Commissioner of Internal Revenue v. Hitachi Computer Products (Asia) Corp.

SPECIAL FIRST DIVISION[CA-G.R. SP No. 66092. July 21, 2006.]COMMISSIONER OF INTERNAL REVENUE, petitioner, vs. HITACHI COMPUTER PRODUCTS (ASIA) CORP., respondent.[CA-G.R. SP No. 67262. July 21, 2006.]HITACHI COMPUTER PRODUCTS (ASIA) CORP., petitioner, vs. COMMISSIONER OF INTERNAL REVENUE., respondent.D E C I S I O NREYES, R.T., P.J p:THE consolidated cases involve petitions 1 separately filed by the Commissioner of Internal Revenue (the Commissioner) and Hitachi Computer Products (Asia) Corp. (Hitachi) that seek the review of the Decision 2 of the Court of Tax Appeals (CTA) ordering a refund or the issuance of a tax credit certificate but disallowing the entire claimed amount for excess input Value-Added Taxes (VAT).The AntecedentsThe CTA summarized the factual antecedents of this controversy as follows:"Petitioner is a domestic corporation organized and existing under the laws of the Republic of the Philippines, with principal office at Special Export Processing Zone, Laguna Technopark, Biñan, Laguna. It is engaged in the business of manufacturing, exporting, buying, selling or otherwise dealing in at wholesale electric, electronic and software products and industrial properties, including but not limited...