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.R. No. 181276 November 11, 2013

HE COMMISSIONER OF INTERNAL REVENE,Pe

s.

ISA!AS GEOTHERMAL "O#ER COM"AN!, INC.,Respondent.

D E C I S I O N

MEN$O%A, J.:

efore the Court is a Petition for Review on Certiorari under Rule 45 or the !"# Revised Rules of Civil Pro$edure assailin% the Nove&'er (", (""# De$ision 1and the )a""+ Resolution2of the Court of a- ppeals /C0 En Ban$ in C... EB No. (+( /C... Case Nos. 1#!" and 1+2+0 entitled 3Co&&issioner of Infernal Revenue vs.

eother&al Power Co&pan*, In$.3

6E 7CS

espondent isa*as eother&al Power Co&pan*, In$. /PCI0, a $orporation authori8ed '* the Depart&ent of Ener%* to own and operate a power plant fa$ilit* in 9ali'o%,

n%a%ed in the 'usiness of %eneration and sale of ele$tri$it*. In the $ourse of its 'usiness operations, PCI in$urred input value added ta- of P(",(2,"44.5" on its do&esti$

f %oods and servi$es and i&portation of %oods used in its 'usiness for the third and fourth ;uarter of ("" and for the entire *ear of (""(. 3Due to the ena$t&ent of RepuR.A.) No. 9136,4which became effective on June 26, 21, !"#$%&' 'ale' of eneate* powe became +eoate* an* wee no lone 'ub-ect to /.0

n )une (1, (""2, "#$% file* befoe the ueau of %ntenal Revenue (%R) Revenue i'tict No. 9 of moc $it5 a claim fo efun* of unutili+e* inpa5ment in the amount of #1,142,666.2( for the third ;uarter of ("". On De$e&'er +, (""2, another $lai& was filed in the a&ount of#19,,3.1 fo the la'tf 21 an* the fou 7uate' of 22. 8o failue of the %R to act upon 'ai* claim', !"#$% file* 'eparate petitions for review 'efore the C on Septe&'er nd De$e&'er !, (""2, pra*in% for a refund on the issuan$e of a ta- $redit $ertifi$ate in the a&ount of P,4(,111.2( $overin% the period fro& )ul* to Septe&'

ndP!,"#",2#+.+ for the period fro& O$to'er ("" to De$e&'er (""(, C Case Nos. 1#!" and 1+2+, respe$tivel*.6

its De$ision7dated )anuar* +, (""#, the 7irst Division of the C partiall* %ranted the $onsolidated petitions for review and ordered petitioner Co&&issioner of Internal CIR0 to efun* o to i''ue a ta ce*it cetificate to !"#$% in the amount of #16,300,49.4 epe'entin unutili+e* input !A incue* fom :epte1to De$e&'er 2, (""(.8

%%rieved, the CIR elevated the $ase to the $A ;n anc allein that the 8i't ivi'ion ee* in ulin in favo of !"#$% becau'e< (1) !"#$% *i* not vi*ence of it' compliance with the !A ei'tation e7uiement'= (2) it' pucha'e' of oo*' an* 'evice' wee not un*eta>en in the cou'e of i bu'ine'' an* wee not *ul5 'ub'tantiate* b5 !A invoice' o eceipt'= (3) it faile* to file an application fo a !A ta ce*it o efun* befevenue i'tict ffice of the cit5 o municipalit5 whee the pincipal place of bu'ine'' wa' locate*= (4) it *i* not file it' a*mini'tative claim foio to the filin of it' petition befoe the $A= an* (0) it wa' unable to pove that it' claime* input !A pa5ment' wee *iectl5 attibutable to itate* 'ale'.9

n Nove&'er (", (""#, the C En Ban$ pro&ul%ated its De$ision dis&issin% the petition and affir&in% the de$ision of the C 7irst Division, the dispositive portion o

adsen to ar%ue that Se$tion ((! is the &ore relevant provision of law. si&ple readin% of Se$tion ((! reveals that it onl* pertains to ta-es erroneousl* or iolle$ted udi$ial relief with the C '* wa* of Petition for Review.3 Prior to this rulin%, the BIR held, a

* its position in the Court of ppeals, that the e-piration of the ("@da* period is &andator* and urisdi$tional 'efore a udi$ial $lai& $an 'e filed.

- - - -

learl*, BIR Rulin% No. D@4+!@"2 is a %eneral interpretative rule. hus, all ta-pa*ers $an rel* on BIR Rulin% No. D@4+!@"2 fro& the ti&e of its issuan$e on " De$e&'er

its reversal '* this Court in i$hi on 1 O$to'er ("", where this Court held that the ("L2" da* periods are &andator* and urisdi$tional.31

herefore, althou%h the ("L2" da* period in Se$tion (/D0 is &andator* and urisdi$tional and &ust 'e applied fro& the effe$tivit* of the !!# a- Code on )anuar* ,

-$eption shall 'e &ade for udi$ial $lai&s filed fro& the issuan$e of BIR Rulin% No. D 4+!@"2 on De$e&'er ", (""2 until the pro&ul%ation of i$hi on O$to'er 1, (""e said period, a udi$ial $lai& for refund &a* 'e filed with the C even 'efore the lapse of the ("@da* period %iven to the BIR to de$ide on the ad&inistrative $ase.

su&, 'ased on the fore%oin% dis$ussion, the rules for the filin% of a $lai& for refund or ta- $redit of unutili8ed input $redit are as followsen to ar%ue that Se$tion ((! is the &ore relevant provision of law. Se$tion ((! applies onl* to ta-es erroneousl* or ille%all* $olle$ted. he appli$a'le pro

f the NIRC is undou'tedl* Se$tion (, whi$h deals spe$ifi$all* with $redita'le input ta-.

he Court relied on the $ases of Co&&issioner vs. 9irant, .R. #((!, Co&&issioner vs. i$hi 7or%in%, .R. +4+(2, and Co&&issioner vs. San Ro;ue Power, .R. No.

ate that the appropriate period for $lai&in% a refund or a ta- $redit for unutili8ed input is Se$tion (/0, and not Se$tion ((! of the NIRC. 7urther, input is not

e-$essivel* $olle$ted as understood under Se$tion ((! 'e$ause at the ti&e the input is $olle$ted, the a&ount paid is $orre$t and proper.

he ("@da* period under Se$tion (/D0 is $ru$ial in filin% an appeal with the C.

he appli$ation of the 2"@da* period fro& re$eipt of the de$ision of the CIR or fro& the lapse of the ("@da* period /the ("L2" da* period0 %iven to the ta-pa*er within w

le a petition for review with the C is &andator* and urisdi$tional.

owever, the $ourt too> noti$e of the issuan$e '* the BIR of Rulin% No. D@4+!@"2 dated De$e&'er ", (""2 whi$h allowed for the filin% of a udi$ial $lai& without waitin%

nd of the ("@da* period %ranted to the CIR to de$ide on the appli$ation for refund. herefore, althou%h the ("L2" da* period in Se$tion (/D0 is &andator* and urisdi$tio

ust 'e applied fro& the effe$tivit* of the !!# a- Code on )anuar* , !!+, an e-$eption shall 'e &ade for udi$ial $lai&s filed fro& the issuan$e of BIR Rulin% No. D 4+

e$e&'er ", (""2 until the pro&ul%ation of ommissioner vs. !ichi on O$to'er 1, ("".

en$e, the udi$ial $lai& filed on Septe&'er 2", (""2 was pre&aturel* filed and $annot 'e ta>en $o%ni8an$e of. 6owever, the udi$ial $lai& filed on De$e&'er !, (""2 $an '

onsidered '* the C 'e$ause of the e-$eption 'rou%ht a'out '* the BIR Rulin%.