TOPIC: INTERPRETATIVE RULING

G.R. No. 119761 August 29, 1996

COMMISSIONER
OF
INTERNAL
REVENUE,
petitioner,
vs.
HON. COURT OF APPEALS, HON. COURT OF TAX APPEALS and FORTUNE TOBACCO
CORPORATION, respondents.
FACTS:
RMC No. 37-93 reclassified cigarettes branded HOPE, MORE and CHAMPION as foreign
brands.
ISSUE:
Whether or not RMC No. 37-93 is an interpretative ruling or opinion?
RULING:
Two kinds of administrative issuances a legislative rule and an interpretative rule.
In Misamis Oriental Association of Coco Traders, Inc., vs. Department of Finance Secretary, 11
the Court expressed:
. . . a legislative rule is in the nature of subordinate legislation, designed to implement a primary
legislation by providing the details thereof . In the same way that laws must have the benefit of
public hearing, it is generally required that before a legislative rule is adopted there must be
hearing.
In addition such rule must be published. On the other hand, interpretative rules are designed to
provide guidelines to the law which the administrative agency is in charge of enforcing.
A reading of RMC 37-93, particularly considering the circumstances under which it has been
issued, convinces us that the circular cannot be viewed simply as a corrective measure
(revoking in the process the previous holdings of past Commissioners) or merely as construing
Section 142(c)(1) of the NIRC, as amended, but has, in fact and most importantly, been made in
order to place "Hope Luxury," "Premium More" and "Champion" within the classification of
locally manufactured cigarettes bearing foreign brands and to thereby have them covered by RA
7654.