Facts: The Court motu proprio consolidates two (2) cases as the issues raised are similar.
1.) During the period from July 1, 1980 to June 30, 1982, private respondent CDCP Mining Corp. purchased from Mobil Oil Philippines, Inc. and Caltex Philippines Inc. quantities of manufactured mineral oil, motor fuel, diesel and fuel oil, which private respondents used exclusively in the exploitation and operation of its mining concession.
On September 6, 1982, private respondent filed with the CIR, a claim for refund in the amount of P9,962,299.71, representing 25% of the specific taxes collected on refined and manufactured mineral oil, motor fuel, and diesel fuel that private respondent utilized in its operations as mining concessionaire, totaling P39,849,198.47.
As there was no immediate action on the claim, to toll the prescriptive period, on October 9, 1982, private respondent filed with the CTA, a petition for review of the presumed decision of the Commissioner denying such claim. CTA rendered a decision granting private respondent’s claim for refund only in the amount of P38,461.86, without interest. Private respondent filed a petition for review before the CA, which on November 9, 1994, rendered a decision modifying that of the CTA, ordering the CIR to refund to petitioner CDCP the amount of P1,598,675.25, without interest, equivalent to 25% refund of specific taxes paid on its purchases during the period September 23, 1980 to June 30, 1982 of manufactured oil and other diesel oils.
Both parties field their respective motions for reconsideration when the CA denied both motions, petitioner filed a petition for review on certiorari.
2.) During the period beginning July 1, 1980 to May 31, 1981, petitioner Sirawai Plywood and Lumber Co. Inc., purchased from various oil companies refined and manufactured mineral oils, motor fuels and diesel fuel oils which petitioner actually and exclusively used in connection with the exploitation and operation of its forest concession; that the said oil companies paid and passed on to the petitioner the specific taxes imposed under sections 153 and 156 of the NIRC on refined and manufactured oils, motor and diesel fuel oils that said company sold to the petitioner.
Petitioner filed with the CIR on November 8, 1982 a claim for refund in the amount of P99,226.17 representing 35% of the specific taxes collected on the refined and manufactured oils. On December 13, 1982, the petitioner filed with the CTA a petition for review of the decision dated December 1, 1982 to prevent the lapse of the 2-year prescriptive period.
On August 2, 1994, the CTA rendered a decision ordering CIR to refund the sum of P1,101.15 in favor of Sirawai Plywood. On appeal, the CA denied the same for lack of merit. Hence, this petition for review on certiorari.
Issue: Whether or not the mining concessionaires are entitled for refund which is equivalent to 25% partial refund of specific taxes in pursuant to Sec. 5 of Ra 1435.
Held: A partial refund under Sec. 5 of RA 1435 is in the nature of tax exemption, and therefore, must be construed in strictissimi juris against the grantee. There is nothing in Sec. 5 RA 1435 which authorizes a tax refund based on higher rates under Sec. 153 and 156 of NIRC.
“When the law itself does not explicitly provide that a refund under RA 1435 may be based on higher rates which were non-existent at the time of its enactment, this court cannot presume otherwise. A legislative lacuna cannot be filled by judicial fiat.”
The grant of refund to the mining concessionaires is proper.
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