E-POWER SECURITY AND INVESTIGATION SERVICES, INC. v. HON. CAESAR R. DULAY - IN HIS CAPACITY AS THE COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY ENBANC E-POWER SECURITY AND CTA EB NO. 2(47 INVESTIGATION SERVICES, (CTA Case No. 10143) INC., Present: Petitioner, -versus- DEL ROSARIO, P.J. , RINGPIS-LIBAN, MANAHAN, BACORRO-VILLENA, MODESTO-SAN PEDRO, REYES-FAJARDO, CUI-DAVID , FERRER-FLORES, and ANGELES, JJ. HON. CAESAR R. DULAY - IN HIS CAPACITY AS THE Promulgated: COMMISSIONER OF INTERNAL REVENUE, Respondent. SEP 0 8 �025 I 11:03 ~�M. }{- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~!!; . - X RESOLUTION CUI-DAVID, J.: This resolves petitioner's Motion for Reconsideration (Re: Decision dated 21 February 2025), filed on March 17, 2025, with respondent's Comment (Re: Petitioner's Motion for Reconsideration dated March 17, 2025), filed on April 21, 2025. Petitioner prays that the Court reconsider and set aside its Decision dated February 21, 2025, which disposed of the case as follows: WHEREFORE, the Petition for Review (Re: Decision dated 21 November 2022 and Resolution dated 16 March2023) is DENIED for lack of merit. Accordingly, the Decision dated November 21 , 2022, and the Resolution dated March 16, 2023, are AFFIRMED.

RESOLUTION CTA EB No. 2747 (CTA Case No. 10143) E-Power Security and Investigation Services, Inc. v. Hon. Caesar R. Dulay- in his capacity as the Commissioner of Internal Revenue Page 2 of4 x------------------------------------------------------------------------------------x SO ORDERED. Petitioner contends that the Court En Bane erred in affirming in toto the findings of the Court in Division. Specifically, petitioner maintains that the Formal Letter of Demand (FLD) and assessment notices were not validly served on an authorized representative on December 17, 2018. Consequently, petitioner asserts that the burden of proving valid service rests with the respondent. Petitioner asserts that respondent failed to present any testimonial evidence to support the claim that the FLD and assessment notices were validly served. In particular, the revenue officer who allegedly served the FLD was not presented as a witness, and no evidence was offered to establish the authority of Mr. Herdel DelaCruz (Mr. DelaCruz) to receive the documents on petitioner's behalf. Petitioner further argues that the conclusion that the FLD and assessment notices became final and executory due to its failure to file a protest within the prescribed thirty (30)-day period lacks evidentiary support. It insists that in the absence of proof of proper service, the Court erred in ruling that petitioner had only until January 16, 2019, to file a protest. In response, respondent asserts that the FLD and assessment notices were properly served at petitioner's registered address and received by an authorized representative. Respondent emphasizes that petitioner's own president and witness, Retired Brigadier General Emiliano D. Templo, testified under oath that Mr. Dela Cruz routinely received external communications and was the person who received the FLD. Respondent also reiterates the findings of both the Court in Division and the Court En Bane that petitioner failed to file a protest within the required 30-day period, rendering the assessment final. The motion lacks merit. Petitioner's claim that respondent failed to prove valid service is unpersuasive. The records clearly show that the FLD and assessment notices were received on December 17, 2018, by Mr. Dela Cruz,! who was identified by petitioner's own Division Docket, Vol. Ill, pp. 1503-1508, Exhibit �'R-8''.

RESOLUTION CTA EB No. 2747 (CTA Case No. 10143) E-Power Security and Investigation Services, Inc. v. Hon. Caesar R. Dulay- in his capacity as the Commissioner of Internal Revenue Page 3 of4 x------------------------------------------------------------------------------------x witness as the "records custodian."2 Petitioner's president also confirmed under oath that Mr. Dela Cruz, regularly handled official company documents and was authorized to receive external communications in the normal course of business.3 Moreover, the absence of testimony from the revenue officer who personally served the FLD does not negate the finding of valid service. Petitioner acknowledged receipt of the FLD and confirmed the authority of the person who received it.4 The regularity of the company's communication procedures, as admitted by petitioner's own officer, suffices to establish proper serv1ce. Even assuming arguendo, that the FLD and assessment notices were received only on December 27, 20 18, as alleged in petitioner's protest dated April 12, 20 19,5 the protest would still have been filed late, since the 30-day reglementary period would have expired on January 26, 2019. Thus, the protest remains fatally defective for being filed out of time. It is well-settled that failure to file a valid administrative protest within the 30-day period prescribed under Section 228 of the National Internal Revenue Code of 1997, as amended, renders the assessment final, executory, and demandable, thereby divesting the Court of Tax Appeals ofjurisdiction to rule on its validity or correctness. In fine, the Court En Bane finds no reversible error in its Decision dated February 21, 2025. The FLD and assessment notices were validly served, and petitioner failed to file a timely administrative protest. This procedural lapse is jurisdictional and fatal to petitioner's case. WHEREFORE, petitioner's Motion for Reconsideration (Re: Decision dated 21 February 2025) is DENIED for lack of merit. SO ORDERED. LANt!t~MA~~A1'CVUirI!-'D~AV.ID Associate Justice Division Docket, Vol. II, p. 395, Exhibit ..P-42". !d.; Transcript of Stenographic Notes (TSN). February 23. 2021. pp. 20-21. TSN, February 23,2021, pp. 20-21. Division Docket. Vol. II. pp. 477-479. Exhibit ""P-15""; Division Docket. Vol. III. pp. 1519-1521. Exhibit ""R-14"".

RESOLUTION CTA EB No. 2747 (CTA Case No. 10143) E-Power Security and Investigation Services, Inc. v. Hon. Caesar R. Dulay- in his capacity as the Commissioner of Internal Revenue x------------------------------------------------------------------------------------x WE CONCUR: Presiding Justice ON LEAVE MA. BELEN M. RINGPIS-LIBAN Associate Justice V'A~--17 CATHERINE T. MANAHAN Associate Justice "'- JEAN MARl A stice ~ ~ ~ ~ ~tiJC�11M MARIAN IVi!F. REYES-FA'JARDO Associate Justice ~q-'. CORAzON G. Associate Justic HENRY ~~NGELES Associate Justice