CD: JRA Philippines, Inc. v. CIR

October 29, 2010 at 4:16 pm (2010, Case Digests) (, , )

J.R.A. PHILIPPINES, INC. v. COMMISSIONER OF INTERNAL REVENUE
G.R. No. 177127 October 11, 2010
Del Castillo, J.

Doctrine:
The absence of the word “zero rated” on the invoices/receipts is fatal to a claim for credit/refund of input VAT.
Stare decisis et non quieta movere. Courts are bound by prior decisions. Thus, once a case has been decided one way, courts have no choice but to resolve subsequent cases involving the same issue in the same manner.

Facts:
Petitioner, a PEZA Corporation, filed applications for tax credit/refund of unutilized input VAT on its zero-rated sales for the taxable quarters of 2000. The claim for credit/refund, however, remained unacted by the respondent. Hence, petitioner was constrained to file a petition before the CTA.

The CTA eventually denied the petition for lack of the word “zero-rated” on the invoices/receipts.

Issue:
Whether or not the failure to print the word “zero-rated” on the invoices/receipts is fatal to a claim for credit/ refund of input VAT on zero-rated sales

Held:
Yes. The absence of the word “zero rated” on the invoices/receipts is fatal to a claim for credit/refund of input VAT. This has been squarely resolved in Panasonic Communications Imaging Corporation of the Philippines (formerly Matsushita Business Machine Corporation of the Philippines) v. Commissioner of Internal Revenue (G.R. No. 178090, 612 SCRA 28, February 8, 2010). In that case, the claim for tax credit/refund was denied for non-compliance with Section 4.108-1 of Revenue Regulations No. 7-95, which requires the word “zero rated” to be printed on the invoices/receipts covering zero-rated sales.

From the abovementioned decision, the Court ruled that the appearance of the word “zero-rated” on the face of invoices covering zero-rated sales prevents buyers from falsely claiming input VAT from their purchases when no VAT was actually paid. If, absent such word, a successful claim for input VAT is made, the government would be refunding money it did not collect.

Stare decisis et non quieta movere. Courts are bound by prior decisions. Thus, once a case has been decided one way, courts have no choice but to resolve subsequent cases involving the same issue in the same manner [Agencia Exquisite of Bohol, Incorporated v. Commissioner of Internal Revenue, G.R. Nos. 150141, 157359 and 158644, February 12, 2009, 578 SCRA 539, 550].

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