Let's make the long story short. Here is what happened:
- IntelliJ 12 CE downloaded and installed
- Latest Java 1.7/1.8 downloaded and installed
- JDK was setup to make and run the project
I faced the following strange error:
Error: java: System Java Compiler was not found in classpath
This was despite of the fact that I had Java 1.7/1.8 fully installed and had no problems working with it through the terminal.