Facts:

• Team Energy Corporation, a power generation company, sells electricity to the National Power Corporation (NPC) under a Build, Operate, Transfer (BOT) scheme.
• The company is registered as a VAT taxpayer with the Bureau of Internal Revenue (BIR).
• On December 17, 2004, Team Energy filed an Application for VAT Zero-Rate for its electricity supply to NPC for the year 2005, which was approved.
• Team Energy filed its Quarterly VAT Returns for the first three quarters of 2005 and its Monthly VAT Declaration for October 2005, reflecting unutilized input VAT amounting to PHP 80,136,251.60.
• On December 20, 2006, Team Energy filed an administrative claim for a cash refund or issuance of a tax credit certificate for the unutilized input VAT.
• Due to the inaction of the Commissioner of Internal Revenue (CIR), Team Energy filed a Petition for Review with the Court of Tax Appeals (CTA) on April 18, 2007.
• The CTA Special First Division partially granted the petition, ordering a refund or issuance of a tax credit certificate amounting to PHP 79,185,617.33.
• Upon the CIR’s Motion for Reconsideration, the CTA reversed its decision, citing the Supreme Court's ruling in Commissioner of Internal Revenue v. Aichi Forging Company, Inc. (Aichi), which required compliance with the 120-day period for the CIR to act on the administrative claim before filing a judicial claim.
• Team Energy's subsequent Petition for Review with the CTA En Banc was denied, leading to the present petition before the Supreme Court.
• The petitioner argued that the requirement to exhaust the 120-day period was not jurisdictional and that the CTA had jurisdiction over the case.

Issue:

• (Unlock)

Ruling:

• The Supreme Court granted the Petition for Review on Certiorari, reversing and setting aside the May 2, 2011, and July 15, 2011, Resolutions of the CTA En Banc.
• The case was re...(Unlock)

Ratio:

• The Supreme Court clarified that while the 120-30-day period in Section 112 (C) of the National Internal Revenue Code (NIRC) is mandatory and jurisdictional, there are exceptions.
• One such exception is the period between the issu...continue reading