Lapanday Foods Corporation v. CIR

 

Lapanday Foods Corporation v. CIR

CTA EB NO. 2360

February 21, 2022

Doctrine:

From the date an administrative claim for excess unutilized VAT is filed, a taxpayer has thirty (30) days within which to submit the documentary requirements sufficient to support his claim, unless given further extension by the CIR. Then, upon filing by the taxpayer of his complete documents to support his application, or expiration of the period given, the CIR has 120 days within which to decide the claim for tax credit or refund. Should the taxpayer, the date of his filing, manifest that he no longer wishes to submit any other addition documents to complete his administrative claim, the 120 day period allowed to the CIR begins to run from the date of filing.

Issue:

Whether or not taxpayer may wait for the CIR to come up with a decision before it files a judicial claim before the Court in Division. 

Held: 

No. A taxpayer should no longer wait for respondent to come up with a decision before it files a judicial claim before the Court in Division. In other words, a taxpayer must timely file its Petition for Review within thirty (30) days from the lapse of the 120- day waiting period. Otherwise, any claim filed beyond the 120+30 day period is outside the jurisdiction of this Court.

"To summarize, for the just disposition of the subject controversy, the rule is that from the date an administrative claim for excess unutilized VAT is filed, a taxpayer has thirty (30) days within which to submit the documentary requirements sufficient to support his claim, unless given further extension by the CIR. Then, upon filing by the taxpayer of his complete documents to support his application, or expiration of the period given, the CIR has 120 days within which to decide the claim for tax credit or refund. Should the taxpayer, the date of his filing, manifest that he no longer wishes to submit any other addition documents to complete his administrative claim, the 120 day period allowed to the CIR begins to run from the date of filing."

In this case, petitioner filed its administrative claim51 on March 14, 2013. Following the pronouncement in the Pilipinas Total Gas, Inc. case, petitioner had thirty (30) days, or until April 13. 2013, within which to submit its documentary requirements, if any. Accordingly, respondent had one hundred twenty (120) days from April 13. 2013. or until August 11, 2013, within which to render a decision on the said claim. However, in this case, there was no full or partial denial of the claim within the 120-day period. Rather, the 120-day period lapsed without a decision or ruling from the CIR. For his part, respondent issued a First Notice52 requ1nng petitioner to submit the requirements listed therein, only on November 11,2013, afterthe lapse of the 120-day period within which to decide the claim. Considering that respondent failed to act on petitioner's claim on or before August 11, 2013, petitioner had thirty (30) days, or until September 10, 2013, within which to file its judicial claim before the CTA.