MINDANAO BUS COMPANY V. CITY ASSESSOR AND TREASURER
6 SCRA 197
Petitioner is engaged in a public utility business, solely engaged in transporting passengers and cargoes by motor trucks, over its authorized lines in Mindanao. It owns a main office and branch offices. To be found in their offices are machineries and equipment, which were assessed by the City Assessor as real properties.
Movable equipments to be immobilized in contemplation of law must first be essential and principal elements of an industry or works without which such industry or works would be unable to function or carry on the industrial purpose for which it was established. We may here distinguish
those movables, which are essential and principal elements of an industry, from those which may not be so considered immobilized by destination because they are merely incidental, not essential and principal.
In the case at bar, the tools and equipments in question are by their nature not essential and principal elements of petitioner’s business of transporting passengers and cargoes by motor trucks. They are merely incidentals.