POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT CORPORATION v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES Court of Tax Appeals QUEZON CITY THIRD DIVISION POWER SECTOR ASSETS AND CTA CASE NO. 8475 LIABILITIES MANAGEMENT Members: (PSALM) CORPORATION, Petitioner, -versus- Bautist a, Chairperson, Pabon-Victorino, and Ringpis-Liban Jl COMMISSIONER OF INTE RNAL Promulgated: REVENUE, FEB 2 5 2015 Respondent. ~ ~~~Z-f'�-. X-------- -------------------------------------------------------- X RESOLUTION For resolution is petitioner's "Manifestation/Motion" with attached "Motion for Partial Reconsideration" ftled on December 19, 2014 seeking to set aside in part the Decision promulgated December 2, 2014 and issue a new judgment ordering the cancellation and withdrawal of the assessment for deficiency VAT of P9,566,062,571.44, and ordering the cancellation and withdrawal of the Final Assessment Notice (FAN)' dated June 9, 2011. On the other hand, respondent failed to ftle her Comment despite notice he re o f 2 . The dispositive portion of the assailed Decision reads as follows: "WHEREFORE, premises considered, the instant Petition for Review is hereby PARTIALLY GRANTED. Accordingly, the assessments issued by respondent against petitioner covering taxable year 2008 for deficiency value-added t VT-08-00072 2 Records Verifica tion Report of the Third Division, Court of Tax Appeals, s tating that respondent Jailed to file her COMMENT on petitioner's "Motion for Partial Reconsideration " filed on December 19, 2014 regarding Resolution dated January 7, 2015.

RESOLUT ION CTA CASE NO. 8475 Page2 of 2 tax are UPHELD but in the MODIFIED AMOUNT of NINE BILLION FIVE HUNDRED SIXTY SIX MILLION SIXTY TWO THOUSAND FIVE HUNDRED SEVENTY ONE and 44/100 PESOS (P9,566,062,571.44), inclusive o f twenty percent (20%) interest imposed upo n Section 249(A) of the T ax Code, as amended. XXX XXX XXX." In ass ailing the decision, petltlo ner alleges that the enactment of Republic Act (R.A.) No. 9337 which made the E lectric Power System subject to Value-Added T ax (VAT) is no t applicable to PSALM's privatization activities. Petitio ner maintains that PSALMS privatization activities are no t made in the ordinary course of business but made in compliance with the mandate of R.A. No. 91 36 or the Electric Power Industry Reform Act of 2001 (EPIRA). In additio n, petltloner also maintains that PSALM's privatization activities are not incidental to its selling of electricity and the collections o f income and receivables are no t subject to VAT. After careful consideration of the grounds raised in the instant motion, the Court finds that the issues and arguments raised therein had already been amply discussed, passed up on and considered by this Court in the D ecision sought to be considered. The arguments stated therein constitute neither compelling nor cogent reason to modify, much less set aside our D ecision dated D ecember 2, 2014. WHEREFORE, premises considered, resp ondent Commissioner of Internal Revenue's "Motion for Partial Reconsideration" is hereby DENIED for lack o f merit. SO ORDERED. LOVELL R. B-A-UTISTA Associate Juhice ~.~ -A.- L__ ' R. PABON-VICTORINO MA. BELEN M . RINGPIS-LIBAN Associate Justice