GR 173241; (March, 2015) (Digest)
G.R. No. 173241 March 25, 2015
SILICON PHILIPPINES, INC. (formerly INTEL PHILIPPINES MANUFACTURING, INC.), Petitioner, vs. COMMISSIONER OF INTERNAL REVENUE, Respondent.
FACTS
Petitioner Silicon Philippines, Inc. (SPI), a VAT-registered exporter, filed an Application for Tax Credit/Refund of Value-Added Tax Paid covering the Third Quarter of 1998 on May 6, 1999. The claim totaled P25,531,312.83, comprising P2,425,764.00 for input VAT on capital goods and P23,105,548.83 for input VAT attributable to zero-rated sales. The Commissioner of Internal Revenue failed to act on the application. Consequently, SPI filed a Petition for Review before the Court of Tax Appeals (CTA) Division on September 29, 2000. The CTA Division partially granted the claim, allowing only the refund for input VAT on capital goods (P2,425,764.00) and denying the claim for input VAT on zero-rated sales (P23,105,548.83) due to SPI’s failure to comply with invoicing requirements, specifically the imprinting of “zero-rated” and the BIR permit to print number on its sales invoices. The CTA en banc affirmed this decision. SPI elevated the case to the Supreme Court via a Petition for Review.
ISSUE
Whether the CTA en banc erred in denying SPI’s claim for refund of input VAT attributable to its zero-rated sales.
RULING
The Supreme Court dismissed the petition. The Court did not reach the substantive issue regarding compliance with invoicing requirements. Instead, it resolved the case on a jurisdictional ground. Applying the doctrine established in Commissioner of Internal Revenue v. San Roque Power Corporation, the Court held that the filing of the judicial claim was premature. SPI filed its administrative claim on May 6, 1999. Under Section 112 of the 1997 Tax Code, the Commissioner has 120 days from the submission of complete documents to act on the claim. The taxpayer can only appeal to the CTA after the 120-day period expires or within 30 days from receipt of a decision. SPI filed its Petition for Review with the CTA on September 29, 2000, which was beyond the 120-day period (which ended on September 4, 1999) and also beyond the 30-day period to appeal from the expiration of the 120-day period (which ended on October 4, 1999). Therefore, SPI’s judicial claim was filed out of time. The Court emphasized that the 120-day period is mandatory and jurisdictional, and failure to observe it renders the judicial claim void.