G.R. Nos. 203138-40, February 15, 2021
Commissioner of Customs vs. PTT Philippines Trading Corporation

FACTS

A Special Audit Team from the Bureau of Customs (BoC) assessed respondent PTT Philippines Trading Corporation (PTTPTC) for alleged mislabeling of imported fuel, finding it liable for P4,236,530,193.00 in customs duties, VAT, and penalties. The BoC issued a demand letter on November 7, 2007. PTTPTC made several payments: P117,681,394.00 under protest on October 1, 2007; P176,522,091.50 on November 29, 2007; and another P176,522,091.50 on December 18, 2007. PTTPTC filed four separate Petitions for Review before the Court of Tax Appeals (CTA): CTA Case No. 7707 (filed Nov. 20, 2007) assailing the validity of the assessment and demand letter and seeking a refund of the first payment; CTA Case No. 7981 (filed Sept. 30, 2009) seeking a refund of the first payment; CTA Case No. 8002 (filed Dec. 1, 2009) seeking a refund of the second payment; and CTA Case No. 8023 (filed Jan. 13, 2010) seeking a refund of the third payment. The petitioner, Commissioner of Customs, moved to dismiss these cases on grounds of forum shopping and lack of jurisdiction, arguing that CTA Case Nos. 8002 and 8023 were filed beyond the 30-day period to protest the demand letter. The CTA’s Second, First, and Third Divisions granted the motions to dismiss. PTTPTC appealed to the CTA En Banc, which reversed the Divisions’ resolutions and reinstated the petitions, ordering their consolidation. The Commissioner of Customs filed the present Petition for Review on Certiorari.

ISSUE

1. Whether the CTA En Banc acted without jurisdiction or with grave abuse of discretion in reinstating CTA Case Nos. 8002 and 8023, allegedly filed beyond the 30-day period to protest.
2. Whether the CTA En Banc committed serious error in reinstating the cases despite respondent’s alleged forum shopping.

RULING

The Supreme Court DENIED the petition and AFFIRMED the CTA En Banc’s Resolutions. On the issue of forum shopping, the Court held that the elements were not present. CTA Case No. 7707 was a protest against the assessment seeking its nullification, while CTA Case Nos. 8002 and 8023 were actions for refund of specific payments. The causes of action differed, and the latter two cases were considered mere supplemental petitions to the main protest case (CTA Case No. 7707). On the issue of jurisdiction, the Court ruled that the 30-day period to appeal under Section 11 of Republic Act No. 1125 , as amended, applies to protests against rulings or decisions of the Commissioner of Customs. However, CTA Case Nos. 8002 and 8023 were not appeals from a decision or ruling but were actions for refund. Since the main assessment was still being contested in CTA Case No. 7707, the issue of the timeliness of the refund claims was rendered moot. The cases were REMANDED to the CTA Third Division for consolidated proceedings.