Case Digest (G.R. No. 211882)
Facts:
In Commissioner of Internal Revenue v. Seagate Technology (Philippines) (G.R. No. 153866, February 11, 2005), the Commissioner of Internal Revenue (petitioner) sought to deny a claim by Seagate Technology (Philippines) (respondent), a resident foreign corporation registered with the SEC and PEZA and located in the Cebu Township One Special Economic Zone in Naga, Cebu. Respondent is a VAT-registered enterprise (VAT Reg. No. 97-083-000600-V, April 2, 1997) engaged in manufacturing recording components for export under PEZA Certificate No. 97-044 (June 6, 1997). Between April 1, 1998, and June 30, 1999, respondent paid input VAT on capital goods and filed its VAT returns for that period. On October 4, 1999, it submitted an administrative claim for refund of P28,369,226.38 (including P12,267,981.04 subject of this case) to RDO No. 83, Talisay, Cebu, but received no action. To preserve its right, respondent elevated the claim to the Court of Tax Appeals (CTA) on July 21, 2000. The CTCase Digest (G.R. No. 211882)
Facts:
- Parties and Background
- Seagate Technology (Philippines) (“respondent”) is a resident foreign corporation registered with the SEC and PEZA (PEZA Cert. No. 97-044 issued June 6, 1997) to manufacture recording components for export in the Naga, Cebu ecozone.
- Commissioner of Internal Revenue (“petitioner”) is sued in his official capacity.
- VAT Registration and Claim for Refund
- Respondent registered as a VAT taxpayer (VAT Reg. Cert. No. 97-083-000600-V issued April 2, 1997) and filed VAT returns for April 1, 1998 to June 30, 1999.
- On October 4, 1999 respondent filed an administrative claim for refund of input VAT totalling ₱28,369,226.38 (of which ₱12,267,981.04 is contested). No final action was taken by the BIR.
- Procedural History
- Respondent elevated its claim to the Court of Tax Appeals (CTA) on July 21, 2000 to toll prescription; on July 19, 2001, the CTA granted the refund.
- On May 27, 2002, the Court of Appeals (CA) affirmed the CTA decision, awarding a reduced refund of ₱12,122,922.66 and denied the petition for review filed by petitioner.
- Petitioner filed a Petition for Review under Rule 45 of the Rules of Court before the Supreme Court, challenging entitlement to the input VAT refund.
Issues:
- Whether respondent is entitled to the refund or issuance of a Tax Credit Certificate in the amount of ₱12,122,922.66 representing unutilized input VAT paid on capital goods purchased from April 1, 1998 to June 30, 1999.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)