2. Mindanao II Geothermal Partnership vs. Cir Full

7/23/2019 2. Mindanao II Geothermal Partnership vs. Cir Full

http://slidepdf.com/reader/full/2-mindanao-ii-geothermal-partnership-vs-cir-full 1/24



G.R. No. 193301(indanao II v. CIR

#e 5a$ts

G.R. No. 193301 $overs t#ree C 5irst Division $ases, C Case Nos. 6%%6, 6%)6, and 6316,#i$# ere $onso!idated as C E/ No. 213. C Case Nos. 6%%6, 6%)6, and 6316 $!ai& a taxref'nd or $redit of (indanao II7s a!!e"ed ex$ess or 'n'ti!ied inp't taxes d'e to : ero-ratedsa!es. In C Case No. 6%%6, (indanao II $!ai&s a tax ref'nd or $redit of P3,140,9).49 for t#efirst 8'arter of %003. In C Case No. 6%)6, (indanao II $!ai&s a tax ref'nd or $reditof P1,24%,0)2.33 for t#e se$ond 8'arter of %003. In C Case No. 6316, (indanao II $!ai&s atax ref'nd or $redit of P3,2%1,1%9.20 for t#e t#ird and fo'rt# 8'arters of %003.

#e C 5irst Division7s narration of t#e pertinent fa$ts is as fo!!os>

x x x x

On (ar$# 11, 1996, ?(indanao II@ a!!e"ed!+ entered into a /'i!t si$-Operate-ransfer /O$ontra$t it# t#e P#i!ippine Nationa! Oi! Corporation A Ener"+ Deve!op&ent Co&pan+ PNOC-EDC for finan$e, en"ineerin", s'pp!+, insta!!ation, testin", $o&&issionin", operation, and&aintenan$e of a ).%2 &e"aatt "eot#er&a! poer p!ant, provided t#at PNOC-EDC s#a!!s'pp!+ and de!iver stea& to (indanao II at no $ost. In t'rn, (indanao II s#a!! $onvert t#e stea&into e!e$tri$ $apa$it+ and ener"+ for PNOC-EDC and s#a!! de!iver t#e sa&e to t#e Nationa!Poer Corporation NPC for and in e#a!f of PNOC-EDC. (indanao II a!!e"es t#at its sa!e of"enerated poer and de!iver+ of e!e$tri$ $apa$it+ and ener"+ of (indanao II to NPC for and ine#a!f of PNOC-EDC is its on!+ reven'e-"eneratin" a$tivit+ #i$# is in t#e a&it of : ero-rated sa!es 'nder t#e EPIR Ba, x x x.

x x x x

en$e, t#e a&end&ent of t#e NIRC of 1996 &odified t#e : rate app!i$a!e to sa!es of"enerated poer + "eneration $o&panies fro& ten 10 per$ent to ero 0 per$ent.

In t#e $o'rse of its operation, (indanao II &a;es do&esti$ p'r$#ases of "oods and servi$esand a$$'&'!ates t#erefro& $redita!e inp't taxes. P'rs'ant to t#e provisions of t#e Nationa!Interna! Reven'e Code NIRC, (indanao II a!!e"es t#at it $an 'se its a$$'&'!ated inp't tax$redits to offset its o'tp't tax !iai!it+. Considerin", #oever t#at its on!+ reven'e-"eneratin"a$tivit+ is : ero-rated 'nder R No. 9134, (indanao II7s inp't tax $redits re&ain 'n'ti!ied.

#'s, on t#e e!ief t#at its sa!es 8'a!if+ for : ero-ratin", (indanao II adopted t#e : ero-ratin" of t#e EPIR in $o&p'tin" for its : pa+a!e #en it fi!ed its 'arter!+ : Ret'rns on

t#e fo!!oin" dates>

C Case No. Period Covered%003

Date of 5i!in"

Ori"ina! Ret'rn &ended Ret'rn

6%%6 1st 'arter pri! %3, %003 *'!+ 3, %00% si$, pri! 1, %00 F

O$toer %%, %00



6%)6 %nd 'arter *'!+ %%, %003 pri! 1, %00

6316 3rd 'arter O$t. %6, %003 pri! 1, %00

6316 t# 'arter *an. %4, %00 pri! 1, %%0

Considerin" t#at it #as a$$'&'!ated 'n'ti!ied $redita!e inp't taxes fro& its on!+ in$o&e-"eneratin" a$tivit+, (indanao II fi!ed an app!i$ation for ref'nd and=or iss'an$e of tax $redit$ertifi$ate it# t#e /IR7s Reven'e Distri$t Offi$e at idapaan Cit+ on pri! 13, %002 for t#e fo'r 8'arters of %003.

o date Septe&er %%, %00), t#e app!i$ation for ref'nd + (indanao II re&ains 'na$ted 'pon+ t#e CIR. en$e, t#ese t#ree petitions fi!ed on pri! %%, %002 $overin" t#e 1st 8'arter of %003H*'!+ 6, %002 for t#e %nd 8'arter of %003H and Septe&er 9, %002 for t#e 3rd and t# 8'arters of%003. t t#e instan$e of (indanao II, t#ese petitions ere $onso!idated on (ar$# 12, %004 ast#e+ invo!ve t#e sa&e parties and t#e sa&e s'<e$t &atter. #e on!+ differen$e !ies it# t#etaxa!e periods invo!ved in ea$# petition.11

#e Co'rt of ax ppea!s7 R'!in"> Division

In its %% Septe&er %00) De$ision,1% t#e C 5irst Division fo'nd t#at (indanao II satisfied t#etin re8'ire&ents for : ero ratin" 'nder EPIR> 1 it is a "eneration $o&pan+, and % itderived sa!es fro& poer "eneration. #e C 5irst Division a!so stated t#at (indanao II$o&p!ied it# five re8'ire&ents to e entit!ed to a ref'nd>

1. #ere &'st e ero-rated or effe$tive!+ ero-rated sa!esH

%. #at inp't taxes ere in$'rred or paidH

3. #at s'$# inp't : pa+&ents are dire$t!+ attri'ta!e to ero-rated sa!es oreffe$tive!+ ero-rated sa!esH

. #at t#e inp't : pa+&ents ere not app!ied a"ainst an+ o'tp't : !iai!it+H and

2. #at t#e $!ai& for ref'nd as fi!ed it#in t#e to-+ear pres$riptive period. 13

it# respe$t to t#e fift# re8'ire&ent, t#e C 5irst Division ta'!ated t#e dates of fi!in" of(indanao II7s ret'rn as e!! as its ad&inistrative and <'di$ia! $!ai&s, and $on$!'ded t#at(indanao II7s ad&inistrative and <'di$ia! $!ai&s ere ti&e!+ fi!ed in $o&p!ian$e it# t#is Co'rt7sr'!in" in t!as Conso!idated (inin" and Deve!op&ent Corporation v. Co&&issioner of Interna!Reven'e t!as.1 #e C 5irst Division de$!ared t#at t#e to-+ear pres$riptive period for fi!in"

a : ref'nd $!ai& s#o'!d not e $o'nted fro& t#e $!ose of t#e 8'arter 't fro& t#e date of t#efi!in" of t#e : ret'rn. s r'!ed in t!as, : !iai!it+ or entit!e&ent to a ref'nd $an on!+ edeter&ined 'pon t#e fi!in" of t#e 8'arter!+ : ret'rn.

CCaseNo.

PeriodCovered%003

Date 5i!in"

Ori"ina!Ret'rn

&endedRet'rn

d&inistrativeRet'rn

*'di$ia!C!ai&

http://www.lawphil.net/judjuris/juri2013/mar2013/gr_193301_2013.html#fnt11











6%%6 1st'arter

%3 pri!%003

1 pri!%00

13 pri! %002 %% pri!%002

6%)6 %nd'arter

%% *'!+%003

1 pri!%00

13 pri! %002 6 *'!+ %002

6316 3rd'arter %2 O$t.%003 1 pri!%00 13 pri! %002 9 Sept.%002

6316 t#'arter

%4 *an.%00

1 pri!%00

13 pri! %002 9 Sept.%00212

#'s, $o'ntin" fro& %3 pri! %003, %% *'!+ %003, %2 O$toer %003, and %4 *an'ar+ %00, #en(indanao II fi!ed its : ret'rns, its ad&inistrative $!ai& fi!ed on 13 pri! %002 and <'di$ia!$!ai&s fi!ed on %% pri! %002, 6 *'!+ %002, and 9 Septe&er %002 ere ti&e!+ fi!ed ina$$ordan$e it# t!as.

#e C 5irst Division fo'nd t#at (indanao II is entit!ed to a ref'nd in t#e &odified a&o'nt

of P6,603,926.69, after disa!!oin" P2%%,029.91 fro& inp't :

14

and ded'$tin" P1),1)1.)%fro& (indanao II7s sa!e of a f'!!+ depre$iated P%00,000.00 Nissan Patro!. #e inp't taxesa&o'ntin" to P2%%,029.91 ere disa!!oed for fai!'re to &eet invoi$in" re8'ire&ents, #i!e t#einp't : on t#e sa!e of t#e Nissan Patro! as red'$ed + P1),1)1.)% e$a'se t#e o'tp't :for t#e sa!e as not in$!'ded in t#e : de$!arations.

#e dispositive portion of t#e C 5irst Division7s %% Septe&er %00) De$ision reads>

ERE5ORE, t#e Petition for Revie is #ere+ PRIBBJ GRNED. $$ordin"!+, t#e CIRis #ere+ ORDERED to RE5KND or to ISSKE L CREDI CERI5ICE in t#e &odifieda&o'nt of SE:EN (IBBION SE:EN KNDRED REE OKSND NINE KNDRED 5I5JSE:EN ND 69=100 PESOS P6,603,926.69 representin" its 'n'ti!ied inp't : for t#e fo'r

8'arters of t#e taxa!e +ear %003.

SO ORDERED.16

(indanao II fi!ed a &otion for partia! re$onsideration.1) It stated t#at t#e sa!e of t#e f'!!+depre$iated Nissan Patro! is a one-ti&e transa$tion and is not in$identa! to its : ero-ratedoperations. (oreover, t#e disa!!oed inp't taxes s'stantia!!+ $o&p!ied it# t#e re8'ire&entsfor ref'nd or tax $redit.

#e CIR a!so fi!ed a &otion for partia! re$onsideration. It ar"'ed t#at t#e <'di$ia! $!ai&s for t#efirst and se$ond 8'arters of %003 ere fi!ed e+ond t#e period a!!oed + !a, as stated inSe$tion 11% of t#e 1996 ax Code. #e CIR f'rt#er stated t#at Se$tion %%9 is a "enera!

provision, and "overns $ases not $overed + Se$tion 11%. #e CIR $o'ntered t#e C 5irstDivision7s %% Septe&er %00) de$ision + $itin" t#is Co'rt7s r'!in" in Co&&isioner of Interna!Reven'e v. (irant Pa"i!ao Corporation (irant,19 #i$# stated t#at 'n'ti!ied inp't :pa+&ents &'st e $!ai&ed it#in to +ears re$;oned fro& t#e $!ose of t#e taxa!e 8'arter#en t#e re!evant sa!es ere &ade re"ard!ess of #et#er said tax as paid.

#e C 5irst Division denied (indanao II7s &otion for partia! re$onsideration, fo'nd t#e CIR7s&otion for partia! re$onsideration part!+ &eritorio's, and rendered an &ended De$ision%0 on %4*'ne %009. #e C 5irst Division stated t#at t#e $!ai& for ref'nd or $redit it# t#e /IR and t#e
















s'se8'ent appea! to t#e C &'st e fi!ed it#in t#e to-+ear period pres$ried 'nder Se$tion%%9. #e to-+ear pres$riptive period in Se$tion %%9 as deno&inated as a &andator+ stat'teof !i&itations. #erefore, (indanao II7s $!ai&s for ref'nd for t#e first and se$ond 8'arters of%003 #ad a!read+ pres$ried.

#e C 5irst Division fo'nd t#at t#e re$ords of (indanao II7s $ase are ereft of eviden$e t#at

t#e sa!e of t#e Nissan Patro! is not in$identa! to (indanao II7s : ero-rated operations.(oreover, (indanao II7s s'&itted do$'&ents fai!ed to s'stantiate t#e re8'isites for t#e ref'ndor $redit $!ai&s.

#e C 5irst Division &odified its %% Septe&er %00) De$ision to read as fo!!os>

ERE5ORE, t#e Petition for Revie is #ere+ PRIBBJ GRNED. $$ordin"!+, t#e CIRis #ere+ ORDERED to RE5KND or to ISSKE L CREDI CERI5ICE to (indanao IIGeot#er&a! Partners#ip in t#e &odified a&o'nt of O (IBBION NINE KNDRED EIGJOKSND EIG KNDRED EIGJ SE:EN ND 66=100 PESOS P%,9)0,))6.66representin" its 'n'ti!ied inp't : for t#e t#ird and fo'rt# 8'arters of t#e taxa!e +ear %003.

SO ORDERED.%1

(indanao II fi!ed a Petition for Revie,%% do$;eted as C E/ No. 213, efore t#e C En /an$.

#e Co'rt of ax ppea!s7 R'!in"> En /an$

On 10 (ar$# %010, t#e C En /an$ rendered its De$ision %3 in C E/ No. 213 and denied(indanao II7s petition. #e C En /an$ r'!ed t#at 1 Se$tion 11% $!ear!+ provides t#at t#ere$;onin" of t#e to-+ear pres$riptive period for fi!in" t#e app!i$ation for ref'nd or $redit of inp't: attri'ta!e to ero-rated sa!es or effe$tive!+ ero-rated sa!es s#a!! e $o'nted fro& t#e$!ose of t#e taxa!e 8'arter #en t#e sa!es ere &adeH % t#e t!as and (irant $ases app!ied

different tax $odes> t!as app!ied t#e 1966 ax Code #i!e (irant app!ied t#e 1996 ax CodeH3 t#e sa!e of t#e f'!!+-depre$iated Nissan Patro! is in$identa! to (indanao II7s : ero-ratedtransa$tions p'rs'ant to Se$tion 102H (indanao II fai!ed to $o&p!+ it# t#e s'stantiationre8'ire&ents provided 'nder Se$tion 113 in re!ation to Se$tion %36 of t#e 1996 ax Code asi&p!e&ented + Se$tion .10-1, .10-2, and .10)-1 of Reven'e Re"'!ation No. 6-92H and 2t#e do$trine of stri$tissi&i <'ris on tax exe&ptions $annot e re!axed in t#e present $ase.

#e dispositive portion of t#e C En /an$7s 10 (ar$# %010 De$ision reads>

ERE5ORE, on t#e asis of t#e fore"oin" $onsiderations, t#e Petition for Revie en an$ isDIS(ISSED for !a$; of &erit. $$ordin"!+, t#e De$ision dated Septe&er %%, %00) and t#e

&ended De$ision dated *'ne %4, %009 iss'ed + t#e 5irst Division are 55IR(ED.

SO ORDERED.%

#e C En /an$ iss'ed a Reso!'tion%2 on %) *'!+ %010 den+in" for !a$; of &erit (indanao II7s(otion for Re$onsideration.%4 #e C En /an$ #i"#!i"#ted t#e fo!!oin" ases of t#eir previo'sr'!in">

















1. #e S'pre&e Co'rt #as !on" de$ided t#at t#e $!ai& for ref'nd of 'n'ti!ied inp't :&'st e fi!ed it#in to % +ears after t#e $!ose of t#e taxa!e 8'arter #en s'$# sa!esere &ade.

%. #e S'pre&e Co'rt is t#e '!ti&ate ariter #ose de$isions a!! ot#er $o'rts s#o'!dta;e earin"s.

3. #e ords of t#e !a are $!ear, p!ain, and free fro& a&i"'it+H #en$e, it &'st e "ivenits !itera! &eanin" and app!ied it#o't an+ interpretation.%6

G.R. No. 19436(indanao I v. CIR

#e 5a$ts

G.R. No. 19436 $overs to $ases $onso!idated + t#e C E/> C E/ Case Nos. 64 and)3. /ot# C E/ $ases $onso!idate t#ree $ases fro& t#e C Se$ond Division> C Case

Nos. 6%%), 6%)4, and 631). C Case Nos. 6%%), 6%)4, and 631) $!ai& a tax ref'nd or $reditof (indanao I7s a$$'&'!ated 'n'ti!ied and=or ex$ess inp't taxes d'e to : ero-rated sa!es.In C Case No. 6%%), (indanao I $!ai&s a tax ref'nd or $redit ofP3,)93,244.1 for t#e first8'arter of %003. In C Case No. 6%)4, (indanao I $!ai&s a tax ref'nd or $reditofP%,321,000.)3 for t#e se$ond 8'arter of %003. In C Case No. 631), (indanao I $!ai&s atax ref'nd or $redit ofP6,90,6%6.)3 for t#e t#ird and fo'rt# 8'arters of %003.

(indanao I is si&i!ar!+ sit'ated as (indanao II. #e C Se$ond Division7s narration of t#epertinent fa$ts is as fo!!os>

x x x x

In De$e&er 199, (indanao I entered into a $ontra$t of /'i!d-Operate-ransfer /O it# t#eP#i!ippine Nationa! Oi! Corporation A Ener"+ Deve!op&ent Corporation PNOC-EDC for t#efinan$e, desi"n, $onstr'$tion, testin", $o&&issionin", operation, &aintenan$e and repair of a6-&e"aatt "eot#er&a! poer p!ant. Knder t#e said /O $ontra$t, PNOC-EDC s#a!! s'pp!+and de!iver stea& to (indanao I at no $ost. In t'rn, (indanao I i!! $onvert t#e stea& intoe!e$tri$ $apa$it+ and ener"+ for PNOC-EDC and s#a!! s'se8'ent!+ s'pp!+ and de!iver t#esa&e to t#e Nationa! Poer Corporation NPC, for and in e#a!f of PNOC-EDC.

(indanao I7s 6-&e"aatt "eot#er&a! poer p!ant pro<e$t #as een a$$redited + t#eDepart&ent of Ener"+ DOE as a Private Se$tor Generation 5a$i!it+, p'rs'ant to t#e provisionof Exe$'tive Order No. %12, #erein Certifi$ate of $$reditation No. 92-036 as iss'ed.

On *'ne %4, %001, Rep'!i$ $t R.. No. 9134 too; effe$t, and t#e re!evant provisions of t#eNationa! Interna! Reven'e Code NIRC of 1996 ere dee&ed &odified. R.. No. 9134, a!so;non as t#e ME!e$tri$ Poer Ind'str+ Refor& $t of %001 EPIR, as ena$ted + Con"ressto ordain refor&s in t#e e!e$tri$ poer ind'str+, #i"#!i"#tin", a&on" ot#ers, t#e i&portan$e ofens'rin" t#e re!iai!it+, se$'rit+ and affordai!it+ of t#e s'pp!+ of e!e$tri$ poer to end 'sers.Knder t#e provisions of t#is Rep'!i$ $t and its i&p!e&entin" r'!es and re"'!ations, t#ede!iver+ and s'pp!+ of e!e$tri$ ener"+ + "eneration $o&panies e$a&e : ero-rated, #i$#previo's!+ ere s'<e$t to ten per$ent 10 :.






x x x x

#e a&end&ent of t#e NIRC of 1996 &odified t#e : rate app!i$a!e to sa!es of "eneratedpoer + "eneration $o&panies fro& ten 10 per$ent to ero per$ent 0. #'s, (indanao Iadopted t#e : ero-ratin" of t#e EPIR in $o&p'tin" for its : pa+a!e #en it fi!ed its :Ret'rns, on t#e e!ief t#at its sa!es 8'a!if+ for : ero-ratin".

(indanao I reported its 'n'ti!ied or ex$ess $redita!e inp't taxes in its 'arter!+ : Ret'rnsfor t#e first, se$ond, t#ird, and fo'rt# 8'arters of taxa!e +ear %003, #i$# ere s'se8'ent!+a&ended and fi!ed it# t#e /IR.

On pri! , %002, (indanao I fi!ed it# t#e /IR separate ad&inistrative $!ai&s for t#e iss'an$eof tax $redit $ertifi$ate on its a!!e"ed 'n'ti!ied or ex$ess inp't taxes for taxa!e +ear %003, int#e a$$'&'!ated a&o'nt ofP1,1)2, %9.)0.

!!e"in" ina$tion on t#e part of CIR, (indanao I e!evated its $!ai&s efore t#is Co'rt on pri! %%,%002, *'!+ 6, %002, and Septe&er 9, %002 do$;eted as C Case Nos. 6%%), 6%)4, and 631),respe$tive!+. oever, on O$toer 10, %002, (indanao I re$eived a $op+ of t#e !etter datedSepte&er 30, %003 si$ of t#e /IR den+in" its app!i$ation for tax $redit=ref'nd. %)

#e Co'rt of ax ppea!s7 R'!in"> Division

On % O$toer %00), t#e C Se$ond Division rendered its De$ision%9 in C Case Nos. 6%%),6%)4, and 631). #e C Se$ond Division fo'nd t#at 1 p'rs'ant to Se$tion 11%, (indanaoI $an on!+ $!ai& 90.%6 of t#e a&o'nt of s'stantiated ex$ess inp't : e$a'se a portion asnot reported in its 8'arter!+ : ret'rnsH % o't of t#e P1,1)2,%9.)0 ex$ess inp't : app!iedfor ref'nd, on!+ P11,426,6.1 $an e $onsidered s'stantiated ex$ess inp't : d'e todisa!!oan$es + t#e Independent Certified P'!i$ $$o'ntant, ad<'st&ent on t#e disa!!oan$esper t#e C Se$ond Division7s f'rt#er verifi$ation, and additiona! disa!!oan$es per t#e C

Se$ond Division7s f'rt#er verifi$ationH

3 (indanao I7s a$$'&'!ated ex$ess inp't : for t#e se$ond 8'arter of %003 t#at as $arriedover to t#e t#ird 8'arter of %003 is net of t#e $!ai&ed inp't : for t#e first 8'arter of %003, andt#e sa&e pro$ed're as done for t#e se$ond, t#ird, and fo'rt# 8'arters of %003H and (indanao I7s ad&inistrative $!ai&s ere fi!ed it#in t#e to-+ear pres$riptive period re$;onedfro& t#e respe$tive dates of fi!in" of t#e 8'arter!+ : ret'rns.

#e dispositive portion of t#e C Se$ond Division7s % O$toer %00) De$ision reads>

ERE5ORE, pre&ises $onsidered, t#e $onso!idated Petitions for Revie are #ere+PRIBBJ GRNED. $$ordin"!+, t#e CIR is #ere+ ORDERED O ISSKE L CREDI

CERI5ICE in favor of (indanao I in t#e red'$ed a&o'nt of EN (IBBION 5I:E KNDREDENJ REE OKSND ONE KNDRED SE:ENJ SE:EN PESOS ND 23=100P10,2%3,166.23 representin" (indanao I7s 'n'ti!ied inp't : for t#e fo'r 8'arters of t#etaxa!e +ear %003.

SO ORDERED.30

(indanao I fi!ed a &otion for partia! re$onsideration it# &otion for C!arifi$ation31 on 11Nove&er %00). It $!ai&ed t#at t#e C Se$ond Division s#o'!d not #ave a!!o$ated












proportionate!+ (indanao I7s 'n'ti!ied $redita!e inp't taxes for t#e taxa!e +ear %003, e$a'set#e proportionate a!!o$ation of t#e a&o'nt of $redita!e taxes in Se$tion 11% app!ies on!+#en t#e $redita!e inp't taxes d'e $annot e dire$t!+ and entire!+ attri'ted to an+ of t#e ero-rated or effe$tive!+ ero-rated sa!es. (indanao I $!ai&s t#at its 'nreported $o!!e$tion is dire$t!+attri'ta!e to its : ero-rated sa!es. #e C Se$ond Division denied (indanao I7s &otionand &aintained t#e proportionate a!!o$ation e$a'se t#ere as a portion of t#e "ross re$eipts

t#at as 'nde$!ared in (indanao I7s "ross re$eipts.

#e CIR a!so fi!ed a &otion for partia! re$onsideration 3% on 11 Nove&er %00). It $!ai&ed t#at(indanao I fai!ed to ex#a'st ad&inistrative re&edies efore it fi!ed its petition for revie. #eC Se$ond Division denied t#e CIR7s &otion, and $ited t!as33 as t#e asis for r'!in" t#at it is&ore pra$ti$a! and reasona!e to $o'nt t#e to-+ear pres$riptive period for fi!in" a $!ai& forref'nd or $redit of inp't : on ero-rated sa!es fro& t#e date of fi!in" of t#e ret'rn and pa+&entof t#e tax d'e.

#e dispositive portion of t#e C Se$ond Division7s 10 (ar$# %009 Reso!'tion reads>

ERE5ORE, pre&ises $onsidered, t#e CIR7s (otion for Partia! Re$onsideration and(indanao I7s (otion for Partia! Re$onsideration it# (otion for C!arifi$ation are #ere+ DENIEDfor !a$; of &erit.

SO ORDERED.3

#e R'!in" of t#e Co'rt of ax ppea!s> En /an$

On 31 (a+ %010, t#e C En /an$ rendered its De$ision32 in C E/ Case Nos. 64 and )3and denied t#e petitions fi!ed + t#e CIR and (indanao I. #e C En /an$ fo'nd no ne&atters #i$# #ave not +et een $onsidered and passed 'pon + t#e C Se$ond Division in itsassai!ed de$ision and reso!'tion.

#e dispositive portion of t#e C En /an$7s 31 (a+ %010 De$ision reads>

ERE5ORE, pre&ises $onsidered, t#e Petitions for Revie are #ere+ DIS(ISSED for !a$;of &erit. $$ordin"!+, t#e O$toer %, %00) De$ision and (ar$# 10, %009 Reso!'tion of t#e C5or&er Se$ond Division in C Case Nos. 6%%), 6%)4, and 631), entit!ed M(indanao IGeot#er&a! Partners#ip vs. Co&&issioner of Interna! Reven'eM are #ere+ 55IR(ED in toto.

SO ORDERED.34

/ot# t#e CIR and (indanao I fi!ed (otions for Re$onsideration of t#e C En /an$7s 31 (a+%010 De$ision. In an &ended De$ision pro&'!"ated on % Nove&er %010, t#e C En /an$

a"reed it# t#e CIR7s $!ai& t#at Se$tion %%9 of t#e NIRC of 1996 is inapp!i$a!e in !i"#t of t#isCo'rt7s r'!in" in (irant. #e C En /an$ a!so r'!ed t#at t#e pro$ed're pres$ried 'nderSe$tion 11%D no 11%C36 of t#e 1996 ax Code s#o'!d e fo!!oed first efore t#e C En/an$ $an a$t on (indanao I7s $!ai&. #e C En /an$ re$onsidered its 31 (a+ %010 De$isionin !i"#t of t#is Co'rt7s r'!in" in Co&&issioner of Interna! Reven'e v. i$#i 5or"in" Co&pan+ of

sia, In$. i$#i.3)

#e pertinent portions of t#e C En /an$7s % Nove&er %010 &ended De$ision read>


















C... Case No. 6%%)>

1 5or $a!endar +ear %003, (indanao I fi!ed it# t#e /IR its 'arter!+ : Ret'rns fort#e 5irst 'arter of %003. P'rs'ant to Se$tion 11% of t#e NIRC of 1996, as a&ended,(indanao I #as to +ears fro& (ar$# 31, %003 or 'nti! (ar$# 31, %002 it#in #i$# tofi!e its ad&inistrative $!ai& for ref'ndH

% On pri! , %002, (indanao I app!ied for an ad&inistrative $!ai& for ref'nd of'n'ti!ied inp't : for t#e first 8'arter of taxa!e +ear %003 it# t#e /IR, #i$# ise+ond t#e to-+ear pres$riptive period &entioned aove.

C... Case No. 6%)4>

1 5or $a!endar +ear %003, (indanao I fi!ed it# t#e /IR its 'arter!+ : Ret'rns fort#e se$ond 8'arter of %003. P'rs'ant to

Se$tion 11% of t#e NIRC of 1996, as a&ended, (indanao I #as to +ears fro& *'ne

30, %003, it#in #i$# to fi!e its ad&inistrative $!ai& for ref'nd for t#e se$ond 8'arter of%003, or 'nti! *'ne 30, %002H

% On pri! , %002, (indanao I app!ied an ad&inistrative $!ai& for ref'nd of 'n'ti!iedinp't : for t#e se$ond 8'arter of taxa!e +ear %003 it# t#e /IR, #i$# is it#in t#eto-+ear pres$riptive period, provided 'nder Se$tion 11% of t#e NIRC of 1996, asa&endedH

3 #e CIR #as 1%0 da+s fro& pri! , %002 pres'&a!+ t#e date (indanao I s'&ittedt#e s'pportin" do$'&ents to"et#er it# t#e app!i$ation for ref'nd or 'nti! '"'st %,%002, to de$ide t#e ad&inistrative $!ai& for ref'ndH

it#in 30 da+s fro& t#e !apse of t#e 1%0-da+ period or fro& '"'st 3, %002 toSepte&er 1, %002, (indanao I s#o'!d #ave e!evated its $!ai& for ref'nd to t#e C inDivisionH

2 oever, on *'!+ 6, %002, (indanao I fi!ed its Petition for Revie it# t#is Co'rt,do$;eted as C Case No. 6%)4, even efore t#e 1%0-da+ period for t#e CIR to de$idet#e $!ai& for ref'nd #ad !apsed on '"'st %, %002. #e Petition for Revie as,t#erefore, pre&at're!+ fi!ed and t#ere as fai!'re to ex#a'st ad&inistrative re&ediesH

x x x x

C... Case No. 631)>

1 5or $a!endar +ear %003, (indanao I fi!ed it# t#e /IR its 'arter!+ : Ret'rns fort#e t#ird and fo'rt# 8'arters of %003. P'rs'ant to Se$tion 11% of t#e NIRC of 1996, asa&ended, (indanao I t#erefore, #as to +ears fro& Septe&er 30, %003 and De$e&er 31, %003, or 'nti! Septe&er 30, %002 and De$e&er 31, %002, respe$tive!+, it#in#i$# to fi!e its ad&inistrative $!ai& for t#e t#ird and fo'rt# 8'arters of %003H



% On pri! , %002, (indanao I app!ied an ad&inistrative $!ai& for ref'nd of 'n'ti!iedinp't : for t#e t#ird and fo'rt# 8'arters of taxa!e +ear %003 it# t#e /IR, #i$# ise!! it#in t#e to-+ear pres$riptive period, provided 'nder Se$tion 11% of t#e NIRCof 1996, as a&endedH

3 5ro& pri! , %002, #i$# is a!so pres'&a!+ t#e date (indanao I s'&itted

s'pportin" do$'&ents, to"et#er it# t#e aforesaid app!i$ation for ref'nd, t#e CIR #as1%0 da+s or 'nti! '"'st %, %002, to de$ide t#e $!ai&H

it#in t#irt+ 30 da+s fro& t#e !apse of t#e 1%0-da+ period or fro& '"'st 3, %002'nti! Septe&er 1, %002 (indanao I s#o'!d #ave e!evated its $!ai& for ref'nd to t#eCH

2 oever, (indanao I fi!ed its Petition for Revie it# t#e C in Division on!+ onSepte&er 9, %002, #i$# is ) da+s e+ond t#e 30-da+ period to appea! to t#e C.

Evident!+, t#e Petition for Revie as fi!ed a+ e+ond t#e 30-da+ pres$ried period. #'s, t#ePetition for Revie s#o'!d #ave een dis&issed for ein" fi!ed !ate.

In re$apit'!ation>

1 C... Case No. 6%%)

C!ai& for t#e first 8'arter of %003 #ad a!read+ pres$ried for #avin" een fi!ed e+ondt#e to-+ear pres$riptive periodH

% C... Case No. 6%)4

C!ai& for t#e se$ond 8'arter of %003 s#o'!d e dis&issed for (indanao I7s fai!'re to

$o&p!+ it# a $ondition pre$edent #en it fai!ed to ex#a'st ad&inistrative re&edies +fi!in" its Petition for Revie even efore t#e !apse of t#e 1%0-da+ period for t#e CIR tode$ide t#e ad&inistrative $!ai&H

3 C... Case No. 631)

Petition for Revie as fi!ed e+ond t#e 30-da+ pres$ried period to appea! to t#e C.

x x x x

IN :IE O5 E 5OREGOING, t#e Co&&issioner of Interna! Reven'e7s (otion forRe$onsideration is #ere+ GRNEDH (indanao I7s (otion for Partia! Re$onsideration is

#ere+ DENIED for !a$; of &erit.

#e (a+ 31, %010 De$ision of t#is Co'rt En /an$ is #ere+ RE:ERSED.

$$ordin"!+, t#e Petition for Revie of t#e Co&&issioner of Interna! Reven'e in C E/ No.64 is #ere+ GRNED and t#e entire $!ai& of (indanao I Geot#er&a! Partners#ip for t#efirst, se$ond, t#ird and fo'rt# 8'arters of %003 is #ere+ DENIED.





I. #e ad&inistrative $!ai& and <'di$ia! $!ai& in C Case No. 6%%) ere ti&e!+ fi!edp'rs'ant to t#e $ase of t!as Conso!idated (inin" and Deve!op&ent Corporation vs.Co&&issioner of Interna! Reven'e, #i$# as t#en t#e $ontro!!in" r'!in" at t#e ti&e offi!in".

. #e re$ent r'!in" in t#e Co&&issioner of Interna! Reven'e vs. (irant Pa"i!ao

Corporation, #i$# 'ses t#e end of t#e taxa!e 8'arter #en t#e sa!es ere&ade as t#e re$;onin" date in $o'ntin" t#e to-+ear pres$riptive period, $annote app!ied retroa$tive!+ in t#e $ase of (indanao I.

/. #e t!as $ase pro&'!"ated + t#e #ird Division of t#is onora!e Co'rt on*'ne ), %006 as not and $annot e s'perseded + t#e (irant Pa"i!ao $asepro&'!"ated + t#e Se$ond Division of t#is onora!e Co'rt on Septe&er 1%,%00) in !i"#t of t#e exp!i$it provision of Se$tion 3, rti$!e :III of t#e 19)6Constit'tion.

II. Bi;eise, t#e re$ent r'!in" of t#is onora!e Co'rt in Co&&issioner of Interna!Reven'e vs. i$#i 5or"in" Co&pan+ of sia, In$., $annot e app!ied retroa$tive!+ to(indanao I in t#e present $ase.1

In a Reso!'tion dated 1 De$e&er %011,% t#is Co'rt reso!ved to $onso!idate G.R. Nos. 193301and 19436 to avoid $onf!i$tin" r'!in"s in re!ated $ases.

#e Co'rt7s R'!in"

Deter&ination of Pres$riptive Period

G.R. Nos. 193301 and 19436 ot# raise t#e 8'estion of t#e deter&ination of t#e pres$riptiveperiod, or t#e interpretation of Se$tion 11% of t#e 1996 ax Code, in !i"#t of o'r r'!in"s in t!as

and (irant.

(indanao II7s 'n'ti!ied inp't : tax $redit for t#e first and se$ond 8'arters of %003, in t#ea&o'nts ofP3,140,9).49 and P1,24%,0)2.33, respe$tive!+, are $overed + G.R. No. 193301,#i!e (indanao I7s 'n'ti!ied inp't : tax $redit for t#e first, se$ond, t#ird, and fo'rt# 8'artersof %003, in t#e a&o'nts of P3,)93,244.1,P%,321,000.)3, and P6,90,6%6.)3, respe$tive!+, are$overed + G.R. No. 19436.

Se$tion 11% of t#e 1996 ax Code

#e pertinent se$tions of t#e 1996 ax Code, t#e !a app!i$a!e at t#e ti&e of (indanao II7s and(indanao I7s ad&inistrative and <'di$ia! $!ai&s, provide>

SEC. 11%. Ref'nds or ax Credits of Inp't ax. - ero-rated or Effe$tive!+ ero-rated Sa!es. - n+ :-re"istered person, #ose sa!es are ero-rated or effe$tive!+ ero-rated &a+, it#in to% +ears after t#e $!ose of t#e taxa!e 8'arter #en t#e sa!es ere &ade, app!+ for t#eiss'an$e of a tax $redit $ertifi$ate or ref'nd of $redita!e inp't tax d'e or paid attri'ta!e tos'$# sa!es, ex$ept transitiona! inp't tax, to t#e extent t#at s'$# inp't tax #as not een app!ieda"ainst o'tp't tax> Provided, #oever, #at in t#e $ase of ero-rated sa!es 'nder Se$tion104%a1, % and / and Se$tion 10) /1 and %, t#e a$$epta!e forei"n $'rren$+ex$#an"e pro$eeds t#ereof #ad een d'!+ a$$o'nted for in a$$ordan$e it# t#e r'!es and








re"'!ations of t#e /an";o Sentra! n" Pi!ipinas /SP> Provided, f'rt#er, #at #ere t#e taxpa+er is en"a"ed in ero-rated or effe$tive!+ ero-rated sa!e and a!so in taxa!e or exe&pt sa!e of"oods or properties or servi$es, and t#e a&o'nt of $redita!e inp't tax d'e or paid $annot edire$t!+ and entire!+ attri'ted to an+ one of t#e transa$tions, it s#a!! e a!!o$ated proportionate!+on t#e asis of t#e vo!'&e of sa!es.

x x x x

D Period it#in #i$# Ref'nd or ax Credit of Inp't axes s#a!! e (ade. - In proper $ases,t#e Co&&issioner s#a!! "rant a ref'nd or iss'e t#e tax $redit $ertifi$ate for $redita!e inp't taxesit#in one #'ndred tent+ 1%0 da+s fro& t#e date of s'&ission of $o&p!ete do$'&ents ins'pport of t#e app!i$ation fi!ed in a$$ordan$e it# S'se$tions and / #ereof.

In $ase of f'!! or partia! denia! of t#e $!ai& for tax ref'nd or tax $redit, or t#e fai!'re on t#e part of t#e Co&&issioner to a$t on t#e app!i$ation it#in t#e period pres$ried aove, t#e taxpa+eraffe$ted &a+, it#in t#irt+ 30 da+s fro& t#e re$eipt of t#e de$ision den+in" t#e $!ai& or aftert#e expiration of t#e one #'ndred tent+ da+-period, appea! t#e de$ision or t#e 'na$ted $!ai&it# t#e Co'rt of ax ppea!s.

x x x x 3 Knders$orin" s'pp!ied

#e re!evant dates for G.R. No. 193301 (indanao II are>

CCaseNo.

Period$overed +

: Sa!es in%003 anda&o'nt

C!ose of 8'arter #ensa!esere&ade

Bast da+for fi!in"

app!i$ationof tax

ref'nd=tax$redit

$ertifi$ateit# t#e

CIR

$t'a! date of fi!in"

app!i$ation for tax ref'nd=

$redit it# t#eCIR

ad&inistrative$!ai&

Bast da+ for fi!in" $aseit# C2

$t'a!Date

of fi!in"$ase

it# C<'di$ia!

$!ai&

6%%6 1st 'arter,P3,140,9).49

31 (ar$#%003

31 (ar$#%002

13 pri! %002 1%Septe&er %002

%% pri!%002

6%)6 %nd 'arter,P1,24%,0)2.33

30 *'ne%003

30 *'ne%002

13 pri! %002 1%Septe&er %002

6 *'!+ %002

6316 3rd and t#

'arters,P3,2%1,1%9.20

30

Septe&er %003

30

Septe&er %002

13 pri! %002 1%

Septe&er %002

9

Septe&er %002

31De$e&er %003

% *an'ar+%00431De$e&er %002 ein"a









Sat'rda+

#e re!evant dates for G.R. No. 19436 (inadanao I are>

C

CaseNo.

Period

$overed +: Sa!es in%003 anda&o'nt

C!ose of

8'arter #ensa!esere&ade

Bast da+

for fi!in"app!i$ationof taxref'nd=tax$redit$ertifi$ateit# t#eCIR

$t'a! date of

fi!in"app!i$ation for tax ref'nd=$redit it# t#eCIRad&inistrative$!ai&4

Bast da+ for

fi!in" $aseit# C6

$t'a! Date

of fi!in"$aseit# C<'di$ia!$!ai&

6%%6 1st 'arter,P3,)93,244.1

31 (ar$#%003

31 (ar$#%002

pri! %002 1Septe&er %002

%% pri!%002

6%)6 %nd 'arter,P%,321,000.)3

30 *'ne%003

30 *'ne%002


6 *'!+ %002

6316 3rdand t#'arters,P6,90,6%6.)3

30Septe&er %003

30Septe&er %002


9Septe&er %002

31De$e&er %003

% *an'ar+%00431De$e&er %002 ein"aSat'rda+

#en (indanao II and (indanao I fi!ed t#eir respe$tive ad&inistrative and <'di$ia! $!ai&s in%002, neit#er t!as nor (irant #as een pro&'!"ated. t!as as pro&'!"ated on ) *'ne %006,#i!e (irant as pro&'!"ated on 1% Septe&er %00). It is t#erefore &is!eadin" to state t#at

t!as as t#e $ontro!!in" do$trine at t#e ti&e of fi!in" of t#e $!ai&s. #e 1996 ax Code, #i$#too; effe$t on 1 *an'ar+ 199), as t#e app!i$a!e !a at t#e ti&e of fi!in" of t#e $!ai&s in iss'e.

s t#is Co'rt exp!ained in t#e re$ent $onso!idated $ases of Co&&issioner of Interna! Reven'ev. San Ro8'e Poer Corporation, a"anito (inin" Corporation v. Co&&issioner of Interna!Reven'e, and P#i!ex (inin" Corporation v. Co&&issioner of Interna! Reven'e San Ro8'e>)

C!ear!+, San Ro8'e fai!ed to $o&p!+ it# t#e 1%0-da+ aitin" period, t#e ti&e express!+ "iven +!a to t#e Co&&issioner to de$ide #et#er to "rant or den+ San Ro8'e7s app!i$ation for taxref'nd or $redit. It is indisp'ta!e t#at $o&p!ian$e it# t#e 1%0-da+ aitin" period is &andator+and <'risdi$tiona!. #e aitin" period, ori"ina!!+ fixed at 40 da+s on!+, as part of t#e provisionsof t#e first : !a, Exe$'tive Order No. %63, #i$# too; effe$t on 1 *an'ar+ 19)). #e aitin"period as extended to 1%0 da+s effe$tive 1 *an'ar+ 199) 'nder R )% or t#e ax Refor&

$t of 1996. #'s, t#e aitin" period #as een in o'r stat'te oo;s for &ore t#an fifteen 12+ears efore San Ro8'e fi!ed its <'di$ia! $!ai&.









5ai!'re to $o&p!+ it# t#e 1%0-da+ aitin" period vio!ates a &andator+ provision of !a. Itvio!ates t#e do$trine of ex#a'stion of ad&inistrative re&edies and renders t#e petitionpre&at're and t#'s it#o't a $a'se of a$tion, it# t#e effe$t t#at t#e C does not a$8'ire

<'risdi$tion over t#e taxpa+er7s petition. P#i!ippine <'rispr'den$e is rep!ete it# $ases 'p#o!din"and reiteratin" t#ese do$trina! prin$ip!es.

#e $#arter of t#e C express!+ provides t#at its <'risdi$tion is to revie on appea! Mde$isionsof t#e Co&&issioner of Interna! Reven'e in $ases invo!vin" x x x ref'nds of interna! reven'etaxes.M #en a taxpa+er pre&at're!+ fi!es a <'di$ia! $!ai& for tax ref'nd or $redit it# t#e Cit#o't aitin" for t#e de$ision of t#e Co&&issioner, t#ere is no Mde$isionM of t#e Co&&issioner to revie and t#'s t#e C as a $o'rt of spe$ia! <'risdi$tion #as no <'risdi$tion over t#e appea!.#e $#arter of t#e C a!so express!+ provides t#at if t#e Co&&issioner fai!s to de$ide it#in Maspe$ifi$ periodM re8'ired + !a, s'$# Mina$tion s#a!! e dee&ed a denia!M of t#e app!i$ation fortax ref'nd or $redit. It is t#e Co&&issioner7s de$ision, or ina$tion Mdee&ed a denia!,M t#at t#etaxpa+er $an ta;e to t#e C for revie. it#o't a de$ision or an Mina$tion x x x dee&ed adenia!M of t#e Co&&issioner, t#e C #as no <'risdi$tion over a petition for revie.

San Ro8'e7s fai!'re to $o&p!+ it# t#e 1%0-da+ &andator+ period renders its petition for revie

it# t#e C void. rti$!e 2 of t#e Civi! Code provides, M$ts exe$'ted a"ainst provisions of&andator+ or pro#iitor+ !as s#a!! e void, ex$ept #en t#e !a itse!f a't#ories t#eir va!idit+.MSan Ro8'e7s void petition for revie $annot e !e"iti&ied + t#e C or t#is Co'rt e$a'se

rti$!e 2 of t#e Civi! Code states t#at s'$# void petition $annot e !e"iti&ied Mex$ept #en t#e!a itse!f a't#ories its va!idit+.M #ere is no !a a't#oriin" t#e petition7s va!idit+.

It is #ornoo; do$trine t#at a person $o&&ittin" a void a$t $ontrar+ to a &andator+ provision of!a $annot $!ai& or a$8'ire an+ ri"#t fro& #is void a$t. ri"#t $annot sprin" in favor of a personfro& #is on void or i!!e"a! a$t. #is do$trine is repeated in rti$!e %%2 of t#e Civi! Code, #i$#states, MNo vested or a$8'ired ri"#t $an arise fro& a$ts or o&issions #i$# are a"ainst t#e !aor #i$# infrin"e 'pon t#e ri"#ts of ot#ers.M 5or vio!atin" a &andator+ provision of !a in fi!in" itspetition it# t#e C, San Ro8'e $annot $!ai& an+ ri"#t arisin" fro& s'$# void petition. #'s,

San Ro8'e7s petition it# t#e C is a &ere s$rap of paper.

#is Co'rt $annot r's# aside t#e "rave iss'e of t#e &andator+ and <'risdi$tiona! nat're of t#e1%0-da+ period <'st e$a'se t#e Co&&issioner &ere!+ asserts t#at t#e $ase as pre&at're!+fi!ed it# t#e C and does not 8'estion t#e entit!e&ent of San Ro8'e to t#e ref'nd. #e &erefa$t t#at a taxpa+er #as 'ndisp'ted ex$ess inp't :, or t#at t#e tax as ad&itted!+ i!!e"a!!+,erroneo's!+ or ex$essive!+ $o!!e$ted fro& #i&, does not entit!e #i& as a &atter of ri"#t to a taxref'nd or $redit. Stri$t $o&p!ian$e it# t#e &andator+ and <'risdi$tiona! $onditions pres$ried +!a to $!ai& s'$# tax ref'nd or $redit is essentia! and ne$essar+ for s'$# $!ai& to prosper. e!!-sett!ed is t#e r'!e t#at tax ref'nds or $redits, <'st !i;e tax exe&ptions, are stri$t!+ $onstr'eda"ainst t#e taxpa+er.

#e 'rden is on t#e taxpa+er to s#o t#at #e #as stri$t!+ $o&p!ied it# t#e $onditions for t#e"rant of t#e tax ref'nd or $redit.

#is Co'rt $annot disre"ard &andator+ and <'risdi$tiona! $onditions &andated + !a si&p!+e$a'se t#e Co&&issioner $#ose not to $ontest t#e n'&eri$a! $orre$tness of t#e $!ai& for taxref'nd or $redit of t#e taxpa+er. Non-$o&p!ian$e it# &andator+ periods, non-oservan$e ofpres$riptive periods, and non-ad#eren$e to ex#a'stion of ad&inistrative re&edies ar ataxpa+er7s $!ai& for tax ref'nd or $redit, #et#er or not t#e Co&&issioner 8'estions t#e



n'&eri$a! $orre$tness of t#e $!ai& of t#e taxpa+er. #is Co'rt s#o'!d not esta!is# t#epre$edent t#at non-$o&p!ian$e it# &andator+ and <'risdi$tiona! $onditions $an e ex$'sed ift#e $!ai& is ot#erise &eritorio's, parti$'!ar!+ in $!ai&s for tax ref'nds or $redit. S'$# pre$edenti!! render &eanin"!ess $o&p!ian$e it# &andator+ and <'risdi$tiona! re8'ire&ents, for t#enever+ tax ref'nd $ase i!! #ave to e de$ided on t#e n'&eri$a! $orre$tness of t#e a&o'nts$!ai&ed, re"ard!ess of non-$o&p!ian$e it# &andator+ and <'risdi$tiona! $onditions.

San Ro8'e $annot a!so $!ai& ein" &is!ed, &is"'ided or $onf'sed + t#e t!as do$trinee$a'se San Ro8'e fi!ed its petition for revie it# t#e C &ore t#an fo'r +ears efore t!asas pro&'!"ated. #e t!as do$trine did not exist at t#e ti&e San Ro8'e fai!ed to $o&p!+ it#t#e 1%0-da+ period. #'s, San Ro8'e $annot invo;e t#e t!as do$trine as an ex$'se for itsfai!'re to ait for t#e 1%0-da+ period to !apse. In an+ event, t#e t!as do$trine &ere!+ stated t#att#e to-+ear pres$riptive period s#o'!d e $o'nted fro& t#e date of pa+&ent of t#e o'tp't :,not fro& t#e $!ose of t#e taxa!e 8'arter #en t#e sa!es invo!vin" t#e inp't : ere &ade. #e

t!as do$trine does not interpret, express!+ or i&p!ied!+, t#e 1%030 da+ periods.9 E&p#ases int#e ori"ina!H $itations o&itted

Pres$riptive Period for

t#e 5i!in" of d&inistrative C!ai&s

In deter&inin" #et#er t#e ad&inistrative $!ai&s of (indanao I and (indanao II for %003 #avepres$ried, e see no need to re!+ on eit#er t!as or (irant. Se$tion 11% of t#e 1996 axCode is $!ear> Mn+ :-re"istered person, #ose sa!es are ero-rated or effe$tive!+ ero-rated&a+, it#in to % +ears after t#e $!ose of t#e taxa!e 8'arter #en t#e sa!es ere &ade, app!+for t#e iss'an$e of a tax $redit $ertifi$ate or ref'nd of $redita!e inp't tax d'e or paid attri'ta!eto s'$# sa!es x x x.M

e r'!e on (indanao I and II7s ad&inistrative $!ai&s for t#e first, se$ond, t#ird, and fo'rt#8'arters of %003 as fo!!os>

1 #e !ast da+ for fi!in" an app!i$ation for tax ref'nd or $redit it# t#e CIR for t#e first8'arter of %003 as on 31 (ar$# %002. (indanao II fi!ed its ad&inistrative $!ai& eforet#e CIR on 13 pri! %002, #i!e (indanao I fi!ed its ad&inistrative $!ai& efore t#e CIRon pri! %002. /ot# $!ai&s #ave pres$ried, p'rs'ant to Se$tion 11% of t#e 1996 axCode.

% #e !ast da+ for fi!in" an app!i$ation for tax ref'nd or $redit it# t#e CIR for t#ese$ond 8'arter of %003 as on 30 *'ne %002. (indanao II fi!ed its ad&inistrative $!ai&efore t#e CIR on 13 pri! %002, #i!e (indanao I fi!ed its ad&inistrative $!ai& eforet#e CIR on pri! %002. /ot# $!ai&s ere fi!ed on ti&e, p'rs'ant to Se$tion 11% oft#e 1996 ax Code.

3 #e !ast da+ for fi!in" an app!i$ation for tax ref'nd or $redit it# t#e CIR for t#e t#ird8'arter of %003 as on 30 Septe&er %002. (indanao II fi!ed its ad&inistrative $!ai&efore t#e CIR on 13 pri! %002, #i!e (indanao I fi!ed its ad&inistrative $!ai& eforet#e CIR on pri! %002. /ot# $!ai&s ere fi!ed on ti&e, p'rs'ant to Se$tion 11% oft#e 1996 ax Code.

#e !ast da+ for fi!in" an app!i$ation for tax ref'nd or $redit it# t#e CIR for t#e fo'rt#8'arter of %003 as on % *an'ar+ %004. (indanao II fi!ed its ad&inistrative $!ai& efore






t#e CIR on 13 pri! %002, #i!e (indanao I fi!ed its ad&inistrative $!ai& efore t#e CIRon pri! %002. /ot# $!ai&s ere fi!ed on ti&e, p'rs'ant to Se$tion 11% of t#e 1996ax Code.

Pres$riptive Period for t#e 5i!in" of *'di$ia! C!ai&s

In deter&inin" #et#er t#e $!ai&s for t#e se$ond, t#ird and fo'rt# 8'arters of %003 #ave eenproper!+ appea!ed, e sti!! see no need to refer to eit#er t!as or (irant, or even to Se$tion %%9of t#e 1996 ax Code. #e se$ond para"rap# of Se$tion 11%C of t#e 1996 ax Code is $!ear>MIn $ase of f'!! or partia! denia! of t#e $!ai& for tax ref'nd or tax $redit, or t#e fai!'re on t#e partof t#e Co&&issioner to a$t on t#e app!i$ation it#in t#e period pres$ried aove, t#e taxpa+eraffe$ted &a+, it#in t#irt+ 30 da+s fro& t#e re$eipt of t#e de$ision den+in" t#e $!ai& or aftert#e expiration of t#e one #'ndred tent+ da+-period, appea! t#e de$ision or t#e 'na$ted $!ai&it# t#e Co'rt of ax ppea!s.M

#e &andator+ and <'risdi$tiona! nat're of t#e 1%030 da+ periods as exp!ained in SanRo8'e>

t t#e ti&e San Ro8'e fi!ed its petition for revie it# t#e C, t#e 1%030 da+ &andator+periods ere a!read+ in t#e !a. Se$tion 11%C express!+ "rants t#e Co&&issioner 1%0 da+sit#in #i$# to de$ide t#e taxpa+er7s $!ai&. #e !a is $!ear, p!ain, and 'ne8'ivo$a!> Mx x x t#eCo&&issioner s#a!! "rant a ref'nd or iss'e t#e tax $redit $ertifi$ate for $redita!e inp't taxesit#in one #'ndred tent+ 1%0 da+s fro& t#e date of s'&ission of $o&p!ete do$'&ents.M5o!!oin" t#e vera !e"is do$trine, t#is !a &'st e app!ied exa$t!+ as orded sin$e it is $!ear,p!ain, and 'ne8'ivo$a!. #e taxpa+er $annot si&p!+ fi!e a petition it# t#e C it#o't aitin"for t#e Co&&issioner7s de$ision it#in t#e 1%0-da+ &andator+ and <'risdi$tiona! period. #eC i!! #ave no <'risdi$tion e$a'se t#ere i!! e no Mde$isionM or Mdee&ed a denia!M de$isionof t#e Co&&issioner for t#e C to revie. In San Ro8'e7s $ase, it fi!ed its petition it# t#e Ca &ere 13 da+s after it fi!ed its ad&inistrative $!ai& it# t#e Co&&issioner. Indisp'ta!+, SanRo8'e ;noin"!+ vio!ated t#e &andator+ 1%0-da+ period, and it $annot !a&e an+one 't itse!f.

Se$tion 11%C a!so express!+ "rants t#e taxpa+er a 30-da+ period to appea! to t#e C t#ede$ision or ina$tion of t#e Co&&issioner, t#'s>

x x x t#e taxpa+er affe$ted &a+, it#in t#irt+ 30 da+s fro& t#e re$eipt of t#e de$ision den+in"t#e $!ai& or after t#e expiration of t#e one #'ndred tent+ da+-period, appea! t#e de$ision ort#e 'na$ted $!ai& it# t#e Co'rt of ax ppea!s. E&p#asis s'pp!ied

#is !a is $!ear, p!ain, and 'ne8'ivo$a!. 5o!!oin" t#e e!!-sett!ed vera !e"is do$trine, t#is !as#o'!d e app!ied exa$t!+ as orded sin$e it is $!ear, p!ain, and 'ne8'ivo$a!. s t#is !a states,

t#e taxpa+er &a+, if #e is#es, appea! t#e de$ision of t#e Co&&issioner to t#e C it#in 30da+s fro& re$eipt of t#e Co&&issioner7s de$ision, or if t#e Co&&issioner does not a$t on t#etaxpa+er7s $!ai& it#in t#e 1%0-da+ period, t#e taxpa+er &a+ appea! to t#e C it#in 30 da+sfro& t#e expiration of t#e 1%0-da+ period.

x x x x





period, #is $!ai& is sti!! fi!ed on ti&e. #e Co&&issioner i!! #ave 1%0 da+s fro& s'$# fi!in" tode$ide t#e $!ai&. If t#e Co&&issioner de$ides t#e $!ai& on t#e 1%0t# da+, or does not de$ide iton t#at da+, t#e taxpa+er sti!! #as 30 da+s to fi!e #is <'di$ia! $!ai& it# t#e C. #is is not on!+t#e p!ain &eanin" 't a!so t#e on!+ !o"i$a! interpretation of Se$tion 11% and C.20 E&p#asesin t#e ori"ina!H $itations o&itted

In San Ro8'e, t#is Co'rt r'!ed t#at Ma!! taxpa+ers $an re!+ on /IR R'!in" No. D-)9-03 fro&t#e ti&e of its iss'an$e on 10 De$e&er %003 'p to its reversa! in i$#i on 4 O$toer %010,#ere t#is Co'rt #e!d t#at t#e 1%030 da+ periods are &andator+ and <'risdi$tiona!.M 21 e s#a!!dis$'ss !ater t#e effe$t of San Ro8'e7s re$o"nition of /IR R'!in" No. D-)9-03 on $!ai&s fi!edeteen 10 De$e&er %003 and 4 O$toer %010. (indanao I and II fi!ed t#eir $!ai&s it#in t#isperiod.

e r'!e on (indanao I and II7s <'di$ia! $!ai&s for t#e se$ond, t#ird, and fo'rt# 8'arters of %003as fo!!os>


(indanao II fi!ed its ad&inistrative $!ai&s for t#e se$ond, t#ird, and fo'rt# 8'arters of %003 on13 pri! %002. Co'ntin" 1%0 da+s after fi!in" of t#e ad&inistrative $!ai& it# t#e CIR 11 '"'st%002 and 30 da+s after t#e CIR7s denia! + ina$tion, t#e !ast da+ for fi!in" a <'di$ia! $!ai& it#t#e C for t#e se$ond, t#ird, and fo'rt# 8'arters of %003 as on 1% Septe&er %002. oever,t#e <'di$ia! $!ai& $annot e fi!ed ear!ier t#an 11 '"'st %002, #i$# is t#e expiration of t#e 1%0-da+ period for t#e Co&&issioner to a$t on t#e $!ai&.

1 (indanao II fi!ed its <'di$ia! $!ai& for t#e se$ond 8'arter of %003 efore t#e C on 6*'!+ %002, efore t#e expiration of t#e 1%0-da+ period. P'rs'ant to Se$tion 11%C of t#e1996 ax Code, (indanao II7s <'di$ia! $!ai& for t#e se$ond 8'arter of %003 aspre&at're!+ fi!ed.

oever, p'rs'ant to San Ro8'e7s re$o"nition of t#e effe$t of /IR R'!in" No. D-)9-03, e r'!e t#at (indanao II7s <'di$ia! $!ai& for t#e se$ond 8'arter of %003 8'a!ifies'nder t#e ex$eption to t#e stri$t app!i$ation of t#e 1%030 da+ periods.

% (indanao II fi!ed its <'di$ia! $!ai& for t#e t#ird 8'arter of %003 efore t#e C on 9Septe&er %002. (indanao II7s <'di$ia! $!ai& for t#e t#ird 8'arter of %003 as t#'s fi!edon ti&e, p'rs'ant to Se$tion 11%C of t#e 1996 ax Code.

3 (indanao II fi!ed its <'di$ia! $!ai& for t#e fo'rt# 8'arter of %003 efore t#e C on 9Septe&er %002. (indanao II7s <'di$ia! $!ai& for t#e fo'rt# 8'arter of %003 as t#'s fi!ed

on ti&e, p'rs'ant to Se$tion 11%C of t#e 1996 ax Code.


(indanao I fi!ed its ad&inistrative $!ai&s for t#e se$ond, t#ird, and fo'rt# 8'arters of %003 on pri! %002. Co'ntin" 1%0 da+s after fi!in" of t#e ad&inistrative $!ai& it# t#e CIR % '"'st%002 and 30 da+s after t#e CIR7s denia! + ina$tion,2% t#e !ast da+ for fi!in" a <'di$ia! $!ai& it#t#e C for t#e se$ond, t#ird, and fo'rt# 8'arters of %003 as on 1 Septe&er %002. oever,









t#e <'di$ia! $!ai& $annot e fi!ed ear!ier t#an % '"'st %002, #i$# is t#e expiration of t#e 1%0-da+ period for t#e Co&&issioner to a$t on t#e $!ai&.

1 (indanao I fi!ed its <'di$ia! $!ai& for t#e se$ond 8'arter of %003 efore t#e C on 6*'!+ %002, efore t#e expiration of t#e 1%0-da+ period. P'rs'ant to Se$tion 11%C of t#e1996 ax Code, (indanao I7s <'di$ia! $!ai& for t#e se$ond 8'arter of %003 as

pre&at're!+ fi!ed. oever, p'rs'ant to San Ro8'e7s re$o"nition of t#e effe$t of /IRR'!in" No. D-)9-03, e r'!e t#at (indanao I7s <'di$ia! $!ai& for t#e se$ond 8'arter of%003 8'a!ifies 'nder t#e ex$eption to t#e stri$t app!i$ation of t#e 1%030 da+ periods.

% (indanao I fi!ed its <'di$ia! $!ai& for t#e t#ird 8'arter of %003 efore t#e C on 9Septe&er %002. (indanao I7s <'di$ia! $!ai& for t#e t#ird 8'arter of %003 as t#'s fi!edafter t#e pres$riptive period, p'rs'ant to Se$tion 11%C of t#e 1996 ax Code.

3 (indanao I fi!ed its <'di$ia! $!ai& for t#e fo'rt# 8'arter of %003 efore t#e C on 9Septe&er %002. (indanao I7s <'di$ia! $!ai& for t#e fo'rt# 8'arter of %003 as t#'s fi!edafter t#e pres$riptive period, p'rs'ant to Se$tion 11%C of t#e 1996 ax Code.

San Ro8'e> Re$o"nition of /IR R'!in" No. D-)9-03

In t#e $onso!idated $ases of San Ro8'e, t#e Co'rt En /an$ 23 exa&ined and r'!ed on t#edifferent $!ai&s for tax ref'nd or $redit of t#ree different $o&panies. In San Ro8'e, e reiteratedt#at Mfo!!oin" t#e vera !e"is do$trine, Se$tion 11%C &'st e app!ied exa$t!+ as orded sin$eit is $!ear, p!ain, and 'ne8'ivo$a!. #e taxpa+er $annot si&p!+ fi!e a petition it# t#e C it#o'taitin" for t#e Co&&issioner7s de$ision it#in t#e 1%0-da+ &andator+ and <'risdi$tiona! period.#e C i!! #ave no <'risdi$tion e$a'se t#ere i!! e no de$ision7 or dee&ed a denia!de$ision7 of t#e Co&&issioner for t#e C to revie.M

Notit#standin" a stri$t $onstr'$tion of an+ $!ai& for tax exe&ption or ref'nd, t#e Co'rt in San

Ro8'e re$o"nied t#at /IR R'!in" No. D-)9-03 $onstit'tes e8'ita!e estoppe!

2

in favor oftaxpa+ers. /IR R'!in" No. D-)9-03 express!+ states t#at t#e Mtaxpa+er-$!ai&ant need not aitfor t#e !apse of t#e 1%0-da+ period efore it $o'!d see; <'di$ia! re!ief it# t#e C + a+ ofPetition for Revie.M #is Co'rt dis$'ssed /IR R'!in" No. D-)9-03 and its effe$t ontaxpa+ers, t#'s>

axpa+ers s#o'!d not e pre<'di$ed + an erroneo's interpretation + t#e Co&&issioner,parti$'!ar!+ on a diffi$'!t 8'estion of !a. #e aandon&ent of t#e t!as do$trine + (irant and

i$#i is proof t#at t#e re$;onin" of t#e pres$riptive periods for inp't : tax ref'nd or $redit is adiffi$'!t 8'estion of !a. #e aandon&ent of t#e t!as do$trine did not res'!t in t!as, or ot#ertaxpa+ers si&i!ar!+ sit'ated, ein" &ade to ret'rn t#e tax ref'nd or $redit t#e+ re$eived or $o'!d#ave re$eived 'nder t!as prior to its aandon&ent. #is Co'rt is app!+in" (irant and i$#i

prospe$tive!+. sent fra'd, ad fait# or &isrepresentation, t#e reversa! + t#is Co'rt of a"enera! interpretative r'!e iss'ed + t#e Co&&issioner, !i;e t#e reversa! of a spe$ifi$ /IR r'!in"'nder Se$tion %4, s#o'!d a!so app!+ prospe$tive!+. x x x.

x x x x

#'s, t#e on!+ iss'e is #et#er /IR R'!in" No. D-)9-03 is a "enera! interpretative r'!eapp!i$a!e to a!! taxpa+ers or a spe$ifi$ r'!in" app!i$a!e on!+ to a parti$'!ar taxpa+er.







/IR R'!in" No. D-)9-03 is a "enera! interpretative r'!e e$a'se it as a response to a 8'er+&ade, not + a parti$'!ar taxpa+er, 't + a "overn&ent a"en$+ tas;ed it# pro$essin" taxref'nds and $redits, t#at is, t#e One Stop S#op Inter-"en$+ ax Credit and Draa$; Centerof t#e Depart&ent of 5inan$e. #is "overn&ent a"en$+ is a!so t#e addressee, or t#e entit+responded to, in /IR R'!in" No. D-)9-03. #'s, #i!e t#is "overn&ent a"en$+ &entions in its8'er+ to t#e Co&&issioner t#e ad&inistrative $!ai& of Bai /a+ Reso'r$es Deve!op&ent, In$.,

t#e a"en$+ as in fa$t as;in" t#e Co&&issioner #at to do in $ases !i;e t#e tax $!ai& of Bai/a+ Reso'r$es Deve!op&ent, In$., #ere t#e taxpa+er did not ait for t#e !apse of t#e 1%0-da+period.

C!ear!+, /IR R'!in" No. D-)9-03 is a "enera! interpretative r'!e. #'s, a!! taxpa+ers $an re!+on /IR R'!in" No. D-)9-03 fro& t#e ti&e of its iss'an$e on 10 De$e&er %003 'p to itsreversa! + t#is Co'rt in i$#i on 4 O$toer %010, #ere t#is Co'rt #e!d t#at t#e 1%030 da+periods are &andator+ and <'risdi$tiona!.

x x x x

a"anito, #oever, fi!ed its <'di$ia! $!ai& it# t#e C on 1 5er'ar+ %006, after t#e iss'an$eof /IR R'!in" No. D-)9-03 on 10 De$e&er %003. r'!+, a"anito $an $!ai& t#at in fi!in" its

<'di$ia! $!ai& pre&at're!+ it#o't aitin" for t#e 1%0-da+ period to expire, it as &is!ed + /IRR'!in" No. D-)9-03. #'s, a"anito $an $!ai& t#e enefit of /IR R'!in" No. D-)9-03, #i$#s#ie!ds t#e fi!in" of its <'di$ia! $!ai& fro& t#e vi$e of pre&at'rit+. E&p#asis in t#e ori"ina!

S'&&ar+ of d&inistrative and *'di$ia! C!ai&s


d&inistrative

C!ai&

*'di$ia! C!ai& $tion on C!ai&

1st 'arter, %003 5i!ed !ate -- Den+, p'rs'ant toSe$tion 11% of t#e1996 ax Code

%nd 'arter, %003 5i!ed on ti&e Pre&at're!+ fi!ed Grant, p'rs'ant to/IR R'!in" No. D-)9-03

3rd 'arter, %003 5i!ed on ti&e 5i!ed on ti&e Grant, p'rs'ant toSe$tion 11%C of t#e1996 ax Code

t# 'arter, %003 5i!ed on ti&e 5i!ed on ti&e Grant, p'rs'ant to

Se$tion 11%C of t#e1996 ax Code


d&inistrative *'di$ia! C!ai& $tion on C!ai&



C!ai&

1st 'arter, %003 5i!ed !ate -- Den+, p'rs'ant toSe$tion 11% of t#e1996 ax Code

%nd 'arter, %003 5i!ed on ti&e Pre&at're!+ fi!ed Grant, p'rs'ant to/IR R'!in" No. D-)9-03

3rd 'arter, %003 5i!ed on ti&e 5i!ed !ate Grant, p'rs'ant toSe$tion 11%C of t#e1996 ax Code

t# 'arter, %003 5i!ed on ti&e 5i!ed !ate Grant, p'rs'ant toSe$tion 11%C of t#e1996 ax Code

S'&&ar+ of R'!es on Pres$riptive Periods Invo!vin" :

e s'&&arie t#e r'!es on t#e deter&ination of t#e pres$riptive period for fi!in" a tax ref'nd or$redit of 'n'ti!ied inp't : as provided in Se$tion 11% of t#e 1996 ax Code, as fo!!os>

1 n ad&inistrative $!ai& &'st e fi!ed it# t#e CIR it#in to +ears after t#e $!ose oft#e taxa!e 8'arter #en t#e ero-rated or effe$tive!+ ero-rated sa!es ere &ade.

% #e CIR #as 1%0 da+s fro& t#e date of s'&ission of $o&p!ete do$'&ents ins'pport of t#e ad&inistrative $!ai& it#in #i$# to de$ide #et#er to "rant a ref'nd oriss'e a tax $redit $ertifi$ate. #e 1%0-da+ period &a+ extend e+ond t#e to-+ear periodfro& t#e fi!in" of t#e ad&inistrative $!ai& if t#e $!ai& is fi!ed in t#e !ater part of t#e to-+ear period. If t#e 1%0-da+ period expires it#o't an+ de$ision fro& t#e CIR, t#en t#ead&inistrative $!ai& &a+ e $onsidered to e denied + ina$tion.

3 <'di$ia! $!ai& &'st e fi!ed it# t#e C it#in 30 da+s fro& t#e re$eipt of t#e CIR7sde$ision den+in" t#e ad&inistrative $!ai& or fro& t#e expiration of t#e 1%0-da+ periodit#o't an+ a$tion fro& t#e CIR.

!! taxpa+ers, #oever, $an re!+ on /IR R'!in" No. D-)9-03 fro& t#e ti&e of itsiss'an$e on 10 De$e&er %003 'p to its reversa! + t#is Co'rt in i$#i on 4 O$toer%010, as an ex$eption to t#e &andator+ and <'risdi$tiona! 1%030 da+ periods.

MIn$identa!M ransa$tion

(indanao II asserts t#at t#e sa!e of a f'!!+ depre$iated Nissan Patro! is not an in$identa!transa$tion in t#e $o'rse of its 'sinessH #en$e, it is an iso!ated transa$tion t#at s#o'!d not #aveeen s'<e$t to 10 :.

Se$tion 102 of t#e 1996 ax Code does not s'pport (indanao II7s position>

SEC. 102. Persons Bia!e. - n+ person #o, in t#e $o'rse of trade or 'siness, se!!s arters,ex$#an"es, !eases "oods or properties, renders servi$es, and an+ person #o i&ports "oodss#a!! e s'<e$t to t#e va!'e-added tax : i&posed in Se$tions 104 to 10) of t#is Code.



#e va!'e-added tax is an indire$t tax and t#e a&o'nt of tax &a+ e s#ifted or passed on to t#e'+er, transferee or !essee of t#e "oods, properties or servi$es. #is r'!e s#a!! !i;eise app!+ toexistin" $ontra$ts of sa!e or !ease of "oods, properties or servi$es at t#e ti&e of t#e effe$tivit+ of Rep'!i$ $t No. 6614.

#e p#rase Min t#e $o'rse of trade or 'sinessM &eans t#e re"'!ar $ond'$t or p'rs'it of a

$o&&er$ia! or an e$ono&i$ a$tivit+, in$!'din" transa$tions in$identa! t#ereto, + an+ personre"ard!ess of #et#er or not t#e person en"a"ed t#erein is a nonsto$;, nonprofit privateor"aniation irrespe$tive of t#e disposition of its net in$o&e and #et#er or not it se!!sex$!'sive!+ to &e&ers or t#eir "'ests, or "overn&ent entit+.

#e r'!e of re"'!arit+, to t#e $ontrar+ notit#standin", servi$es as defined in t#is Code renderedin t#e P#i!ippines + nonresident forei"n persons s#a!! e $onsidered as ein" rendered in t#e$o'rse of trade or 'siness. E&p#asis s'pp!ied

(indanao II re!ies on Co&&issioner of Interna! Reven'e v. (a"sa+sa+ Bines, In$.(a"sa+sa+22 and I&peria! v. Co!!e$tor of Interna! Reven'e I&peria!24 to <'stif+ its position.(a"sa+sa+, de$ided 'nder t#e NIRC of 19)4, invo!ved t#e sa!e of vesse!s of t#e Nationa!Deve!op&ent Co&pan+ NDC to (a"sa+sa+ Bines, In$. e r'!ed t#at t#e sa!e of vesse!s asnot in t#e $o'rse of NDC7s trade or 'siness as it as invo!'ntar+ and &ade p'rs'ant to t#eGovern&ent7s po!i$+ for privatiation. (a"sa+sa+, in 8'otin" fro& t#e C7s de$ision, i&p'ted'pon I&peria! t#e definition of M$arr+in" on 'siness.M I&peria!, #oever, is an 'nreported $aset#at &ere!+ stated t#at Mto en"a"e7 is to e&ar; in a 'siness or to e&p!o+ onese!f t#erein.M26

(indanao II7s sa!e of t#e Nissan Patro! is said to e an iso!ated transa$tion.1âwphi1 oever, itdoes not fo!!o t#at an iso!ated transa$tion $annot e an in$identa! transa$tion for p'rposes of: !iai!it+. Indeed, a readin" of Se$tion 102 of t#e 1996 ax Code o'!d s#o t#at atransa$tion Min t#e $o'rse of trade or 'sinessM in$!'des Mtransa$tions in$identa! t#ereto.M

(indanao II7s 'siness is to $onvert t#e stea& s'pp!ied to it + PNOC-EDC into e!e$tri$it+ andto de!iver t#e e!e$tri$it+ to NPC. In t#e $o'rse of its 'siness, (indanao II o'"#t and event'a!!+so!d a Nissan Patro!. Prior to t#e sa!e, t#e Nissan Patro! as part of (indanao II7s propert+,p!ant, and e8'ip&ent. #erefore, t#e sa!e of t#e Nissan Patro! is an in$identa! transa$tion &adein t#e $o'rse of (indanao II7s 'siness #i$# s#o'!d e !ia!e for :.

S'stantiation Re8'ire&ents

(indanao II $!ai&s t#at t#e C7s disa!!oan$e of a tota! a&o'nt of P9%,19).09 is i&proper asit #as s'stantia!!+ $o&p!ied it# t#e s'stantiation re8'ire&ents of Se$tion 113 2) in re!ationto Se$tion %3629 of t#e 1996 ax Code, as i&p!e&ented + Se$tion .10-1, .10-2 and .10)-1 of Reven'e Re"'!ation No. 6-92.40

e are $onstrained to state t#at (indanao II7s $o&p!ian$e it# t#e s'stantiation re8'ire&entsis a findin" of fa$t. #e C En /an$ eva!'ated t#e re$ords of t#e $ase and fo'nd t#at t#etransa$tions in 8'estion are p'r$#ases for servi$es and t#at (indanao II fai!ed to $o&p!+ it#t#e s'stantiation re8'ire&ents. e affir& t#e C En /an$7s findin" of fa$t, #i$# in t'rnaffir&ed t#e findin" of t#e C 5irst Division. e see no reason to overt'rn t#eir findin"s.

ERE5ORE, e PRIBBJ GRN t#e petitions. #e De$ision of t#e Co'rt of ax ppea!sEn /ane in C E/ No. 213 pro&'!"ated on 10 (ar$# %010, as e!! as t#e Reso!'tion















pro&'!"ated on %) *'!+ %010, and t#e De$ision of t#e Co'rt of ax ppea!s En /ane in C E/Nos. 64 and )3 pro&'!"ated on 31 (a+ %010, as e!! as t#e &ended De$ision pro&'!"atedon % Nove&er %010, are 55IR(ED it# (ODI5ICION.

5or G.R. No. 193301, t#e $!ai& of (indanao II Geot#er&a! Partners#ip for t#e first 8'arter of%003 is DENIED #i!e its $!ai&s for t#e se$ond, t#ird, and fo'rt# 8'arters of %003 are

GRNED. 5or G.R. No. 1943 6, t#e $!ai&s of (indanao I Geot#er&a! Partners#ip for t#efirst, t#ird, and fo'rt# 8'arters of %003 are DENIED #i!e its $!ai& for t#e se$ond 8'arter of%003 is GRNED.

SO ORDERED.

Documents

2. Mindanao II Geothermal Partnership vs. Cir Full