CIR v. Aichi G.R.

184823
October 06, 2010 [Per. J. Del Castillo, First Division]

Issue:
How is a year counted?
Facts:
Aichi filed a claim for refund/credit of input VAT for the period July 1, 2002 to September
30, 2002, with the petitioner Commissioner of Internal Revenue (CIR), through the
Department of Finance (DOF) One-Stop Shop Inter-Agency Tax Credit and Duty
Drawback Center. On even date, respondent filed a Petition for Review with the CTA for
the refund/credit of the same input VAT.
The court confirmed that Aichi has sufficient proof which entitled it to a refund or issuance
of tax credit certificate unutilized excess input VAT payments attributable to its zero rated
sales with a reduced amount.
The CTA partially granted the petition.
In a Motion for Reconsideration, CIR argued that Aichi filed the claim beyond the two-
year period under Sections 112 (A) and 229 of the NIRC. CIR further stated that a prior
filing of an administrative claim is a “condition precedent” before a judicial claim can be
filed.
Though, the filing of administrative claim was on time, Aichi has violated the Section 112
112 (D) of the NIRC. The 120 days is crucial in filing an appeal with the CTA.
Due to premature filing of respondent’s claim for refund/credit of input VAT before the
CTA warrants a dismissal in as much as no jurisdiction was acquired by the CTA.
The CTA En Banc affirmed the division ruling.
Ruling:
In this case, it manifest incompatibility in the manner of computing legal periods under the
Civil Code (365 days) and the Administrative Code of 1987(12 months), being the most
recent law, governs the computation of legal periods,.
Applying Section 31, Chaper VIII, Book 1 of the Administrative Code of 1987, the two-
year prescriptive period consisted of 24 calendar months, the number of days is irrelevant.
Whether the respondent’s judicial and administrative claims for tax refund/credit were filed
within the two-year prescriptive period as provided in Sections 112(A) and 229 of the
NIRC.
In computing a period, the first day is excluded, and the last day is included.