Vera v. Cuevas

Full Text: http://www.lawphil.net/judjuris/juri1979/may1979/gr_l_33693_1979.html

Facts:
Private respondents herein, are engaged in the manufacture, sale and distribution of filled milk products throughout the Philippines. The products of private respondent, Consolidated Philippines Inc. are marketed and sold under the brand Darigold whereas those of private respondent, General Milk Company (Phil.), Inc., under the brand "Liberty;" and those of private respondent, Milk Industries Inc., under the brand "Dutch Baby." Private respondent, Institute of Evaporated Filled Milk Manufacturers of the Philippines, is a corporation organized for the principal purpose of upholding and maintaining at its highest the standards of local filled milk industry, of which all the other private respondents are members.
CIR required the respondents to withdraw from the market all of their filled milk products which do not bear the inscription required by Section 169 of the Tax Code within fifteen (15) days from receipt of the order. Failure to comply will result to penalties. Section 169 talks of the inscription to be placed in skimmed milk wherein all condensed skimmed milk and all milk in whatever form, from which the fatty part has been removed totally or in part, sold or put on sale in the Philippines shall be clearly and legibly marked on its immediate containers, and in all the language in which such containers are marked, with the words, "This milk is not suitable for nourishment for infants less than one year of age," or with other equivalent words.
The CFI Manila ordered the CIR to perpetually restrain from requiring the respondents to print on the labels of their product the words "This milk is not suitable for nourishment for infants less than one year of age.". Also, it ordered the Fair Trade Board to perpetually restrain from investigating the respondents related to the manufacture/sale of their filled milk products.

Issue:
Whether or not skimmed milk is included in the scope of Section 169 of the Tax Code.

Held:
No, Section 169 of the Tax Code is not applicable to filled milk. The use of specific and qualifying terms "skimmed milk" in the headnote and "condensed skimmed milk" in the text of the cited section, would restrict the scope of the general clause "all milk, in whatever form, from which the fatty pat has been removed totally or in part." In other words, the general clause is restricted by the specific term "skimmed milk" under the familiar rule of ejusdem generis that general and unlimited terms are restrained and limited by the particular terms they follow in the statute.
The difference, therefore, between skimmed milk and filled milk is that in the former, the fatty part has been removed while in the latter, the fatty part is likewise removed but is substituted with refined coconut oil or corn oil or both. It cannot then be readily or safely assumed that Section 169 applies both to skimmed milk and filled milk. It cannot then be readily or safely assumed that Section 169 applies both to skimmed milk and filled milk. Also, it has been found out that "the filled milk products of the petitioners (now private respondents) are safe, nutritious, wholesome and suitable for feeding infants of all ages" (p. 44, Rollo) and that "up to the present, Filipino infants fed since birth with filled milk have not suffered any defects, illness or disease attributable to their having been fed with filled milk."
Hence, applying Section 169 to it would cause a deprivation of property without due process of law.