LBC EXPRESS - SEM, INC. v. COMMISSIONER OF INTERNAL REVENUE

.. REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY SECOND DIVISION LBC EXPRESS-SEM, INC., CTA Case No. 11942 Petitioner, 1\!Iembers: - versus - RINGPIS-LIBAN, Chairperson, MODESTO-SAN PEDRO, and FERRER-FLORES, Jl COMMISSIONER OF Promulgated: INTERNAL REVENUE, Respondent. X------------------------------------------------------------------------------------------~ff.r/~ RESOLUTION In the Resolution dated July 4, 2025, this Court dismissed the present Petition for Review for lack of jurisdiction. On August 13, 2025, petitioner flled its tv1otion for Reconsideration. In seeking reconsideration of the dismissal of its Petition for Review, petitioner avers that the latest rules issued by both the Supreme Court and this Court, allow the filing of initiatory pleadings by accredited courier that were in effect at the time of its filing on 1\!Iay 22, 2025. After careful evaluation of the arguments raised vis-a-vis the case records as well as the relevant statutoty rules and jurisprudence, this Court finds merit in petitioner's position. ACCORDINGLY, petitioner's l\!Iotion for Reconsideration is GRANTED. The Petition for Review having been found sufficient in form and substance, let Summons be issued to respondent in this case. It is noted that the present Petition for Review is accompanied by an Urgent ::1\{otion to Suspend Collection of Tax (With Prayer for the issuance of a Writ of Preliminary Injunction and Dispensing of Bond) (the "Urgent Motion"). In support thereof, petitioner argues that, apart from the ground of prescription,

RESOLUTION CTA Case No. 11942 the collection is premature since the deficiency taxes sought to be collected have not yet become delinquent. Petitioner likewise prays for the dispensation of the posting of a bond. It alleges that its cash account is insufficient to cover the total assessed amount and that it would be compelled to liquidate other assets, thereby disrupting its operations, merely to comply with the requirement of posting a bond. The Court is mindful of the well-entrenched principle in jurispmdence that "taxes arc the lifeblood of the government and should be collected promptly, without unnecessary hindrance or dclay." 1 Consistent with this principle, Section 218 of the National Internal Revenue Code of 1997, as amended, categorically provides that no court shall have the authority to grant an injunction to restrain the collection of any national internal revenue tax, fee, or charge imposed by the Code. The sole exception, as provided under Section 11 of Republic Act No. 1125, arises when, in the opinion of the Court, such collection may jeopardize the interests of the government and/or the taxpayer.2 In view of the foregoing, respondent is ORDERED to file, within five (5) days from receipt of the Summons or of this Resolution, whichever is later, a Comment or Opposition to petitioner's Urgent Motion. Let the Urgent LViotion be SET FOR HEARING on November 6, 2025 at 9:00AM to determine whether the issuance of a suspension order is warranted in this case. Pursuant to CTA En Bane Resolution No. 5-2024,3 respondent is hereby ORDERED to refrain from undertaking any administrative action for the collection of petitioner's alleged deficiency taxes subject of the present case during the pendency of the Urgent Motion, so as not to render nugatory or ineffectual the Court's ruling thereon. Respondent is FURTHER ORDERED to desist from enforcing or implementing the Warrant of Distraint and/or Levy (\'vDL) No. 126-2025-07 dated IVIay 20, 2025, until the Urgent Motion shall have been finally resolved. SO ORDERED. ~-~ .....,- MA. BELEN M. RINGPIS-LIBAN AJJatiate juJtice 1 Commissioner ofInternal Revenue v. Standard Insurance Co., Inc., G.R. No. 219340 (Resolution), April 28, 2021. 2 I d., citing Angeles City v. Angeles Electric Corporation, 636 Phil. 43, 51-52 (2010). 3 Temporary Suspension Order (June 10, 2024).

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