Case Summary (G.R. No. 255085)
Antecedents of the Case
The case evolved from VSPI's claim for a refund of unutilized input VAT related to its operations as a domestic corporation providing installation and construction services within the renewable energy sector. After filing its Quarterly VAT Return on March 20, 2014, along with a claim for refund, VSPI argued that it generated gross receipts totaling PHP 546,196,162.22 during the quarter, with an unutilized input VAT of PHP 41,659,221.63 attributed to zero-rated transactions with EDC Burgos Wind Power Corporation.
Initial Rulings and Procedural History
Initially, on May 26, 2017, the CTA Division dismissed VSPI's claim citing a lack of jurisdiction due to the late filing of the judicial claim. However, subsequent developments, including a motion for reconsideration which highlighted procedural deficiencies in the CIR's original arguments, led to the reopening of the case. Eventually, the CTA admitted supplemental evidence showing that VSPI's administrative claim was timely, leading to a partial grant of the refund amounting to PHP 4,390,198.45 as established in the August 31, 2018 Amended Decision.
Ruling of the Court of Tax Appeals
The CTA affirmed the claim for refund based on findings that VSPI's sales of services to EDC Burgos were zero-rated in accordance with the Renewable Energy Act (RA 9513) and relevant provisions of the Tax Code. The CTA frowned upon the CIR’s argument against the merits of admitting supplemental evidence, supporting its ruling based on procedural technicalities and the nature of administrative claims.
Further Appeals and Decisions
Dissatisfied with the CTA's ruling, the CIR escalated the matter to the CTA En Banc, arguing that the supplemental evidence should not have been admitted and contesting the timeliness of VSPI's judicial claim. However, the En Banc found no merit in these arguments, concluding that timely filing was established and that procedural rules were appropriately relaxed by the CTA in the interests of substantial justice.
Timeliness of Judicial Claim
The court painstakingly outlined the critical timeline relevant to the filing and denial of tax refund claims as stipulated under Section 112 of the Tax Code. It underscored that the 30-day wi
...continue readingCase Syllabus (G.R. No. 255085)
Case Overview
- This case involves an appeal by the Commissioner of Internal Revenue (CIR) against Vestas Services Philippines, Inc. (VSPI) concerning a claim for a tax refund or credit.
- The appeal seeks to reverse the decisions of the Court of Tax Appeals (CTA) which had partially granted VSPI's claim for an unutilized input Value-Added Tax (VAT) amounting to PHP 4,390,198.45.
- The unutilized input VAT pertains to the fourth quarter of calendar year 2013 and was attributed to zero-rated receipts.
Antecedents
- VSPI, a domestic corporation registered as a VAT taxpayer, amended its primary purpose on February 22, 2013, to engage in installation and construction services, particularly in wind power systems.
- The corporation entered into a contract with EDC Burgos Wind Power Corporation, an export-oriented enterprise recognized by the Board of Investments.
- VSPI filed its VAT return for the fourth quarter of CY 2013 on March 20, 2014, alongside a request for a tax refund or credit certificate totaling PHP 41,659,221.63 based on its accumulated unutilized input VAT.
Procedural History
- The CIR contested VSPI's claim, asserting that the burden lies with VSPI to prove its entitlement to a tax refund, emphasizing the presumption against refunds as they are akin to tax exemptions.
- The CTA Division initially