CIR vs. San Roque Power Corporation [En Banc Decision]

COMMISSIONER OF INTERNAL REVENUE, Petitioner, vs. SAN ROQUE POWER CORPORATION, Respondent. X----------------------------X TAGANITO MINING CORPORATION, Petitioner, vs. COMMISSIONER OF INTERNAL REVENUE, Respondent. x----------------------------x PHILEX MINING CORPORATION, Petitioner, vs. COMMISSIONER OF INTERNAL REVENUE, Respondent.

G.R. No. 187485 / G.R. No. 196113 / G.R. No. 197156 | 2013-02-12

Operative fact doctrine
120-day period given by law to the Commissioner (CIR) to grant or deny application for tax refund or credit mandatory and jurisdictional; 30-day period need not fall within the two-year prescriptive period
Strict compliance with the mandatory and jurisdictional conditions prescribed by law to claim such tax refund or credit is essential and necessary for such claim to prosper
Equitable estoppel under Section 246 of the Tax Code
CTA does not acquire jurisdiction over a judicial claim that is filed before the expiration of the 120-day period, exceptions to the rule
A reversal of a BIR regulation or ruling by the Commissioner or the court cannot adversely prejudice a taxpayer who in good faith relied on the BIR regulation or ruling prior to its reversal, Section 246 Tax Code
Commissioner of internal Revenue has exclusive and original jurisdiction to interpret tax laws
BIR Ruling No. DA-489-03 is an erroneous interpretation of the law

EN BANC

D E C I S I O N

CARPIO, J.:

The Cases

G.R. No. 187485 is a petitiOn for review1 assailing the Decision2 promulgated on 25 March 2009 as well as the Resolution3 promulgated on 24 April 2009 by the Court of Tax Appeals En Banc (CTA EB) in CTA EB No. 408. The CTA EB affirmed the 29 November 2007 Amended Decision4 as well as the 11 July 2008 Resolution5 of the Second Division of the Court of Tax Appeals (CTA Second Division) in CTA Case No. 6647. The CTA Second Division ordered the Commissioner of Internal Revenue (Commissioner) to refund or issue a tax credit for P483,797,599.65 to San Roque Power Corporation (San Roque)...