CEPALCO was granted a franchise which imposes upon it a franchise tax of 3% of the gross earnings in lieu of all taxes.

Pursuant to the Local Tax Code, the Province of Misamis enacted an ordinance imposing a franchise tax of of 1% of CEPALCOs gross annual receipts for the preceding calendar year. It demanded payment from CEPALCO, which paid under protest. The rule is that a special and local statute applicable to a particular case is not repealed by a later statute which is general in its terms, provisions and application even if the terms of the general act are broad enough to include the cases in the special law unless there is manifest intent to repeal or alter the special law. The franchise of CEPALCO expressly exempts it from payment of all taxes of whatever authority except the 3% tax on its gross earnings. Such exemption is part of the inducement for the acceptance of the franchise and the rendition of public service by the grantee.
Sometime in 1957, M.B. Estate Inc., of Bacolod City, donated 10,000.00 pesos in cash to Fr. Crispin Ruiz, the parish priest of Victorias, Negros Occidental, and predecessor of Fr. Lladoc, for the construction of a new Catholic church in the locality. The donated amount was spent for such purpose. On March 3, 1958, the donor M.B. Estate filed the donor's gift tax return. Under date of April 29, 1960. Commissioner of Internal Revenue issued an assessment for the donee's gift tax against the

Catholic Parish of Victorias of which petitioner was the parish priest. imposition of the gift tax was valid, under Section 22(3) Article VI of the Constitution contemplates exemption only from payment of taxes assessed on such properties as Property taxes contra distinguished from Excise taxes The imposition of the gift tax on the property used for religious purpose is not a violation of the Constitution. A gift tax is not a property by way of gift inter vivos. The head of the Diocese and not the parish priest is the real party in interest in the imposition of the donee's tax on the property donated to the church for religious purpose.