Commissioner of Internal Revenue vs.

CA, 261 SCRA 236 (1996)

LEGISLATIVE v. INTERPRETATIVE RULE:

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.

It should be understandable that when an administrative rule is merely interpretative in nature, its
applicability needs nothing further than its bare issuance for it gives no real consequence more
than what the law itself has already prescribed. When, upon the other hand, the administrative
rule goes beyond merely providing for the means that can facilitate or render least cumbersome
the implementation of the law but substantially adds to or increases the burden of those
governed, it behooves the agency to accord at least to those directly affected a chance to be
heard, and thereafter to be duly informed, before that new issuance is given the force and effect
of law.

Peralta vs. Civil Service Commission, 211 SCRA 425 (1992)

INTERPRETATIVE RULE:

When an administrative or executive agency renders an opinion or issues a statement of policy, it

merely interprets a pre-existing law; and the administrative interpretation of the law is at best
advisory, for it is the courts that finally determine what the law means. It has also been held that
interpretative regulations need not be published.

ADMINISTRATIVE CONSTRUCTION; EFFECT:

Administrative construction is not necessarily binding upon the courts. Action of an

administrative agency may be disturbed or set aside by the judicial department if there is an error
of law, or abuse of power or lack of jurisdiction or grave abuse of discretion clearly conflicting
with either the letter or the spirit of a legislative enactment.

WHAT IS THE EFFECT OF AN INVALID ADMINISTRATIVE RULE?

The general rule vis--vis legislation is that an unconstitutional act is not a law; it confers no
rights; it imposes no duties; it affords no protection; it creates no office; it is in legal
contemplation as inoperative as though it had never been passed. But it is quite clear, however,
that such broad statements as to the effect of a determination of unconstitutionality must be taken
with qualifications. The actual existence of a statute, prior to such determination is an operative
fact and may have consequences which cannot always be ignored.