CA orders BOC to justify raids against Mighty Corp.

The Court of Appeals (CA) has directed the government to justify the legality of the raids and inspections on warehouses of embattled cigarette maker Mighty Corporation.

In a March 28 resolution, the CA Fourth Division gave the government, particularly the Bureau of Customs (BOC), 10 days to comment on Mighty Corporation's petition.

In turn, Mighty Corporation has five days to respond to the government's position.

A hearing on the company's plea for temporary restraining order and writ of preliminary injunction was set for April 20.

The company turned to the appellate court after Judge Noli Diaz of the Manila Regional Trial Court, Branch 39, dismissed for lack of jurisdiction the plea of Mighty Corporation to stop the government from raiding and inspecting its warehouses.

Diaz said his authority as RTC judge to issue injunctions are limited to acts committed within his territorial jurisdiction – the National Capital Region.

Mighty Corporation questioned the raids on four warehouses inside San Simon Industrial Park in San Isidro, Pampanga, which led to the discovery and seizure of fake tax stamps on cigarette packs.

"Since the acts complained of sought to be enjoined by the complainant (Mighty Corporation) is in San Simon, Pampanga, this Court has no authority to issue such order," the resolution stated.

The judge refused to issue a preliminary injunction that would have extended the 20-day TRO handed down by Judge Tita Bughao Alisuag of the Manila Regional Trial Court, Branch 1. Alisuag had inhibited from the case, citing public criticism and threats to her life.

The TRO expired on March 23, the same day Diaz released the resolution.

Mighty Corporation is currently facing criminal charges before the Department of Justice for supposedly evading excise tax payments of up to P9.564 billion by using bogus tax stamps. — Virgil Lopez/VDS, GMA News