Respondent DEPI filed its monthly and quarterly value-added tax (VAT) returns for the period from January 1, 2003 to June 30, 2003. On August 9, 2004, it filed a claim for tax credit or refund for the unutilized input VAT attributable to its zero-rated sales. Because petitioner Commissioner of Internal Revenue (CIR) failed to act upon the said claim, respondent was compelled to file a petition for review with the CTA on May 5, 2005. CTA ruled in favor of DEPI. CIR elevated the case to CTA En Banc averring that the claim was filed out of time. DEPI asserts that its petition was seasonably filed before the CTA in keeping with the two-year prescriptive period provided for in Sections 204(c) and 229 of the NIRC. CTA En Banc affirmed the CTA division ruling.
Whether respondent DEPI’s judicial claim was filed within the prescriptive period under Sec. 112 of the Tax Code.
The two-year period inSec. 112 refers only to administrative claims. Sections 204 and 229 of the NIRC pertain to the refund of erroneously or illegally collected taxes.Input VAT is not ‘excessively’ collected as understood under Section 229 because at the time the input VAT is collected the amount paid is correct and proper. Hence, respondent cannot advance its position by referring to Section 229 because Section 112 is the more specific and appropriate provision of law for claims for excess input VAT.Petitioner is entirely correct in its assertion that compliance with the periods provided for in the abovequoted provision is indeed mandatory and jurisdictional, as affirmed in this Court’s ruling in San Roque, where the CourtEn Banc settled the controversy surrounding the application of the 120+30-day period provided for in Section 112 of the NIRC and reiterated the Aichi doctrine that the 120+30-day period is mandatory and jurisdictional.
Therefore, in accordance with San Roque, respondent’s judicial claim for refund must be denied for having been filed late. Although respondent filed its administrative claim with the BIR on August 9, 2004 before the expiration of the two-year period in Section l 12(A), it undoubtedly failed to comply with the 120+ 30-day period in Section l l 2(D) (now subparagraph C) which requires that upon the inaction of the CIR for 120 days after the submission of the documents in support of the claim, the taxpayer has to file its judicial claim within 30 days after the lapse of the said period. The 120 days granted to the CIR to decide the case ended on December 7, 2004. Thus, DEPI had 30 days therefrom, or until January 6, 2005, to file a petition for review with the CTA. Unfortunately, DEPI only sought judicial relief on May 5, 2005 when it belatedly filed its petition to the CTA, despite having had ample time to file the same, almost four months after the period allowed by law. As a consequence of DEPI’s late filing, the CTA did not properly acquire jurisdiction over the claim.