PNB V CIR

SUPREME COURT REPORTS ANNOTATED VOLUME 662 5/24/21, 10:25 PM
G.R. No. 172458. December 14, 2011.*
PHILIPPINE NATIONAL BANK, petitioner, vs.

COMMISSIONER OF INTERNAL REVENUE, respondent.
Civil Procedure; Pleadings and Practice; A pleading filed by

ordinary mail or by private messengerial service x x x is deemed filed
on the day it is actually received by the court and not on the day it
was mailed or delivered to the messengerial service.·PNB filed its
petition with the CTA En Banc four days beyond the extended
period granted to it to file such petition. PNB argues that it was
filed on time since it was mailed on the last day of the extended
period, which was on December 23, 2005. It has been established
that a pleading „filed by ordinary mail or by private messengerial
service x x x is deemed filed on the day it is actually received by the
court, and not on the day it was mailed or delivered to the
messengerial service.‰
Same; Same; Service of Pleadings; Service by ordinary mail is
allowed only in instances where no registry service exists.·
Considering the circumstances, it would have been more logical for
PNB to send its petition to the CTA En Banc on the same occasion it
sent a copy to the CIR, especially since that day was already the
last day given to PNB to file its petition. Moreover, PNB offered no
justification as to why it sent its petition via ordinary mail instead
of registered mail. „Service by ordinary mail is allowed only in
instances where no registry service exists.‰
Same; Same; Court already upheld the mandatory character of
attaching duplicate originals or certified true copies of the assailed
decision to a petition for review; Non-compliance with such
mandatory requirement is a sufficient ground to dismiss the petition.
·This Court has already upheld the mandatory character of
attaching duplicate originals or certified true copies of the assailed
decision to a petition for review. Moreover, pursuant to Section 7,
Rule 43 of the Rules of Court, non-compliance with such mandatory
requirement is a sufficient ground to dismiss the petition.
https://central.com.ph/sfsreader/session/000001799ec44c7d5479b483000d00d40059004a/p/AUQ633/?username=Guest Page 1 of 18
Same; Same; The periods for filing petitions for review and for
certiorari are to be observed religiously.·This Court agrees with the
CTA En Banc that PNB has not demonstrated any cogent reason for
this Court to take an exception and excuse PNBÊs blatant disregard
of the basic procedural rules in a
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* FIRST DIVISION.
425
VOL. 662, DECEMBER 14, 2011 425
Philippine National Bank vs. Commissioner of Internal Revenue
petition for review. Furthermore, the timely perfection of an appeal

is a mandatory requirement. One cannot escape the rigid
observance of this rule by claiming oversight, or in this case, lack of
foresight. Neither can it be trifled with as a „mere technicality‰ to
suit the interest of a party. Verily, the periods for filing petitions for
review and for certiorari are to be observed religiously. „Just as
[the] losing party has the privilege to file an appeal within the
prescribed period, so does the winner have the x x x right to enjoy
the finality of the decision.‰
PETITION for review on certiorari of the resolutions of the

Court of Appeals.
The facts are stated in the opinion of the Court.
Flerida P. Zabala-Banzuela for petitioner.
The Solicitor General for respondent.
LEONARDO-DE CASTRO, J.:
This Petition for Review on Certiorari1 seeks to
reverse and set aside the January 27, 20062 and April 19,
20063 Resolutions of the Court of Tax Appeals En
Banc (CTA En Banc) in C.T.A. E.B. NO. 145, which
dismissed outright the Petition for Review filed by the
Philippine National Bank (PNB) dated December 27, 2005
for being filed four days beyond the additional 15 days
granted to file such petition.
On April 15, 1999, petitioner PNB filed with the Bureau
of Internal Revenue (BIR) its Tentative Return for 1998

with the documents enumerated in the „List of
Attachments to Annual Income Tax Return Calendar Year
Ended December 31, 1998‰ enclosed. On September 30,
1999, PNB filed its Amended Income Tax Return for 1998,
with the corresponding attachments to an amended annual
income tax return appended, including copies of the
Certificates and Sched-
_______________
1 Rule 45 of the 1997 Rules of Court.
2 Rollo, pp. 12-14; Ordered by Presiding Justice Ernesto D. Acosta and
Associate Justices Juanito C. Castañeda, Jr., Lovell R. Bautista, Erlinda
P. Uy, Caesar A. Casanova, and Olga Palanca-Enriquez.
3 Id., at pp. 8-11.
426
426 SUPREME COURT REPORTS ANNOTATED

Philippine National Bank vs. Commissioner of Internal
Revenue
ule of Creditable Withholding Taxes for 1998. PNB likewise

filed its Corporate Quarterly Returns for the calendar year
1998.4
On February 8, 2001, PNB filed with respondent
Commissioner of Internal Revenue (CIR) an administrative
claim for refund in the amount of P6,028,594.00, which
were payments made in excess of its income tax liability for
1998.5
As BIR did not act upon PNBÊs claim for refund, PNB, on
March 30, 2001, filed with the Second Division of the Court
of Tax Appeals (CTA Division) a Petition for Review,6 and
prayed that it be refunded or issued a tax credit certificate
in the amount of P6,028,594.00, representing creditable
taxes withheld from PNBÊs income from the sale of real
property, rental income, commissions, and management
fees for the taxable year 1998.
In his Answer,7 the CIR alleged that PNBÊs claim for
refund/tax credit is subject first to an investigation and
that it failed to establish its right to a refund.
After PNB had rested its case, the CIR manifested that
he would not be presenting evidence. The parties were
thereafter required to submit their memoranda.8
On May 19, 2003, the BIR issued in PNBÊs favor Tax
Credit Certificate No. SN 023837 for P4,154,353.42, leaving
a balance of P1,874,240.58 out of PNBÊs total claim of
P6,028,594.00. PNB then informed the CTA Division of
such tax credit certificate, and manifested that its
acceptance was without prejudice to recovering the balance
of its total claim.9
Consequently, the CIR filed a Motion,10 asking that he
be allowed to present evidence on PNBÊs excluded claim.
The CIR argued that
_______________
4 Id., at p. 79.
5 Records (CTA Division), p. 6.
6 Id., at pp. 1-5.
7 Id., at pp. 375-378.
8 Rollo, p. 22.
9 Records (CTA Division), pp. 579-580.
10 Id., at pp. 589-592.
427
VOL. 662, DECEMBER 14, 2011 427

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the amount of P1,874,240.58 was disallowed because it was

not remitted to the BIR, as verified by its Regional
Accounting Division.11
On August 11, 2005, the CTA Division rendered its
Decision,12 the dispositive portion of which reads:
„WHEREFORE, premises considered, the present Petition For

Review is hereby partially GRANTED. Respondent is hereby
ORDERED to REFUND or ISSUE a Tax Credit Certificate in favor
of herein petitioner in the amount of P1,428,661.66, representing
the latterÊs unutilized creditable withholding tax for the year
1998.‰13
The CTA Division held that payments of withholding

taxes for a certain taxable year were creditable to the
payeeÊs income tax liability as determined after it had filed
its income tax returns the following year. The CTA Division
said that since PNB posted net losses, it was not liable for
any income tax and consequently, the taxes withheld
during the course of the taxable year, which was 1998,
while collected legally under Revenue Regulations No. 02-
98, Section 2.57 (B), became untenable and took on the
nature of erroneously collected taxes at the end of that
year. The CTA Division averred that while the right to a
refund is not automatic and must be established by
sufficient evidence, there is nothing in the Tax Code that
would suggest that the actual remittance of the
withholding tax is a condition precedent to claim for a tax
refund. Moreover, the CTA Division added, that the CIR
failed to present the certification to prove his contention of
PNBÊs non-remittance of the disallowed amount. However,
the CTA Division affirmed the disallowance of eight
transactions, amounting to P445,578.92 as they had
already been reported as income for other years, had not
been recorded, or were not supported by pertinent
documents.14
_______________
11 Rollo, p. 86.
12 Id., at pp. 77-92; penned by Associate Justice Olga Palanca-
Enriquez with Associate Justices Juanito C. Castañeda, Jr. and Erlinda
P. Uy, concurring.
13 Id., at p. 91.
14 Id., at pp. 84-90.
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On September 14, 2005, PNB filed a Motion for Partial

Reconsideration,15 asserting its entitlement to be refunded
the amount of P445,578.92, by explaining each transaction
involved and pinpointed by the CTA Division. This however

was still denied by the CTA Division in its Resolution16
dated November 15, 2005, for lack of merit.
Aggrieved, PNB, filed a partial appeal by way of Petition
for Review17 under Section 18 of Republic Act No. 928218
before the CTA En Banc, to review and modify the CTA
DivisionÊs August 11, 2005 Decision. This petition was
received by the CTA En Banc on December 27, 2005, four
days beyond the additional 15 days granted to PNB to file
its petition.
Thus, on January 27, 2006, the CTA En Banc issued a
Resolution19 denying due course and consequently
dismissing PNBÊs petition for the following reasons:
1) The Petition For Review was filed four (4) days late on
December 27, 2005, the reglementary deadline for the timely filing
of such petition being December 23, 2005.
Appeal is a statutory privilege and must be exercised in the
manner provided by law. Therefore, perfection of an appeal in the
manner and within the period prescribed by law is not only
mandatory, but jurisdictional, and non-compliance is fatal having
the effect of rendering the judgment final and executory (Cabellan
vs. Court of Appeals, 304 SCRA 119). Not only that, late appeals
deprives the appellate court of jurisdiction to alter the final
judgment much less entertain the appeal (Pedrosa vs. Hill, 257
SCRA 373).
2) The petition is not accompanied by the duplicate original or
certified true copies of the assailed Decision dated August 11, 2005
and Resolution dated November 15, 2005, in violation of Section 2,
Rule 6 of the Revised
_______________
15 Records (CTA Division), pp. 691-695.
16 Rollo, pp. 93-94.
17 Records (CTA En Banc), pp. 7-16.
18 An act expanding the jurisdiction of the Court of Tax Appeals (CTA),
elevating its rank to the level of a collegiate court with special jurisdiction and
enlarging its membership, amending for the purpose certain sections of
Republic Act No. 1125, as amended, otherwise known as the law creating the
Court of Tax Appeals, and for other purposes.
19 Rollo, pp. 12-14.
429
VOL. 662, DECEMBER 14, 2011 429

Rules of the Court of Tax Appeals, in relation to Section 6, Rule

43 of the Rules of Court.
3) The Petition does not contain an Affidavit of Service, in
violation of Section 13, Rule 13 of the Rules of Court.
In the case of Policarpio vs. Court of Appeals, 269 SCRA 344,
351, the Supreme Court did not hesitate to dismiss the petition for
failure to attach an affidavit of service.
Lastly, Section 7 of Rule 43 of the Rules of Court provides
that:
SEC. 7. Effect of failure to comply with requirements.·The
failure of the petitioner to comply with any of the foregoing
requirements regarding the payment of the docket and other
lawful fees, the deposit for costs, proof of service of the
petition, and the contents of and the documents which should
accompany the petition shall be sufficient ground for the
dismissal thereof.‰
Persistent in its claim, PNB filed a Motion for

Reconsideration with Manifestation of Compliance20 on
February 23, 2006, and answered each ground propounded
by the CTA En Banc in its Resolution.
PNB asserted that its petition was filed on December 23,
2005, which was the last day of the additional 15-day
period granted by the CTA En Banc, via LBC Express, as
shown by the copy of LBC Official Receipt No. 1299035021
dated December 23, 2005. PNB explained that its counsel,
Atty. Flerida P. Zaballa-Banzuela, accompanied by her
administrative assistant, tried to personally file the
petition with the CTA En Banc on December 23, 2005.
However, PNB claimed, that due to heavy traffic, Atty.
Zaballa-Banzuela arrived at the CTA office in Quezon City
at 4:30 p.m., just as the CTA personnel were leaving the
CTA premises in their shuttle bus.22
PNB attached to its Motion the Affidavit23 of
Christopher Sarmiento, the Security Guard who was then
assigned at the CTA main gate. Sarmiento averred that he
did not allow Atty. Zaballa-Banzuela
_______________
20 Id., at pp. 57-69.

21 Records (CTA En Banc), p. 60.
22 Id., at p. 47.
23 Id., at p. 61.
430

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to enter the CTA compound because there was no one left to

receive her document. He also alleged that Atty. Zaballa-
Banzuela even tried to ask some of the CTA personnel who
were on board the CTA shuttle that passed her by, if they
could receive her document, but they declined. This was
corroborated by Atty. Zaballa-BanzuelaÊs administrative
assistant, Macrina J. Cataniag, in her Affidavit,24 also
annexed to PNBÊs Motion.
PNB argued that while its petition was deposited with
LBC Express on December 23, 2005, very well within the
reglementary period, CTA En Banc received it only on
December 27, 2005, as December 24 to 26, 2005 were
holidays.25
Addressing the second ground that the CTA En Banc
used to dismiss the petition, PNB said that its non-
submission of the duplicate original or certified true copy of
the CTA DivisionÊs decision and resolution was not
intended for delay but was „mere inadvertence and
unintentional, but an honest mistake, an oversight, an
unintentional omission, and a human error occasioned by
too much pressure of work.‰26
In compliance, PNB attached to its Motion the Affidavit
of Service27 and certified true copies of the CTA DivisionÊs
decision and resolution supposed to be attached to its
petition before the CTA En Banc.On April 19, 2006, the
CTA En Banc denied PNBÊs motion for lack of merit. The
CTA En Banc held that „absent any cogent explanation [to
not] comply with the rules, the rules must apply to the
petitioner as they do to all.‰28 The CTA En Banc
ratiocinated in this wise:
„It is a jurisprudential rule that the date [of] delivery of pleadings

to a private letter-forwarding agency is not to be considered as the
date of filing thereof in court, and that in such cases, the date of
actual receipt by the court, and not the date of delivery to the
private carrier, is deemed the date of filing of that pleading
(Benguet Electric Corporation, Inc. vs. NLRC, 209
_______________
24 Id., at p. 62.
25 Id., at p. 48.
26 Id., at pp. 48-49.
27 Id., at pp. 66-67.
28 Rollo, p. 9.
431
VOL. 662, DECEMBER 14, 2011 431

SCRA 60-61). Clearly, the present Petition For Review was filed
four (4) days late.
The instant Petition For Review is an appeal from the decision of
the Court in Division. Accordingly, the applicable rule is that the
fifteen-day reglementary period to perfect an appeal is mandatory
and jurisdictional in nature; that failure to file an appeal within the
reglementary period renders the assailed decision final and
executory and no longer subject to review (Armigos vs. Court of
Appeals, 179 SCRA 1; Jocson vs. Baguio, 179 SCRA 550). Petitioner
had thus lost its right to appeal from the decision of this Court in
Division.‰29
The CTA En Banc added:
„Although petitioner subsequently attached to its present

motion, certified true copies of the assailed Decision, dated August
11, 2005, and Resolution, dated November 15, 2005, and the
Affidavit of Service, this did not stop the questioned decision from
becoming final and executory. It has been held that strict
compliance with procedural requirements in taking an appeal
cannot be substituted by „good faith compliance‰. To rule otherwise
would defeat the very purpose of the rules of procedure, i.e., to
„facilitate the orderly administration of justice‰ (Santos vs. Court of
Appeals, 198 SCRA 806, 810; Ortiz vs. Court of Appeals, 299 SCRA
712).‰30
PNB thereafter filed a Petition for Review31 before this

Court on June 16, 2006, which was the last day of the
additional thirty days it was granted32 to file such petition.
In order to convince this Court to allow its petition, PNB
posits the following arguments:
I
THE HONORABLE COURT OF TAX APPEALS EN BANC ERRED
IN FAILING TO CONSIDER THE EXPLANATION SUBMITTED
BY PNB IN ITS MOTION FOR RECONSIDERATION WITH
MANIFESTATION OF COMPLIANCE WITH RESPECT TO THE
FILING OF THE PETITION ON
_______________
29 Id.
30 Id., at p. 10.
31 Id., at pp. 18-38.
32 Id., at p. 16.
432

DECEMBER 23, 2005 (THE DUE DATE FOR FILING THEREOF)

VIA LBC SERVICE INSTEAD OF REGISTERED MAIL WITH
RETURN CARD.
II
THE PROCEDURAL LAPSE OBSERVED BY THE HONORABLE
COURT OF TAX APPEALS SHOULD BE LIBERALLY
CONSTRUED IN THE INTEREST OF SUBSTANTIAL JUSTICE,
AS POSTULATED IN VARIOUS SUPREME COURT DECISIONS.
III
THE PETITION FILED BY PNB BEFORE THE CTA EN BANC
RAISES A MERITORIOUS LEGAL DEFENSE WARRANTING
JUDICIAL RESOLUTION.33
PNB once again narrated the circumstances leading to

its counselÊs decision to mail its petition for review via LBC
Express, a private letter-forwarding company, instead of
registered mail. It claims that since this Court has
repeatedly pronounced the primacy of substantive justice

over technical rules, then its procedural lapses should
likewise be excused, especially since no substantial rights
of the CIR are affected.
This CourtÊs Ruling
The only issue to be resolved here is whether or not this

Court should require the CTA En Banc to give due course
to C.T.A. E.B. No. 145 despite PNBÊs failure to comply with
the formal requirements of the Revised Rules of the Court
of Tax Appeals and the Rules of Court in filing a petition
for review with the CTA En Banc.
Not having been successfully convinced by PNB, we
answer the above issue in the negative.
This Court would like to underscore the fact that PNB
failed to comply with not just one, but three procedural
rules when it filed its petition for review with the CTA En
Banc.
_______________
33 Id., at pp. 24-25.
433
VOL. 662, DECEMBER 14, 2011 433

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Petition was filed late

It is stated under Section 3, Rule 1 of the Revised Rules
of the Court of Tax Appeals that the Rules of Court shall
apply suppletorily. Thus, the manner in which petitions are
filed before the CTA is also covered by the relevant
provision of the Rules of Court, to wit:
„Rule 13. x x x.
xxxx
Sec. 3. Manner of filing.·The filing of pleadings, appearances,
motions, notices, orders, judgments and all other papers shall be
made by presenting the original copies thereof, plainly indicated as
such, personally to the clerk of court or by sending them by
registered mail. In the first case, the clerk of court shall endorse
on the pleading the date and hour of filing. In the second case, the
date of the mailing of motions, pleadings, or any other papers or
payments or deposits, as shown by the post office stamp on the
envelope or the registry receipt, shall be considered as the
date of their filing, payment, or deposit in court. The envelope
shall be attached to the record of the case.‰ (Emphases ours.)
To recall, PNB filed its petition with the CTA En Banc

four days beyond the extended period granted to it to file
such petition. PNB argues that it was filed on time since it
was mailed on the last day of the extended period, which
was on December 23, 2005. It has been established that a
pleading „filed by ordinary mail or by private messengerial
service x x x is deemed filed on the day it is actually
received by the court, and not on the day it was mailed or
delivered to the messengerial service.‰34 In Benguet Electric
Cooperative, Inc. v. National Labor Relations
35
Commission, we said:
„The established rule is that the date of delivery of pleadings to a

private letter-forwarding agency is not to be considered as the date
of filing thereof in court, and that in such cases, the date of actual
receipt by the court, and not
_______________
34 Industrial Timber Corp. v. National Labor Relations Commission, G.R.
No. 111985, June 30, 1994, 233 SCRA 597, 602.
35 G.R. No. 89070, May 18, 1992, 209 SCRA 55.
434

the date of delivery to the private carrier, is deemed the date of

filing of that pleading.‰36
It is worthy to note that PNB already asked for an

additional period of 15 days within which to file its petition
for review with the CTA En Banc. This period expired on
December 23, 2005. Knowing fully well that December 23,
2005 not only fell on a Friday, followed by three consecutive
non-working days, but also belonged to the busiest holiday

season of the year, PNB should have exercised more
prudence and foresight in filing its petition.
It is, however, curious why PNB chose to risk the
holiday traffic in an effort to personally file its petition with
the CTA En Banc, when it already filed a copy to the other
party, the CIR, via registered mail.37 Considering the
circumstances, it would have been more logical for PNB to
send its petition to the CTA En Banc on the same occasion
it sent a copy to the CIR, especially since that day was
already the last day given to PNB to file its petition.
Moreover, PNB offered no justification as to why it sent its
petition via ordinary mail instead of registered mail.
„Service by ordinary mail is allowed only in instances
where no registry service exists.‰38 Rule 13, Section 7
reads:
„Sec. 7. Service by mail.·Service by registered mail shall be

made by depositing the copy in the post office, in a sealed envelope,
plainly addressed to the party or his counsel at his office, if known,
otherwise at his residence, if known, with postage fully pre-paid,
and with instructions to the postmaster to return the mail to the
sender after ten (l0) days if undelivered. If no registry service is
available in the locality of either the sender or the
addressee, service may be done by ordinary mail.‰ (Emphasis
ours.)
Petition was not accompanied by the re-

quired duplicate originals or certified
true copies of the decision and resolution
being assailed, and Affidavit of Service
_______________
36 Id., at pp. 60-61.
37 Records (CTA En Banc), p. 66.
38 Bank of the Philippine Islands v. Far East Molasses Corporation,
G.R. No. 89125, July 2, 1991, 198 SCRA 689, 701.
435
VOL. 662, DECEMBER 14, 2011 435

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The following provisions are instructive:

Section 2, Rule 6 of the Revised Rules of the Court of
Tax Appeals:
„SEC. 2. Petition for review; contents.·The petition for review

shall contain allegations showing the jurisdiction of the Court, a
concise statement of the complete facts and a summary statement
of the issues involved in the case, as well as the reasons relied upon
for the review of the challenged decision. The petition shall be
verified and must contain a certification against forum shopping as
provided in Section 3, Rule 46 of the Rules of Court. A clearly
legible duplicate original or certified true copy of the
decision appealed from shall be attached to the petition.‰
(Emphasis supplied.)
Section 4(b), Rule 8 of the Revised Rules of the Court of

Tax Appeals:
„Sec. 4(b) An appeal from a decision or resolution of the Court in

Division on a motion for reconsideration or new trial shall be taken
to the Court by petition for review as provided in Rule 43 of the
Rules of Court. The Court en banc shall act on the appeal.‰
Sections 6, Rule 43 of the Rules of Court:
„Sec. 6. Contents of the petition.·The petition for review shall

(a) state the full names of the parties to the case, without
impleading the court or agencies either as petitioners or
respondents; (b) contain a concise statement of the facts and issues
involved and the grounds relied upon for the review; (c) be
accompanied by a clearly legible duplicate original or a
certified true copy of the award, judgment, final order or
resolution appealed from, together with certified true copies of
such material portions of the record referred to therein and other
supporting papers; and (d) contain a sworn certification against
forum shopping as provided in the last paragraph of section 2, Rule
42. The petition shall state the specific material dates showing that
it was filed within the period fixed herein.‰ (Emphasis ours.)
This Court has already upheld the mandatory character

of attaching duplicate originals or certified true copies of
the assailed decision
436

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to a petition for review.39 Moreover, pursuant to Section 7,

Rule 43 of the Rules of Court, non-compliance with such
mandatory requirement is a sufficient ground to dismiss
the petition, viz.:
„Sec. 7. Effect of failure to comply with requirements.·The

failure of the petitioner to comply with any of the foregoing
requirements regarding the payment of the docket and other lawful
fees, the deposit for costs, proof of service of the petition, and
the contents of and the documents which should accompany
the petition shall be sufficient ground for the dismissal
thereof.‰ (Emphasis ours.)
Anent the failure to attach the Affidavit of Service,

Section 13, Rule 13 of the Rules of Court provides:
„Sec. 13. Proof of service.·Proof of personal service shall consist

of a written admission of the party served, or the official return of
the server, or the affidavit of the party serving, containing a full
statement of the date, place and manner of service. If the service is
by ordinary mail, proof thereof shall consist of an affidavit of the
person mailing of facts showing compliance with section 7 of this
Rule. If service is made by registered mail, proof shall be made by
such affidavit and the registry receipt issued by the mailing office.
The registry return card shall be filed immediately upon its receipt
by the sender, or in lieu thereof the unclaimed letter together with
the certified or sworn copy of the notice given by the postmaster to
the addressee.‰
Although the failure to attach the required affidavit of

service is not fatal if the registry receipt attached to the
petition clearly shows service to the other party,40 it must
be remembered that this was not the only rule of procedure
PNB failed to satisfy. In Suarez v. Judge Villarama, Jr.41
we said:
„It is an accepted tenet that rules of procedure must be faithfully
followed except only when, for persuasive and weighting reasons,

they may be relaxed to relieve a litigant of an injustice
commensurate with his failure to
_______________
39 Spouses Lim v. Uni-Tan Marketing Corporation, 427 Phil. 762, 770-771;
377 SCRA 491, 498 (2002).
40 Philippine Amusement and Gaming Corporation v. Angara, 511 Phil. 486,
498; 475 SCRA 41, 52 (2005).
41 G.R. No. 124512, June 27, 2006, 493 SCRA 74.
437
VOL. 662, DECEMBER 14, 2011 437

comply with the prescribed procedure. Concomitant to a liberal

interpretation of the rules of procedure, however, should be an effort
on the part of the party invoking liberality to adequately explain his
failure to abide by the rules.‰42
This Court agrees with the CTA En Banc that PNB has
not demonstrated any cogent reason for this Court to take
an exception and excuse PNBÊs blatant disregard of the
basic procedural rules in a petition for review.
Furthermore, the timely perfection of an appeal is a
mandatory requirement. One cannot escape the rigid
observance of this rule by claiming oversight, or in this
case, lack of foresight. Neither can it be trifled with as a
„mere technicality‰ to suit the interest of a party. Verily, the
periods for filing petitions for review and for certiorari are
to be observed religiously. „Just as [the] losing party has
the privilege to file an appeal within the prescribed period,
so does the winner have the x x x right to enjoy the finality
of the decision.‰43 In Air France Philippines v. Leachon,44
we held:
„Procedural rules setting the period for perfecting an appeal or

filing an appellate petition are generally inviolable. It is doctrinally
entrenched that appeal is not a constitutional right but a mere
statutory privilege. Hence, parties who seek to avail of the privilege
must comply with the statutes or rules allowing it. The
requirements for perfecting an appeal within the reglementary
period specified in the law must, as a rule, be strictly followed. Such

requirements are considered indispensable interdictions against
needless delays, and are necessary for the orderly discharge of the
judicial business. For sure, the perfection of an appeal in the
manner and within the period set by law is not only mandatory, but
jurisdictional as well. Failure to perfect an appeal renders the
judgment appealed from final and executory.‰45
While it is true that the Court may deviate from the

foregoing rule, this is true only if the appeal is meritorious
on its face. The Court has not hesitated to relax the
procedural rules in order to serve and achieve substantial
justice. „In the circumstances obtaining in this
_______________
42 Id., at pp. 83-84.
43 Cuevas v. Bais Steel Corporation, 439 Phil. 793, 805; 391 SCRA
192, 194 (2002).
44 G.R. No. 134113, October 12, 2005, 472 SCRA 439.
45 Id., at pp. 442-443.
438

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case however, the occasion does not warrant the desired

relaxation.‰46 PNB has not offered any meritorious legal
defense to justify the suspension of the rules in its favor.
The CTA Division has taken into consideration all of the
evidence submitted by the PNB, and actually allowed it a
refund of P1,428,661.66, in addition to the P4,154,353.42
the BIR already gave. The CTA Division explained why it
disallowed the remaining balance of P445,578.92 in its
Decision dated August 11, 2005. When PNB moved to
reconsider this decision, it did not offer the CTA any other
evidence or explanation aside from the ones the CTA
Division had already evaluated. Nevertheless, the CTA
carefully considered and deliberated anew PNBÊs grounds,
albeit they found them lacking in merit. Thus, it cannot be
said that PNB was deprived of its day in court, as in fact, it
was given all the time it had asked for.

While PNB may believe that it has a meritorious legal
defense, this must be weighed against the need to halt an
abuse of the flexibility of procedural rules. It is well
established that faithful compliance with the Rules of
Court is essential for the prevention and avoidance of
unnecessary delays and for the organized and efficient
dispatch of judicial business.47
WHEREFORE, the petition is hereby DENIED for lack
of merit.
SO ORDERED.
Corona (C.J., Chairperson), Bersamin, Del Castillo and

Villarama, Jr., JJ., concur.
Petition denied.
Note.·The timeliness of a petition depends not only on

its seasonable filing but also on the prompt service of copy
thereof on the adverse party and the Regional Trial Court.
(Muñoz vs. People, 548 SCRA 473 [2008])
··o0o··
_______________
46 Id., at p. 443.
47 Saint Louis University v. Cordero, 478 Phil. 739; 434 SCRA 575
(2004).
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SUPREME COURT REPORTS ANNOTATED VOLUME 662 5/24/21, 10:25 PM

G.R. No. 172458. December 14, 2011.*

PHILIPPINE NATIONAL BANK, petitioner, vs.

Civil Procedure; Pleadings and Practice; A pleading filed by

VOL. 662, DECEMBER 14, 2011 425

Philippine National Bank vs. Commissioner of Internal Revenue

petition for review. Furthermore, the timely perfection of an appeal

PETITION for review on certiorari of the resolutions of the

of Internal Revenue (BIR) its Tentative Return for 1998

426 SUPREME COURT REPORTS ANNOTATED

ule of Creditable Withholding Taxes for 1998. PNB likewise

VOL. 662, DECEMBER 14, 2011 427

the amount of P1,874,240.58 was disallowed because it was

„WHEREFORE, premises considered, the present Petition For

The CTA Division held that payments of withholding

428 SUPREME COURT REPORTS ANNOTATED

On September 14, 2005, PNB filed a Motion for Partial

involved and pinpointed by the CTA Division. This however

VOL. 662, DECEMBER 14, 2011 429

Rules of the Court of Tax Appeals, in relation to Section 6, Rule

Persistent in its claim, PNB filed a Motion for

20 Id., at pp. 57-69.

430 SUPREME COURT REPORTS ANNOTATED

to enter the CTA compound because there was no one left to

„It is a jurisprudential rule that the date [of] delivery of pleadings

VOL. 662, DECEMBER 14, 2011 431

The CTA En Banc added:

„Although petitioner subsequently attached to its present

PNB thereafter filed a Petition for Review31 before this

432 SUPREME COURT REPORTS ANNOTATED

DECEMBER 23, 2005 (THE DUE DATE FOR FILING THEREOF)

PNB once again narrated the circumstances leading to

repeatedly pronounced the primacy of substantive justice

This CourtÊs Ruling

The only issue to be resolved here is whether or not this

VOL. 662, DECEMBER 14, 2011 433

Petition was filed late

To recall, PNB filed its petition with the CTA En Banc

„The established rule is that the date of delivery of pleadings to a

434 SUPREME COURT REPORTS ANNOTATED

the date of delivery to the private carrier, is deemed the date of

It is worthy to note that PNB already asked for an

non-working days, but also belonged to the busiest holiday

„Sec. 7. Service by mail.·Service by registered mail shall be

Petition was not accompanied by the re-

VOL. 662, DECEMBER 14, 2011 435

The following provisions are instructive:

„SEC. 2. Petition for review; contents.·The petition for review

Section 4(b), Rule 8 of the Revised Rules of the Court of

„Sec. 4(b) An appeal from a decision or resolution of the Court in

Sections 6, Rule 43 of the Rules of Court:

„Sec. 6. Contents of the petition.·The petition for review shall

This Court has already upheld the mandatory character

436 SUPREME COURT REPORTS ANNOTATED

to a petition for review.39 Moreover, pursuant to Section 7,

„Sec. 7. Effect of failure to comply with requirements.·The

Anent the failure to attach the Affidavit of Service,

„Sec. 13. Proof of service.·Proof of personal service shall consist

Although the failure to attach the required affidavit of