7/24/2019 benguet vs cbaa (digested case)

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Benguet Corp. vs CBAA 218 SCRA 271

Doctrine: an "improvement" on a property is permanent in character andenhances both the value and utility of said property. Its immovable natureenes its character as real property.

Facts:In 1985, the Provincial Assessor of Zambales assessed the petitioner's tailingsdam as taable improvements!

Petitioner contended that the the dam cannot be s"b#ected to realt$ ta as aseparate and independent propert$ beca"se it does not constit"te an%assessable improvement% on the mine beca"se it is an integral part of themine!

 &o s"pport$ its contention, petitioner cited the folloing cases:(1) *"nicipalit$ of +otabato v! antosdi-es and gates constr"cted in connection ith a .shpond operation as

integral parts of the .shpond!(/) 0islig 0a$ "mber +o! v! Provincial2overnment of "rigao the realt$ ta as not imposed on a road constr"ctedb$ the timber concessionaire beca"se the government had the right to "sethe road to promote its varied activities!(3) 4endric- v! &in a-es eservoir +o! (American +ase)A reservoir dam ent ith and formed part of the reservoir(6) 7ntario ilver *ining +o! v! ion (+anada)Involved drain t"nnels constr"cted hen mining operations ere epanded!!!it as held that %hatever val"e the$ have is connected ith and in fact is anintegral part of the mine itself!%

7n the other hand, olicitor 2eneral's arg"es that the dam is an assessableimprovement beca"se it enhances the val"e and "tilit$ of the mine!

Iss"e: hether or not the tailings dam in "estion is an %improvement% "ponthe land ithin the meaning of the eal Propert$ &a +ode!

eld: ;es! &he co"rt r"led that the s"b#ect dam falls ithin the de.nition of an%improvement% beca"se it is permanent in character and it enhances boththe val"e and "tilit$ of petitioner's mine! &he immovable nat"re of the damde.nes its character as real propert$ "nder Article 615 of the +ivil +ode andth"s ma-es it taable "nder ection 38 of the eal Propert$ &a +ode!