CASES THAT REITERATE THE RULING IN CIR v.

SAN ROQUE1

1. Silicon Philippines, Inc. vs. CIR, G.R. No. 182737, 2 March 2016

[T]he administrative claim of a VAT-registered person for the issuance by respondent of

tax credit certificates or the refund of input taxes paid on zero-rated sales or capital
goods imported may be made within two years after the close of the taxable quarter
when the sale or importation/purchase was made.

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Upon the filing of an administrative claim, respondent is given a period of 120 days
within which to (1) grant a refund or issue the tax credit certificate for creditable input
taxes; or (2) make a full or partial denial of the claim for a tax refund or tax credit.
Failure on the part of respondent to act on the application within the 120-day period
shall be deemed a denial.

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Whether respondent rules in favor of or against the taxpayer or does not act at all on
the administrative claim within the period of 120 days from the submission of
complete documents, the taxpayer may resort to a judicial claim before the CTA.

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The judicial claim shall be filed within a period of 30 days after the receipt of
respondent's decision or ruling or after the expiration of the 120-day period, whichever
is sooner.2

1 CIR v. San Roque Power Corporation, G.R. Nos. 187485, 196113 & 197156, 12 February 2013, 690 SCRA 336.

2 Citing Section 11 of R.A. 1125 (An Act Creating the Court of Tax Appeals), as amended, which provides:SECTION 11. Who
May Appeal; Mode of Appeal; Effect of Appeal. Any party adversely affected by a decision, ruling or inaction of the
Commissioner of Internal Revenue, the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade and Industry
or the Secretary of Agriculture or the Central Board of Assessment Appeals or the Regional Trial Courts may file an appeal with
the CTA within thirty (30) days after the receipt of such decision or ruling or after the expiration of the period fixed by law for
action as referred to in Section 7 (a) (2) herein.
Aside from a specific exception to the mandatory and jurisdictional nature of the periods
provided by the law,3 any claim filed in a period less than or beyond the 120+30 days
provided by the NIRC is outside the jurisdiction of the CTA.4

3 Note No. 50 reads, In CIR v. San Roque Power Corporation (G.R. Nos. 187485, 196113 & 197156, 12 February
2013, 690 SCRA 336), the Court applied the equitable principle of estoppel and ruled that judicial claims filed from
the issuance of BIR Ruling No. DA-489-03 on 10 December 2003 up to its reversal in CIR v. Aichi Forging Company
of Asia, Inc. (G.R. No. 184823, 646 SCRA 710) on 6 October 2010 need not wait for the lapse of the 120+30 day
period.

4 CIR v. San Roque Power Corporation, Supra. Underscoring Supplied.

2. CIR v. Team Sual Corporation, G.R. No. 205055. July 18, 2014

Under Section 112 (C) of the NIRC, in case of failure on the part of the CIR to act on the
application, the taxpayer affected may, within 30 days after the expiration of the 120-day
period, appeal the unacted claim with the CTA. The charter of the CTA 5 also expressly
provides that if the Commissioner fails to decide within "a specific period" required by
law, such "inaction shall be deemed a denial" of the application for tax refund or credit.
In Commissioner of Internal Revenue v. San Roque Power Corporation, 6 we
emphasized that compliance with the 120-day waiting period is mandatory and
jurisdictional. In this case, when TSC filed its administrative claim on 21 December
2005, the CIR had a period of 120 days, or until 20 April 2006, to act on the claim.
However, the CIR failed to act on TSC's claim within this 120-day period. Thus, TSC
filed its petition for review with the CTA on 24 April 2006 or within 30 days after the
expiration of the 120-day period. Accordingly, we do not find merit in the CIR's argument
that the judicial claim was prematurely filed.7

5 Note No. 24 reads:The charter of the CTA, RA 1125, as amended, provides:

Section 7. Jurisdiction. The CTA shall exercise:
(1) . . .
(2) Inaction by the Commissioner of Internal Revenue in cases involving disputed assessments,
refunds of internal revenue taxes, fees or other charges, penalties in relation thereto, or other matters arising
under the National Internal Revenue Code or other laws administered by the Bureau of Internal Revenue,
where the National Internal Revenue Code provides a specific period of action, in which case the inaction
shall be deemed a denial; . . . (Emphasis supplied)

6 Commissioner of Internal Revenue v. San Roque Power Corporation, G.R. No. 187485, 12 February 2013, 690
SCRA 336.

7 Underscoring Supplied.