CIR v Aichi Forging Company of Asia, Inc.; G.R. No. 184823; 06 Oct 2010

in Legal Chyme by

On 30 September 2004, respondent filed a claim for refund/credit of input VAT for the period 01 July 2002 to 30 September 2002 with the petitioner Commissioner of Internal Revenue. On the same date, respondent filed a Petition for Review with the CTA for the refund/credit of the same input VAT.

Whether or not respondent’s administrative and judicial claims for tax refund/credit were filed within the two-year prescriptive period.

NO. The administrative and the judicial claims were simultaneously filed on 30 September 2004. Obviously, respondent did not wait for the decision of the CIR or the lapse of the 120-day period. For this reason, the filing of the judicial claim with the CTA was premature.

The second paragraph of Section 112(D) of the NIRC envisions two scenarios: (1) when a decision is issued by the CIR before the lapse of the 120-day period; and (2) when no decision is made after the 120-day period. In both instances, the taxpayer has 30 days within which to file an appeal with the CTA. As we see it then, the 120-day period is crucial in filing an appeal with the CTA.

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