994, Josefina did not report for work anymore. Later on, she filed her resignation.
Almost nine (9) months thereafter, on February 25, 1995, Josefina filed a complaint with the Provincial Office of the Department of Labor in Malolos, Bulacan for illegal dismissal, and non-payment of 13th month pay or Christmas Bonus. She pray(ed) that she be reinstated and paid backwages as well as moral damages.
The case was referred to a Labor Arbiter. When the parties failed to settle their differences, they were required to submit their respective position papers. Trial ensued. On March 23, 1998, the Labor Arbiter rendered his decision, to wit:"WHEREFORE, premises considered, judgment is hereby entered in favor of complainant and against respondents, ordering the latter, jointly and severally as follows:Aggrieved, Balagtas appealed the decision to the National Labor Relations Commission (NLRC) but failed to post either a cash or surety bond as required by Article 223 of the Labor Code. Instead, petitioners filed a manifestation and motion, stating, among others, that under Republic Act No. 6938, Article 62(7) of the Cooperative Code of the Philippines, petitioners are exempt from putting up a bond in an appeal from the decision of the inferior court.All other issues or claims are hereby ordered dismissed for want of merit.
- To pay the sum of P2,000.00 as 13th month pay of complainant for the years 1995 up to 1997;
- To pay the additional sum of P188,000.00 as backwages of complainant from the date of her dismissal up to this writing; and,
- To pay the additional sum of P28,000.00 as separation pay of complainant from 1991 up to this writing.
SO ORDERED." (NLRC Decision, p. 6; Rollo, p. 26)
On July 20, 1998, the NLRC rendered the assailed order, to wit:"WHEREFORE, premises considered, respondents are hereby given ten (10) inextendible days from receipt of this Order within which to post a cash or surety bond in the amount of TWO HUNDRED EIGHTEEN THOUSAND PESOS (P218,000.00) PESOS, failure of which shall constitute a waiver and non-perfection of the appeal.On September 28, 1998, the NLRC struck down petitioners' Motion for Reconsideration (Annex B, pp. 18-20, Rollo).
In addition thereto, the employer as well as counsel shall submit a joint declaration under oath attesting that the surety bond posted is genuine and that it shall be in effect until final disposition of the case.
SO ORDERED." (NLRC Order, p. 4; Rollo, p. 15)
If the lawmakers' intention is for an "all embracing exemption in favor of all cooperatives, including but not limited to quasi-judicial bodies, Congress could simply have provided that all cooperatives are exempted from the requirement of posting appeal bonds in all its appeal(s) regardless of the nature of the suit or the forum where the action is filed. Ironically, this is not what appears in the cooperative law, and [it] instead delimits the exemption only to appeals from the decision of the inferior courts. That, a fortiori, is the manifest intention of the legislators.Their motion for reconsideration having been denied, petitioners filed the present petition.
Withal, we are dealing with a matter of exemption from a usual requirement in taking an appeal. In the ordinary course of things, if there is a genuine intention to give cooperatives "a cover all" exemption from the appeal bond requirement, it must be clearly and unequivocally stated in the law. Exemptions cannot spring out of mere presumptions or deductions.[5]
Art. 62. Tax and Other Exemptions. - Cooperatives transacting business with both members and nonmembers shall not be subject to tax on their transactions to members. Notwithstanding the provisions of any or regulation to the contrary, such cooperatives dealing with nonmembers shall enjoy the following tax exemptions:Considering that the above provision relates to "tax and other exemptions," the same must be strictly construed. This follows the well-settled principle that exceptions are to be strictly but reasonably construed; they extend only so far as their language warrants, and all doubts should be resolved in favor of the general provision rather than the exceptions.[8]
(1) Cooperatives with accumulated reserves and undivided net savings of not more than Ten million pesos (P10,000,000.00) shall be exempt from all national, city, provincial, municipal or barangay taxes of whatever name and nature. Such cooperatives shall be exempt from customs duties, advance sales or compensating taxes on their importation of machineries, equipment and spare parts used by them and which are not available locally as certified by the Department of Trade and Industry. All tax-free importations shall not be transferred to any person until after five (5) years, otherwise, the cooperative and the transferee or assignee shall be solidarily liable to pay twice the amount of the tax and/or duties thereon.
(2) Cooperatives with accumulated reserves and undivided net savings of more than Ten million pesos (P10,000,000.00) shall pay the following taxes at the full rate:(a) Income Tax - On the amount allocated for interest on capitals: Provided, That the same tax is not consequently imposed on interest individually received by members;
(b) Sales Tax - On sales to nonmembers: Provided, however, That all cooperatives, regardless of classification, are exempt from the payment of income and sale taxes for a period of ten (10) years.
For cooperatives whose exemptions were removed by Executive Order No. 93, the ten-year period shall be reckoned from the effectivity date of said executive order. Cooperatives created after the approval of this Code shall be granted the same exemptions, the period of which shall be reckoned from the date of registration with the Authority: Provided, That at least twenty-five per centum (25%) of the net income of the cooperatives is returned to the members in the form of interest and/or patronage refunds;
(c) All other taxes unless otherwise provided herein; and
(d) Donations to charitable, research and educational institutions and reinvestment to socioeconomic projects within the area of operation of the cooperative may be tax deductible.
(3) All cooperatives, regardless of the amount of accumulated reserves and undivided net savings shall be exempt from payment of local taxes and taxes on transactions with banks and insurance companies: Provided, That all sales or services rendered for nonmembers shall be subject to the applicable percentage taxes except sales made by producers, marketing or service cooperatives: Provided, further, That nothing in this article shall preclude the examination of the books of accounts or other accounting records of the cooperative by duly authorized internal revenue officers for internal revenue tax purposes only, after previous authorization by the Authority.
(4) Any judge in his capacity as notary public, ex-officio, shall render service, free of charge, to any person or group of persons requiring either the administration of oath or the acknowledgment of articles of cooperation of a cooperative applicant for registration and instruments of loan from cooperative not exceeding Fifty thousand pesos (P50,000.00).
(5) Any register of deeds shall accept for registration, free of charge, any instrument relative to a loan made under this Code which does not exceed Fifty thousand pesos (P50,000.00) or the deeds of title of any property acquired by the cooperative or any paper or document drawn in connection with any action brought by the cooperative or with any court judgment rendered in its favor or any instrument relative to a bond of any accountable officer of a cooperative for the faithful performance of his duties and obligations.
(6) Cooperatives shall be exempt from the payment of all court sheriff's fees payable to the Philippine Government for and in connection with all actions brought under this Code, or where such action is brought by the Cooperative Development Authority before the court, to enforce the payment of obligations contracted in favor of the cooperative.
(7) All cooperatives shall be exempt from putting up a bond for bringing an appeal against the decision of an inferior court or for seeking to set aside any third party claim: Provided, That a certification of the Authority showing that the net assets of the cooperative are in excess of the amount of the bond required by the court in similar cases shall be accepted by the court as a sufficient bond.
(8) Any security issued by cooperatives shall be exempt from the provisions of the Securities Act provided such security shall not be speculative.
Art. 119. Compliance with Other Laws. - (1) The Labor Code and all other labor laws shall apply to all cooperatives.For this reason, petitioners must comply with the requirement set forth in Article 223 of the Labor Code in order to perfect their appeal to the NLRC. It must be pointed out that the right to appeal is not a constitutional, natural or inherent right. It is a privilege of statutory origin and, therefore, available only if granted or provided by statute. The law may validly provide limitations or qualifications thereto or relief to the prevailing party in the event an appeal is interposed by the losing party. [13]
[5] Rollo, p. 42.x x x(7) All cooperatives shall be exempt from putting up a bond for bringing an appeal against the decision of an inferior court or for seeking to set aside any third party claim: Provided, That a certification of the Authority showing that the net assets of the cooperative are in excess of the amount of the bond required by the court in similar cases shall be accepted by the court as a sufficient bond.