G.R. No. 258791

TAIHEI ALLTECH CONSTRUCTION (PHIL.) INC., PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. D E C I S I O N

[ G.R. No. 258791. December 07, 2022 ] 932 Phil. 681

SECOND DIVISION

[ G.R. No. 258791. December 07, 2022 ]

TAIHEI ALLTECH CONSTRUCTION (PHIL.) INC., PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. D E C I S I O N

LAZARO-JAVIER, J.:

The Case

This Petition for Review on Certiorari[1] seeks to reverse and set aside the following dispositions of the Court of Tax Appeals En Banc in CTA EB No. 2331 (CTA Case No. 10108):

Decision[2] dated July 19, 2021 affirming the dismissal on jurisdictional ground of the judicial claims for refund of petitioner Taihei Alltech Construction (Phil.) Inc. (Taihei) in the total amount of P19,345,434.54 representing unutilized excess tax credit for the 3rd and 4th quarters of calendar year 2011; and

Resolution[3] dated February 3, 2022, denying the motion for reconsideration of the Commissioner of Internal Revenue.

The Proceedings before the Bureau of Internal Revenue

Taihei is a domestic corporation[4] primarily engaged in the construction of industrial plants.[5] It is Value Added Tax (VAT)-registered with the Bureau of Internal Revenue under Certificate of Registration OCN 9RC0000361302 dated June 22, 1994 with TIN 000-146-092-000.[6] Within the mandatory two-year period under Section 112(A),[7] National Internal Revenue Code, as amended, Taihei filed the following administrative claims for refund before the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center of the Department of Finance in the total amount of P19,345,434.54 representing unutilized excess tax credit for the 3rd and 4th quarters of calendar year 2011, together with all the supporting documents:[8]

a)

September 30, 2013 - For excess input VAT for the 3rd Quarter (July to September) of calendar year 2011 in the amount of P6,649,651.47.[9]

b)

December 23, 2013 - For excess input VAT for the 4th Quarter (October to December) of calendar year 2011 in the amount of  P12,695,783.07.[10]

Meantime, on June 11, 2014, the Commissioner of Internal Revenue issued Revenue Memorandum Circular No. 54 (RMC 54-2014) following the decision in CIR v. San Roque Power Corporation[11] and Mindanao II Geothermal Partnership v. CIR,[12] viz.:

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

June 11, 2014

REVENUE MEMORANDUM CIRCULAR NO. 54-2014

SUBJECT

:

Clarifying Issues Relative to the Application for Value Added Tax (VAT) Refund/Credit under Section 112 of the Tax Code, as amended

TO

:

All Internal Revenue Officers and Others Concerned