DYNO-NOBEL PHILIPPINES, INC. v. COMMISSIONER OF INTERNAL REVENUE (Consolidated with case no. 5952)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY DYNO-NOBEL PHILIPPINES, INC., Petitioner, -versus- C.T.A. CASE NOS. 5899 & 5952 COMMISSIONER OF INTERNAL Promulgated: REVENUE, _ _O_CT_16_20_01~=7"-:#'2~~,1"-'(~J{~~~ Respondent. x-----------------------------------------------------------x DECISION Before Us is a consolidated case involving claims for the refund or issuance of tax credit certificates of alleged excess input value-added taxes paid by the Petitioner covering the following periods: CTA Case No. Period Covered/Quarter Amount 5899 April 1 to June 30, 1997/2"d Qtr. P845,475.17 5952 1,521 ,273.34 5952 July 1 to September 30, 1997/3'"d Qtr. 2,363,305.18 October 1 to December 31, 1997I 4111 Qtr. Petitioner is a domestic corporation duly organized and existing under and by virtue of Philippine laws with principal office located at Bo . Buntis, Bacong, Negros Oriental. It is principally engaged in the business of manufacturing, purchasing, importing, exporting, selling at wholesale and otherwise, dealing in explosives, nitroglycerine, dynamite, blasting powder and other similar substances as well as to engage in the 12 28

DECISION- CTA CASE NOS. 5899 & 5952 PAGE2 business of purchasing, developing, compounding, distributing, at wholesale, chemical materials and substances. It is duly registered with the Board of Investments ~BOI) as an exporter of chemical products under Certificate of Registration No. 77-516 . It is likewise, registered with the Bureau of Internal Revenue (BIR) as a VAT taxpayer under RDO Control No . 97-790- 009791 dated June 18, 1997. Petitioner filed its VAT quarterly returns for the 2nd, 3rd and 4th quarters of 1997 on the following dates: Quarter (Period Covered) Date Filed 2nd quarter (April1, 1997 to June 30, 1997) July21, 1997 October 20, 1997 yo quarter (July 1, 1997 to September 30, 1997) January 20, 1998 41h quarter (October 1, 1997 to December 31 , 1997) On May 27, 1999, Petitioner filed the amended returns for the 2nd, 3rd and 4th quarters of 1997 covering the period from April 1, 1997 to December 31, 1997 which declared the following: QUARTER EXHIBIT DOMESTIC IMPORTATION VAT INVOLVED PURCHASES OF GOODS INPUT TAX 2ND QUARTER Gp 3,459 ,301. 73 p 2,995,450.00 p 845,475.17 3RD QUARTER H 8,910 , 108 .98 6,282 ,624.40 1,521 ,273.34 4TH QUARTER 18 ,023 ,105 .93 5,609 ,950 .75 2 ,363 ,305 . 18 TOTAL p 30,412,516.64 p 14,888,025.15 p 4, 730,053.69 On June 23 , 1999, an application for VAT credits was filed by Petitioner with the One Stop Shop Inter-Agency Tax Credit and Duty Drawback Center of the Department of 12 29

DECISION- CTA CASE NOS. 5899 & 5952 PAGE3 Finance (DOF) corresponding to its creditable input tax amounting to P845,475.17 for the period covering April1, 1997 to June 30, 1997 (Exhibit "K-1"). On July 21, 1999, two applications for VAT credits were filed with the One Stop Shop Inter-Agency Tax Credit and Duty Drawback Cti1ter of the DOF relating to its creditable input tax amounting to Pl,521,273.34 and P2,363,305.18 covering the perio?s July 1, 1997 to September 30, 1997 and October 1, 1997 to December 31, 1997, respectively (Exhibits "L-1" and "M-1 "). However, since Respondent neither approved nor granted Petitioner's claim for refund or application for tax credit of its unapplied VAT input taxes for the 2nd, 3rd and 4th quarters of 1997 covering the period from April 1, 1997 to December 31, 1997 in the aggregate amount of P4,730,053.51 , and in order to toll the running of the prescriptive period, Petitioner filed the corresponding Petitions for Review with this Court on June 30, 1999 docketed as CTA Case No. 5899 and October 11 , 1999 docketed as CTA Case No. 5952. Respondent, in his Answer to the Petitions for Review maintained the following Special and Affirmative defenses: SPECIAL AND AFFIRMATIVE DEFENSES CTA CASE NO. 5899 "4. He reiterates and repleads the preceeding paragraphs of this answer as part of his Special and Affirmative Defenses. 5. Petitioner's alleged claim for refund is subject to administrative routinary investigation/examination by the respondent's Bureau. 1230

DECISION- CTA CASE NOS. 5899 & 5952 PAGE4 6. Petitioner must prove that it has complied with the requirements provided under Section 6 (a) of Revenue Regulations No. 6-97 and that the VAT input taxes ofP845,475.17 allegedly paid on its purchase oftaxable goods and services were attributable to its zero-rated sales and finally , the input tax has not been applied against any output tax . 7. It is incumbent upon petitioner to show that its claim for tax credit or refund of alleged unutilized input taxes was filed within two (2) years after the close of the taxable quarter when the sales were made in accordance with Section 4.106-1 ofRev. Reg. No. 7-95. 8. Petitioner must prove that the input taxes paid on its domestic purchase of taxable goods and services were made in the course of its trade or business and supported by invoices or receipts in pursuance to Section 4.104-5 ofRev. Reg. No. 7-95. 9. Petitioner failed to show that the input taxes on its importation of taxable goods are supported with import entry or other equivalent documents which show that it actually paid the corresponding VAT imposed in pursuance to Section 4.104-5 (b) of Rev. Reg. No. 7-95. 10. Pursuant to Section 4.100-2 in relation to Section 4.102-1 and Section 4.102-2 of Rev. Reg. No. 7-95, petitioner must prove that its export sales of taxable goods and services to persons doing business outside the Philippines, are paid for in acceptable foreign currency, actually or constructively remitted to the Philippines and acco unted for in acco~�dance with the rules and regulations of the Central Bank of the Philippines. . ~� 12 31

DECISION- CTA CASE NOS. 5899 & 5952 PAGES 11 . It is incumbent upon petitioner to show that it has complied with the provisions under Sections 204(c) and 230 of the 1993 Tax Code. Otherwise, its failure to prove the same is fatal to the claim for refund. 12. Claims for refund are construed strictly against the claimant for the same partake the nature of exemption from taxation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA 95) and as such, they are looked upon with disfavor (Western Minolco Corp. vs . Commissioner of Internal Revenue, 124 SCRA 1211) CTA CASE NO. 5952 "5. Taxes paid and collected are presumed to have been made m accordance with law, hence, not refundable. 6. Petitioner's claim for tax credit or refund of alleged unutilized VAT input taxes paid for the 3rd quarter of 1997 has already prescribed pursuant to Section 4.106-1 of Rev. Reg. No. 7-95. 7. Petitioner failed to prove the following: a. Section 4.100-2 in relation to Section 4.102-1 and Section 4.102-2 ofRev. Reg. No. 7-95. b. Section 4.104-5 of Rev. Reg. No.7-95. 8. Assuming but without admitting the fact that petitioner is entitled to tax refund, it is incumbent upon the latter to show that it has complied with the provisions under Sections 204 in relation to Section 230 (now 229) of the Tax Code. Otherwise, its failure to prove the same is fatal to its claim for refund. 12 32

DECISION- CTA CASE NOS. 5899 & 5952 PAGE6 To support its claim, Petitioner submitted the fo ll owing documents: 1. Certificate of Registration issued by the BOI (Ex hibit A) 2 . Certificate of Registration issued by BIR (Exhibit B) 3. Quarterly VAT Returns and Amended Quarterl y VAT Returns for taxable years 1997 & 1998 (Exhibits C to J) 4. Three applications for VAT credits for the following periods April 1, 1997 to June 30, 1997, July 1, 1997 to September 30, 1997 and October 1, 1997 to December 31 , 1997, fil ed with the One Stop Shop Inter-Agency Tax Credit and Duty Drawback Center of the DOF (Exhibits K, L & M) 5. Summary of Input Tax on Local Purchases for the period April 1, 1997 to December 31 , 1997 (Exhibit N) 6. Summary of Input Tax on Importations for the period April 1, 1997 to December 31 , 1997 (Exhibit 0) 7. Schedule of export Sales for the period April 1, 1997 to December 31 , 1997 (Exhibit P) 8. Input Tax Supports for the periods April I , 1997 to June 30, 1997, July 1, 1997 to September 30, 1997, and October I , 1997 to December 31 , 1997 (Exhibits Q, R, S) 9. Input Tax Supports-Importations for the p�:ri ods April 1, 1997 to December 31 , 1997 (Exhibits T-1 to T-140) 10. Export Sales Invoices for the period April 1, 1997 to December 31 , 1997 (Exhibit U-1 to U-18) ;.� 1 23 3

DECISION- CTA CASE NOS. 5899 & 5952 PAGE 7 11. Export Documents for the peri od April 1, 19 ~ 7 to December 31 , 1997 (Exhibits V-1 to V-146) 12. Bank Certifications of Inward Remittances for the period April 1, 1997 to December 31 , 1997 (Ex hibits W-1 to W-6) 13. SGV Report dated May 24, 199 7 (Ex hibit X) Respondent, on the other hand , fail ed to present any evidence to support his Special and Affirmative defenses. The sole issue to be resolved in these consolidated cases is whether or not Petitioner is entitled to the tax refund or issuance o f tax credit certi+icate in the aggregate amount of P4,730,053.51 allegedly representing unutili zed creditabl e input VAT taxes pertaining to domestic purchases of goods and services and importation of capital goods for the quarters covering the period April I, 1997 to December 31 , 1997. We resolve in favor of the Petiti oner. Quoted hereunder are the foll owin g provisions of the Tax Code, as amended, from which Petitioner basically anchored its claim , viz: SEC. 104. Tax Credits. - x x x (b) Excess output or input tax . - If at the end of any taxable quarter the output tax exceeds the input tax . th e ex cess shall be paid by the VAT-registered person. If th e input tax exceeds the output tax, the excess shall be carried over to the succeedin g quarte rs. Any input tax attributable to the purchase of capital goods or to zero-rated sales by a VAT-registered person may at his option be refunded or credited against other internal revenue taxes, subject to the provi sions o f Secti on I06. XX X X XX X XX Section 106. Refunds or tax credits ofcreditable input tax. - (a) Any VAT-registered person , whose sales are zero-rated or effectively zero-rated , may, within two (2) years after the close of the 12 34

DECISION- CTA CASE NOS. 5899 & 5952 PAGES taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extel.t that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 100(a)(2)(A)(i),(ii) and (b) and Section 102(b)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further, That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods or properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales. XXX XXX XXX Section 100 of the same Code defined export sales. to wit: Section 100. Value-added tax on sale ofgoods or properties. - (a) Rate and base oftax. - x x x (2) The following sales by VAT-registered persons shall be subject to 0%: (A) Export sales. - The term 'export sales' means: (i) The sale and actual shipment of goods from the Philippines to a foreign country, irrespective of any shipping arrangement that may be agreed upon which may influence or determine the transfer of ownership of the goods so exported and paid for in acceptable foreign currency or its equivalent in goods or services, and accounted for in accordance with the rules and regulations of the Bangko Sei tral ng Pilipinas (BSP). XXX XXX XXX In order that a claim for refund of input VAT be granted, Petitioner must comply with the following requirements as provided in Section 106 of the National Internal Revenue Code, to wit: 1. That it is a VAT-registered person; 12 35

DECISION- CTA CASE NOS. 5899 & 5952 PAGE9 2. That its sales are zero-rated; 3. That the administrative claim for refund is seasonably filed; 4. That the input taxes claimed were attributable to zero-rated sales and were not applied against output tax liability; and 5. That foreign currency exchange proceeds had been duly accounted for m accordance with the Regulations of the Bangko Sentral ng Pilipinas. A careful review of all the documentary evidence presented reveals that Petitioner has substantially complied with all the foregoing requirements. Respondent, however, contended that the claim corresponding to the VAT return for the 3rd quarter of 1997 has already prescribed. We disagree with his contention. The 3rd quarter VAT return covering the period July 1, 1997 to September 30, 1997 was filed with the BIR on October 20, 1997 (see Exhibit "D"). The application for refund was fi led with the One Stop Shop Inter-Agency Tax Credit and Duty Drawback Center of the DOF on July 21, 1999, while the Petition for Review was filed with this Court on October 11, 1999. Thus, filing of the claims for refund of the said input taxes, both administrative and judicial, were well-within the two-year prescriptive period. Based on the report of the independent CPA commissioned by this Court, the input taxes claimed pertain to Petitioner's export and local sales. (Exhibit X) For the period April 1, 1997 to December 31, 1997, Petitioner obtained the following export and domestic sales, viz: QUARTER EXHIBIT EXPORT DOMESTIC TOTAL INVOLVED SALES SALES SALES 2ND QUARTER G p 109,169,413.00 p 6,985,360.91 p 116,154,773.91 3RD QUARTER 120,863,228.01 6 ,938 ,088.88 ' 127,801 ,316.89 4TH QUARTER H 143 ,795,964 .33 10,657,996.45 154 ,453,960.78 12 36

DECISION- CTA CASE NOS. 5899 & 5952 PAGEIO TOTAL p 373,828,605.34 p 24,581,446.24 p 398,410,051.58 The export sales were duly substantiated with export documents such as Sales Invoice, Shipping Invoice, Bill of Lading, Export Declaration, Customs Inspector's Certificate of Loading and telegram for transmission (Exhibits V-1 to V-146) Moreover, the inward remittances of the foreign currency proceeds of Petitioner's export sales were substantiated by the Certifications issued by the Metropolitan Bank & Trust Company and Citibank (Exhibits W-2 to W-6). To support its claim for refund of its unutilized creditable input taxes, Petitioner submitted various invoices and official receipts. (Exhibits Q-1 to Q-612, R-1 to R-599 & S-1 to S-412) Moreover, in the amended quarterly VAT returns, Petitioner deducted the amount of input taxes claimed for each of the respective calendar quarter under the caption : "Less: ANY REFUND/TCC CLAIMED".(Exhibits G, H & I) Hence, the total claimed unutilized creditable VAT input taxes was no longer carried over to the succeeding quarter, the 151 quarter of taxable year 1998 (Exhibits J & J-3). However, the input taxes in the amount of P348,064.70 were disallowed by the independent CPA for the reason that these were not properly substantiated for VAT purposes. (Exhibit X) A further verification conducted by this Court disallowed the amount of P94,866.32 for failure to conform with 1he substantiation requirements prescribed in Section 4.104-5 of Revenue Regulations No. 7-95 (see Annex A). In conclusion, this Court is inclined to grant Petitioner's claim, for refund of unutilized input VAT credits in the reduced amount of Pl ,828,977.87 computed as follows: 12 37

DECISION- P4,730,053 .51 CTA CASE NOS. 5899 & 5952 PAGE II P348,064 .70 442,931 .02 94,866.32 P4,287, 122.49 Amount Claimed P698,536 .09 2,458,144.62 Less: Disallowances 693,808.89 PI .828.977.87 (a) Per SGV's verification (Exh. X) ~1,065,799 . 64 (b) Per Court's further verification (Annex A) Allowable Input Tax Less: Output Tax Liabilities 2"d Quarter 1997 3'd Quarter 1997 4'" Quarter 1997 Amount Refundable WHEREFORE, in view of all the foregoing , Respondent is hereby ORDERED to REFUND or ISSUE A TAX CREDIT CERTIFICATE in favor of Petitioner the amount of P1,828,977.87 representing the latter's unutilized VAT input taxes for the period April 1, 1997 to December 31, 1997. SO ORDERED. WE CONCUR: c:L::~- Cl~ ERNESTO D. ACOSTA Presiding Judge QAcwtdfr (? .C~ASdTAaNE/D~JQR.. OfiiANITO C. Associate Judge � 1238

DECISION- CTA CASE NOS . 5899 & 5952 PAGEI2 CERTIFICATION I hereby certify that the above decision was reached after due consultation with the members of the Court of Tax Appeals in accordance with Section 13, Article VIII of the Constitution. ~~-~ ERNESTO D. ACOSTA Presiding Judge 12 39

DYNO NOBEL PHILIPPINES, INC. ANNEXA SCHEDULE OF COURT'S DISALLOWANCE FOR THE PERIOD APRIL 1, 1997 TO DECEMBER 31, 1997 QUARTER REFERENCE INVOICE INVOICE INPUT INVOLVED AMOUNT TAX SUPPLIER EXHIBIT NO. DATE (a) Invoice/official receipt not In the name of Dyno Nobel Philippines, Inc. CIPRES STEVEDORING 3RD QTR. R-415 628306 9/17/97 13.18 1.20 SMART COMMUNCATIONS 3RD QTR. R-573 609260 9/23/97 1,780.57 161 .87 SMART COMMUNICATIONS 3RD QTR. R-133 167356 6/27/97 SMART COMMUNICATIONS 3RD QTR. R-134 286333 8/8/97 330.00 30 .00 SMART COMMUNICATIONS 3RD QTR. R-136 286332 8/8/97 14.402 .30 1,309.30 SMART COMMUNICATIONS 3RD QTR. R-138 286067 7/31/97 SMART COMMUNICATIONS 3RD QTR. R-140 286066 7/31/97 3,943 .17 357.47 SMART COMMUNICATIONS 3RD QTR. R-142 286065 7/31/97 2,104.96 191 .36 SMART COMMUNICATIONS 3RD QTR. R-144 286064 7/31/97 6.429 .17 584 .47 SMART COMMUNICATIONS 3RD QTR. R-146 286068 SMART COMMUNICATIONS 3RD QTR. R-148 286060 ~/31/97 415 . 14 37 .74 SMART COMMUNICATIONS 3RD QTR. R-342 608515 4,822 .95 438.45 7/31/97 1,327.15 120.65 SUBTOTAL 9/1/97 5,800.85 527 .35 p 918 .50 83 .50 42,287.94 p 3,843.36 (b) Invoice without date A VESCO 2ND QTR. Q-218 54290 p 492.00 p 44.73 (c) Invoice/official receipt not within the period of claim LEHNKERING MONTAN 2ND QTR. T-26 62997541 3/5/97 p 2,940.00 p 294 .00 CIPRES STEVEDORING 2ND QTR. Q-241 615767 3/14/97 34 .76 3.16 DUMAGUETE GOLDEN RULE 2ND QTR. Q-448 47065 2/18/97 DUMAGUETE GOLDEN RULE 2ND QTR. Q-449 46916 1/4/97 1,473.00 133.91 DUMAGUETE GOLDEN RULE 2ND QTR. Q-450 46924 1/6/97 2,800.00 25 4 .55 DUMAGUETE GOLDEN RULE 2ND QTR. Q-455 47151 3/19/97 DUMAGUETE GOLDEN RULE 2ND QTR. Q-454 46943 ,/14/97 540 .00 49 .09 DUMAGUETE GOLDEN RULE 2ND QTR. Q-457 47084 2/28/97 298 .20 27 .11 DUMAGUETE GOLDEN RULE 2ND QTR. Q-456 46857 12/6/96 192.00 17.45 DUMAGUETE GOLDEN RULE 2ND QTR. Q-458 46940 1/14/97 280 .00 25.45 DUMAGUETE GOLDEN RULE 2ND QTR. Q-457 46942 1/14/97 285 .00 25 .91 DUMAGUETE GOLDEN RULE 2ND QTR. Q-458 46945 1/14/97 DUMAGUETE GOLDEN RULE 2ND QTR. Q-459 46998 1/29/97 68 .75 6.25 DUMAGUETE GOLDEN RULE 2ND QTR. Q-459 47118 3/7/97 175.00 15.91 DUMAGUETE GOLDEN RULE 2ND QTR. Q-460 47033 2/8/97 261.90 23.81 DUMAGUETE GOLDEN RULE 2ND QTR. Q-461 47005 1/31/97 270 .00 24 .55 DUMAGUETE GOLDEN RULE 2ND QTR. Q-460 46941 1/14/97 6.55 DUMAGUETE GOLDEN RULE 2ND QTR. Q-462 46995 1/29/97 72.00 40 .00 DUMAGUETE GOLDEN RULE 2ND QTR. Q-461 46990 1/29/97 440 .00 7.36 DUMAGUETE GOLDEN RULE 2ND QTR. Q-463 47052 2/13/97 32 .73 DUMAGUETE GOLDEN RULE 2ND QTR. Q-462 47051 2/13/97 81 .00 43 .64 DUMAGUETE GOLDEN RULE 2ND QTR. Q-464 47007 1/31/97 360 .00 10.91 DUMAGUETE GOLDEN RULE 2ND QTR. Q-464 47049 2/13/97 480 .00 7.09 DUMAGUETE GOLDEN RULE 2ND QTR. Q-465 47121 3/7/97 120.00 6.73 20 .63 78.00 6.36 74.00 10 .91 226 .90 70 .00 120 .00 1 of 3 1240

DUMAGUETE GOLDEN RULE 2ND QTR. Q-465 47085 2/28/97 420 .00 38 .19 DUMAGUETE GOLDEN RULE 2ND QTR. Q-466 47089 3/3/97 162.00 14.73 DUMAGUETE GOLDEN RULE 2ND QTR. Q-466 47147 3/19/97 180.00 16.36 DUMAGUETE GOLDEN RULE 2ND QTR. Q-467 47120 3/7/97 DUMAGUETE GOLDEN RULE 2ND QTR. Q-467 47083 2/28/97 60.00 5.45 DUMAGUETE GOLDEN RULE 2ND QTR. Q-468 47059 .' /14/97 144 .00 13.09 DUMAGUETE GOLDEN RULE 2ND QTR. Q-469 47072 2/24/97 330.00 30 .00 DUMAGUETE GOLDEN RULE 2ND QTR. Q-468 47073 2/24/97 DUMAGUETE GOLDEN RULE 2ND QTR. Q-470 4707 4 2/24/97 65 .00 5.91 DUMAGUETE GOLDEN RULE 2ND QTR. Q-469 47078 2/25/97 390.00 35.45 DUMAGUETE GOLDEN RULE 2ND QTR. Q-471 470 86 2/28/97 DUMAGUETE GOLDEN RULE 2ND QTR. Q-470 47119 3/7/97 30 .00 2.73 DUMAGUETE GOLDEN RULE 2ND QTR. Q-472 47117 3/7/97 375.00 34 .09 DUMAGUETE GOLDEN RULE 2ND QTR. Q-471 47135 3/13/97 324.00 29.45 DUMAGUETE GOLDEN RULE 2ND QTR. Q-473 47136 3/ 13/97 DUMAGUETE GOLDEN RULE 2ND QTR. Q-472 47146 3/7/97 90.00 8.18 DUMAGUETE GOLDEN RULE 2ND QTR. Q-473 47145 3/19/97 30 .50 2.77 DUMAGUETE GOLDEN RULE 2ND QTR. Q-484 47090 3/3/97 50 .00 4.55 DUMAGUETE GOLDEN RULE 2ND QTR. Q-483 47171 3/25/97 30.00 2.73 GRAND ASIAN SAlES 2ND QTR. Q-295 24368 3/11/97 375.00 34 .09 GRAND ASIAN SALES 2ND QTR. Q-296 24401 3/7/97 380 .00 34 .55 KINGBRO SCIENTIFICS 2ND QTR. Q-306 5766 12/5/96 387.00 35.18 LBC EXPRESS 2ND QTR. Q-308 3075391 1/2/97 450 .00 40 .91 LBC EXPRESS 2ND QTR. Q-307 3075737 93 ,600 .00 8,509 .09 LBC EXPRESS 2ND QTR. Q-308 2831671 ~/21/97 93 ,600 .00 8,509 .09 LBC EXPRESS 2ND QTR. Q-308 2573791 1,116.00 101.45 LBC EXPRESS 2ND QTR. Q-308 3075138 2/10/97 49 .50 4.50 NCH PHILIPPINES 2ND QTR. Q-131 003669 3/5/97 49 .50 4.50 NEW SIAN YEK COMML 2ND QTR. Q-134 15480 2/21/97 84 .00 7.00 NEW VICTORY TRADING 2ND QTR. Q-127 83661 2/27/97 84 .00 7.00 NOL PHILIPPINES 2ND QTR. Q-126 66608 3/21/97 49 .50 4.50 NOL PHILIPPINES 2ND QTR. Q-136 66448 3/31/97 10,311.84 937.44 ORIENT FREIGHT INT'L 2ND QTR. Q-139 9859 3/24/97 255.00 23.18 ORIENT PORT & ALLIED 2ND QTR. Q-138 150429 3/2 1/97 43.40 3.95 ORIENT PORT & ALLIED 2ND QTR. Q-139 151162 3/6/97 1,500 .00 136.36 PC IDEAS 2ND QTR. Q-327 0000850 3/21/97 1,764.30 160.39 PHILAB INDUSTRIES 2ND QTR. Q-555 987 4 3/25/97 1,774.61 161.33 POLARIS POWER ENGR 2ND QTR. Q-158 4773 3/26/97 661 .10 60 .10 RCPI 2ND QTR. Q-161 919697 2/14/97 661 .10 60.10 RCPI 2ND QTR. Q-161 919579 3/22/97 2 ,000 .00 181.82 RCPI 2ND QTR. Q-162 386493 3/26/97 2,790 .00 253.64 RCPI 2ND QTR. Q-160 387317 3/12/97 1,120.00 101.82 RCPI 2ND QTR. Q-160 386421 3/18/97 72.16 6.56 RICKY'S BAKERY & GROCERY 2ND QTR. Q-159 514561 ?/14/97 344 .79 31.34 SIEMEN'S , INC. 2ND QTR. Q-164 20719 :;!14/97 123.86 11 .26 SIMON ENTRP. 2ND QTR. Q-169 31321 3/31/97 123.86 11 .26 SOUTHERN IND'L GASES 2ND QTR. Q-175 713428 3/7/97 99.22 9.02 SUPERLIFT EQUIPMENT 2ND QTR. Q- 181 5980 1/10/97 60 .50 5.50 SUPERLIFT EQUIPMENT 2ND QTR. Q-182 5985 3/21/97 176 ,473 .44 16 ,043.04 SUPERLIFT EQUIPMENT 2ND QTR. Q-597 5962 3/6/97 12,607 .90 1,146.17 SYMBOLIC MARKETING 2ND QTR. Q-183 7071 3/15/97 1 ,896 .00 172.36 SYMBOLIC MARKETING 2ND QTR. Q-184 7072 12/19/96 46,295.90 4 ,208 .72 SYMBOLIC MARKETING 2ND QTR. Q-185 7083 3/ 10/97 4,2 14.98 383 .18 YUTEK HARDWARE 2ND QTR. Q-606 176269 3/10/97 78 ,512.12 7,137.47 YUTEK HARDWARE 2ND QTR. Q-605 177187 3/11/97 37 ,342.00 3,394.73 3/3/97 25 ,000 .00 2,272.73 3/17/97 3 ,440 .00 312 .73 91,000 .00 8,272 .73 1,120.00 101 .82 2 of 3 124 1

YUTEK HARDWARE 2ND QTR. Q-607 177733 3/10/97 11 ,740.00 1 ,067 .27 YUTEK HARDWARE 2ND QTR. Q-608 17773 2 3/10/97 72,564.00 6,596 .73 YUTEK HARDWARE 2ND QTR. Q-609 175972 2/27/97 78,320 .00 7,120.00 YUTEK HARDWARE 2ND QTR. Q-610 163451 9/5/96 CJ KARR IND'L 3RD QTR. R-3 3 16165 3/11/97 5,912. 00 537 .4 5 MASON TRADING 3RD QTR. R-87 1/29/97 306 .60 27 .87 PAC-ATLANTI C 3RD QTR. R-102 102 3/25/97 YUTEK HARDWARE 3RD QTR. R-364 000 7965 9/1 1/96 5 ,820 .00 529 .09 163828 1,90 4 .33 173.12 p 6,000 .00 545 .4 5 SUBTOTAL 888,820.52 p 80,827.33 (d) Invoice/official recei pt printed after July 31 , 1991 with stamped TIN-V 35 .00 1,500.00 3.18 DGTE . AUTO PARTS 4TH QTR. S-47 26452 9/18/97 136.36 DGTE AUTO PARTS 2ND QTR. Q-436 2 588 0 6/6/97 125 .00 PC IDEAS 2ND QTR. Q-327 00 00880 4/17/97 11 .36 1,660.00 p SUBTOTAL p 150.90 p (e) SGV's disallowance In which the amount is understated 10,000.00 933,752.46 p LURGIAG 3RD QTR. T-47 PV-97-7-263 7/30/9 7 94 ,866 .32 TOTAL p 3 of 3 124 2