Tuesday, February 07, 2012

Filinvest Development Corporation vs. CIR, et.al. G. R. No. 146941, August 9, 2007

Facts: Filinvest Development Corporation filed a claim for refund or in the alternative the issuance of a tax credit certificate (TCC) with the Commissioner of Internal Revenue (CIR) representing excess creditable withholding taxes for taxable years 1994, 1995, 1996.

The CIR did not resolve the claim for refund and the two-year prescriptive period was about to lapse which prompted the petitioner to file a petition for review before the Court of Tax Appeals (CTA). In the petition, it prayed for refund or in the alternative the issuance of TCC amounting P3,173,868.00.The amount of P1,004,236.00 representing excess/unutilized creditable withholding taxes for 1994 was no longer included as it was already barred by prescription.

Eventually, CTA dismissed the petition for review. Motion for review was filed before the Court of Appeals which was dismissed so as the motion for reconsideration, denied.

Then here comes the petition before the Supreme Court which was also denied but later in the motion for reconsideration it was at last granted. The petitioner alleged among others that the CA erred in relying on CTA cases where they cited in its decision as jurisprudential basis to support its ruling.

Issue: Whether or not decisions of the CTA are jurisprudential basis for coming up a decision. 

Held: The SC ruled that the CA was wrong in relying decisions of the CTA as jurisprudential basis in resolving the case.

By tradition and in our system of administration, the Supreme Court has the last word on what the law is, and that its decisions applying or interpreting the laws or the Constitution form part of the legal system of the country, all other courts should take their bearings from the decisions of this court.

The principle of “stare decisis et non quieta movere, as embodied in ART 8 of the CIVIL CODE of the Philippines,enjoins adherence to judicial precedents. It requires our courts to follow a rule already established in a final decision of the SC. That decision becomes a judicial precedent to be followed in subsequent cases by all courts in the land.

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