CONSUNJI-LED Semirara Mining and Power Corp. has won a 13-year-long bid for a P27.34-million tax refund on its diesel importation after the Supreme Court ruled in favor of the company and denied a Bureau of Internal Revenue (BIR) appeal.
In a disclosure on Thursday, Semirara said that it received a copy of the entry of judgment of its case against the BIR and other parties.
The dispute began on May 21, 2013 when the company was granted a Certificate of Qualification for Tax Exemption by the Department of Energy under Presidential Decree 972 for importing diesel for its coal operations.
Despite this, the BIR collected value-added tax (VAT) on Semirara’s first shipment of 6,16,367 liters under Revenue Regulation 2-2012 (RR No. 2-2012). The regulation required exempt companies to pay VAT first and claim a refund later.
Semirara paid “under protest” and challenged the rule. On Oct. 3, 2013, it filed a petition for declaratory relief with a regional trial court seeking to enjoin the BIR and the Bureau of Customs (BOC) from imposing an advance payment of VAT on the importation of diesel fuel for the company’s own use and consumption.
The BIR issued RR 2-2012 for the purpose of curtailing smuggling and Semirara contested the application of said regulation, arguing that it effectively diminished the exemption granted. It was then granted a 20-day temporary restraining order on Oct. 30, 2013.
The following month, the court issued a preliminary injunction against the BIR, BOC and the Department of Finance in regard to the implementation of the regulation against Semirara.
The case was elevated to the Court of Tax Appeals (CTA), which ruled on July 27, 2018 that Semirara was entitled to a refund of P27,340,714. This decision was challenged by the BIR before the Supreme Court.
Last month, Semirara said it received a notice of judgment dated May 19, 2026 of the Supreme Court’s decision denying BIR’s petition for review and affirming the CTA ruling granting the company’s claim for a refund or issuance of a tax credit certificate in the amount of P27.34 million.
Semirara shares surged P0.56, or 3.09 percent, to close at P18.70 each on Thursday amid a 1.30-percent gain for the benchmark Philippine Stock Exchange index.
