CIR Vs Toledo Power Company
CIR Vs Toledo Power Company
CIR Vs Toledo Power Company
FACTS:
Toledo Power Company (TPC) is engaged in the business of power generation and the sale thereof to the
National Power Corporation (NPC), Cebu Electric Cooperative III (CEBECO), Atlas Consolidated Mining
and Development Corporation, and Atlas Fertilizer Corporation.
ISSUE:
WON TPC is entitled to the refund of its alleged unutilized input VAT
HELD:
> NO. In G.R. No. 195175- The date was clearly within two years from the close of the taxable quarters
when the sales were made. In this case, however, since the filing of the administrative claim was done
within the period where BIR Ruling No. DA-489-03 was recognized valid, TPC is not compelled to observe
the 120-day waiting period. Nevertheless, it should have filed the Petition within 30 days after the
expiration of the 120-day period.TPC should have filed its judicial claim from 23 December 2004 until 22
May 2005; however, it filed its Petition to the CTA only on 24 April 2006.TPC’s situation is not a case of
premature filing of a judicial claim, but of late filing.TPC lost its right to claim a refund or credit of its
alleged excess input VAT attributable to zero-rated or effectively zero-rated sales for taxable year 2004
by virtue of its own failure to observe the prescriptive periods.
> YES. In G.R. No. 199645- The administrative claim for the refund of unutilized input VAT was timely
filed on 23 December 2004, which was within two years from the close of the first and the second
quarters of 2003 when the sales were made. In theory, the CTA does not have jurisdiction over the
Petition, since it was filed on the last day of the 120-day period for the CIR, or without waiting for the
expiration of the aforesaid period. However, BIR Ruling No. DA-489-03 allows this premature filing. TPC
may claim the benefits of that ruling in its Petition in C.T.A. Case No. 7233 for the refund of the
unutilized input VAT attributable to zero-rated or effectively zero-rated sales for the first quarter of
2003. The Case was REMANDED to the CTA insofar as the Petition in C.T.A. Case No. 7233, for the
purpose of the computation of the refundable input VAT attributable to the zero-rated or effectively
zero-rated sales of Toledo Power Corporation for the first quarter of 2003.