GR 207112; (December, 2015) (Digest)
G.R. No. 207112, December 8, 2015
PILIPINAS TOTAL GAS, INC., PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
FACTS
Petitioner Pilipinas Total Gas, Inc. (Total Gas), a VAT-registered entity, filed administrative claims for refund of unutilized input VAT for the first two quarters of 2007. It filed its administrative claim with the BIR on May 15, 2008, and submitted additional supporting documents on August 28, 2008. Faced with the Commissioner’s inaction, Total Gas filed a judicial claim with the Court of Tax Appeals (CTA) on January 23, 2009. The CTA Division dismissed the petition, ruling it was prematurely filed because Total Gas failed to submit complete supporting documents as required by RMO No. 53-98. Consequently, the 120-day period for the Commissioner to act had not commenced, and Total Gas had not exhausted administrative remedies. The CTA En Banc affirmed but on a different ground, holding the judicial claim was filed out of time. It counted the 120-day period from the initial administrative filing on May 15, 2008, and the subsequent 30-day appeal period from its lapse, concluding the petition filed on January 23, 2009, was belated.
ISSUE
The primary issue is whether Total Gas seasonably filed its judicial claim for refund of unutilized input VAT.
RULING
The Supreme Court granted the petition and reversed the CTA En Banc. The Court held that the judicial claim was timely filed. The 120-day period for the Commissioner to decide a claim for refund under Section 112(C) of the NIRC begins to run only from the date of submission of a complete administrative claim, including all required supporting documents. Total Gas filed its administrative claim on May 15, 2008, but completed the submission of documents only on August 28, 2008. Therefore, the 120-day period commenced on August 28, 2008, and expired on December 26, 2008. Total Gas then had 30 days, or until January 25, 2009, to file its judicial appeal. Its filing on January 23, 2009, was within this period. The Court rejected the CTA En Banc’s view that the period starts from the initial filing, as this would penalize taxpayers for submitting documents piecemeal to comply with BIR requirements. The ruling ensures taxpayers are afforded the full statutory period for the Commissioner’s evaluation upon complete submission, aligning with the principle that a claim is only deemed filed for the purpose of the 120-day period when all substantiating documents are presented.