The 120-30 days period under Section 112 of the NIRC are mandatory and jurisdictional. Failure of the taxpayer to file its claim for refund within the said periods is fatal to his claim.

This case involves a claim for refund of alleged excess and unutilized input VAT for the periods covering July 1, 2008 to September 30, 2008 and October 1, 2008 to December 31, 2008 in the amount of P115,242,046.55. On December 9, 2009, the taxpayer filed an application with the BIR for the refund of this alleged excess and unutilized input tax. Due to inaction of the BIR, it filed a petition for review with the CTA on December 29, 2010.
The petition was dismissed for lack of jurisdiction due to the failure of the taxpayer to observe the 120-30 day periods provided under Section 112 of the NIRC. Citing the cases of CIR vs. Aichi Forging Company of Asia, Inc.1 and CIR vs. San Roque2, the Supreme Court said that the 120-30 days period are mandatory and jurisdictional. Hence, the claim of the petitioner for refund should be disallowed. (Procter & Gamble Asia, PTE LTD vs. Commissioner of Internal Revenue, CTA EB No. 973, Promulgated December 9, 2013)