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    Steag State Power, Inc. v. Commissioner of Internal Revenue, G.R. No. 205282, January 14, 2019 (Third Division)

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    John Kenneth Jacinto
    This case involves Steag State Power filing administrative claims for refund of input VAT payments for capital goods used in constructing its power plant. The Commissioner of Internal Revenue took no action on the claims. Steag State Power then filed petitions for review with the Court of Tax Appeals, but these were denied as being filed outside the statutory timelines. The Court of Tax Appeals en banc and the Supreme Court affirmed the dismissals, with the Supreme Court holding that Steag State Power failed to file its judicial claims within 30 days after the Commissioner's inaction, as required by law.

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    Steag State Power, Inc. v. Commissioner of Internal Revenue, G.R. No. 205282, January 14, 2019 (Third Division)

    Uploaded by

    John Kenneth Jacinto
    269 views1 page
    This case involves Steag State Power filing administrative claims for refund of input VAT payments for capital goods used in constructing its power plant. The Commissioner of Internal Revenue took no action on the claims. Steag State Power then filed petitions for review with the Court of Tax Appeals, but these were denied as being filed outside the statutory timelines. The Court of Tax Appeals en banc and the Supreme Court affirmed the dismissals, with the Supreme Court holding that Steag State Power failed to file its judicial claims within 30 days after the Commissioner's inaction, as required by law.

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    This case involves Steag State Power filing administrative claims for refund of input VAT payments for capital goods used in constructing its power plant. The Commissioner of Internal Revenue took no action on the claims. Steag State Power then filed petitions for review with the Court of Tax Appeals, but these were denied as being filed outside the statutory timelines. The Court of Tax Appeals en banc and the Supreme Court affirmed the dismissals, with the Supreme Court holding that Steag State Power failed to file its judicial claims within 30 days after the Commissioner's inaction, as required by law.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    269 views1 page

    Steag State Power, Inc. v. Commissioner of Internal Revenue, G.R. No. 205282, January 14, 2019 (Third Division)

    Uploaded by

    John Kenneth Jacinto
    This case involves Steag State Power filing administrative claims for refund of input VAT payments for capital goods used in constructing its power plant. The Commissioner of Internal Revenue took no action on the claims. Steag State Power then filed petitions for review with the Court of Tax Appeals, but these were denied as being filed outside the statutory timelines. The Court of Tax Appeals en banc and the Supreme Court affirmed the dismissals, with the Supreme Court holding that Steag State Power failed to file its judicial claims within 30 days after the Commissioner's inaction, as required by law.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Steag State Power, Inc. v. Commissioner of Internal Revenue, G.R. No.

    205282, January 14, 2019 (Third


    Division)

    [G.R. No. 205282. January 14, 2019.]

    STEAG STATE POWER, INC. v. COMMISSIONER OF INTERNAL REVENUE

    FACTS:

    Steag State Power is a domestic corporation primarily engaged in power generation and sale of electricity to the
    National Power Corporation under a Build, Operate, Transfer Scheme.

    While constructing its power plant in Misamis Oriental, Steag State Power filed before the BIR, administrative
    claims for refund of its allegedly unutilized input VAT payments on capital goods.

    Due to the Commissioner of Internal Revenue's inaction on its administrative claims, Steag State Power filed a
    Petition for Review on Certiorari before the CTA, elevating its claim for refund for the taxable year 2004, and
    later, through another Petition, seeking judicial recourse involving its claim for refund for the taxable year 2005.
    Both petitions were consolidated.

    The CTA First Division denied the Petitions, holding that the first judicial claim (administrative claims for refund of
    input taxes for January 2004 to May 2005) was filed late. The second judicial claim (appeal of the refund claim of
    input taxes for June 2005 to October 2005) was likewise denied for Steag State Power's failure to prove that its
    purchases and importations related to the claimed input tax payments were treated as capital goods in its books
    of accounts and were subjected to depreciation.

    On appeal, the CTA En Banc affirmed the dismissal of the cases. Upon denial of its Motion for Reconsideration,
    Steag State Power filed a Petition for Review on Certiorari.

    ISSUE:

    Whether Steag State Power is entitled to refund.

    HELD:

    The Motion for Reconsideration is denied.

    First, petitioner's judicial claims were filed on April 20, 2006 and December 27, 2006; hence, they were governed
    by the Tax Code, which clearly provided: (1) 120 days for the Commissioner to act on a taxpayer's claim; and (2)
    30 days for the taxpayer to appeal either from the Commissioner's decision or from the expiration of the 120-day
    period in case of the Commissioner's inaction.

    Second, under Section 112 of the Tax Code, only the administrative claim for refund of input value-added tax
    must be filed within the two (2)-year prescriptive period, the judicial claim need not be.

    Third, the right to appeal before the Court of Tax Appeals, being a statutory right, can be invoked only under the
    requisites provided by law. Section 11 of Republic Act No. 1125, or the Court of Tax Appeals Charter, provides a
    30-day period of appeal either from receipt of the Commissioner's adverse decision or from the lapse of the
    period fixed by law for action. The Commissioner's inaction on a claim for refund is considered a "denial" of the
    claim, which may be appealed before the CTA within 30 days from the expiration of the period fixed by law for
    action.

    Since petitioner filed its judicial claims way beyond the 30-day period to appeal, the CTA lost its jurisdiction over
    the Petitions.

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