CIR vs. AJINOMOTO (Tax 2)

COMMISSIONER OF INTERNAL REVENUE vs. AJINOMOTO PHILIPPINES CORPORATION

CTA EB CASE NO. 1010  

(CTA Case  No.  7877)

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AJINOMOTO PHILIPPINES Petitioner, -versus- COMMISSIONER OF INTERNAL RINGPIS-LIBAN, JJ. REVENUE, CTA EB CASE NO. 1015 CORPORATION, (CTA Case  No.  7877) 

FACTS:

Ajinomoto received the Preliminary Assessment Notice (PAN) on December 16, 2008 giving Ajinomoto 15 days from receipt thereof to response and thereafter on December 22, 2008, received the Final Assessment Notice (FAN). Thus, Ajinomoto assert that the absence of its opportunity to contest and reply to the PAN before the FAN was issued was an infirmity that effectively deprive Ajinomoto of its right to procedural due process.

ISSUE:

Whether there was a denial of due process due to violation of Section 228 of the Tax Code and Revenue Regulation No. 12-99.

RULING:

None, though respondent successively issued the Notice of Informal Conference, the Preliminary Assessment Notice and the Formal Letter of Demand, together with the 

Details of Discrepancies and Assessment Notices, one after another, the fact remains that petitioner has been duly notified of the procedures prescribed under Section 228 and has been informed of the factual and legal bases of the assessments.

In fact, petitioner was able to exhaustively protest respondent's assessments in a Letter dated December 23, 2008. It cannot be denied that Ajinomoto had been given the opportunity to refute the charges against it, was able to timely file its administrative protest and was able to discuss its position on the deficiencies being assessed against it. Apparently, there was substantial compliance in the procedure in protesting the assessments and petitioner's right to due process was adequately observed and protected.