MIRANT SUAL CORPORATION v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES Court Of Tax Appeals QUEZON CITY FORMER SECOND DIVISION TeaM SUAL CORPORATION C.T.A. CASE NO. 7620 (Formerly: Mirant Sual Corporation and Southern Energy Pangasinan, Inc.), Petitioner, Members: CASTANEDA, JR., Chairperson -versus- UY, and P ALANCA-ENRlQUEZ, JJ. COMMISSIONER OF INTERNAL Promulgated: . REVENUE, R espon den.t APR 2 3 201~ J q: ;f r-,· X ----------------------------------------------------------------------------------- X DEC ISI O N PALANCA-ENRIQUEZ, J.: Section 112 (A) of the NIRC of 1997, as amended, expressly provides that unutilized input VAT payments, not otherwise used for internal revenue tax due the taxpayer, must be claimed within two (2) years reckoned from the close of the taxable quarter when the relevant sales were made pertaining to the input VAT regardless of whether said tax was paid or not. The reckoning frame would always be the end of the quarter when the sales were made regardless when the input VAT was (9)! . J8J

C.T.A. CASE NO. 7620 2 DECISION paid. Further, both the administrative claim and judicial claim for refund must be filed within the two (2) year period. THE CASE This is a Petition for Review filed by petitioner TeaM Sual Corporation (Formerly: Mirant Sual Corporation and Southern Energy Pangasinan, Inc.) praying for a refund or issuance of a tax credit certificate in the total amount ofP103,588,530.59, representing unutilized input VAT paid on its domestic purchases of capital goods, domestic purchases of goods other than capital goods, domestic purchases of services, services rendered by non residents, importation of capital goods and importation of goods other than capital goods attributable to its zero- rated sales for the period from January 1, 2005 to October 31, 2005. THE PARTIES Petitioner is a domestic corporation duly organized and existing under and by virtue of Philippine laws with principal office at Bo. Pangascasan, Sual, Pangasinan. Petitioner was originally registered with the SEC under the name of Pangasinan Electric Corporation, which was changed to Southern Energy Pangasinan, Inc., then to Mirant Sua] Corporation. During the pendency of this case, it again changed its - corporate name to TeaM Sual Corporation on July 23, 2007.

C.T.A. CASE NO. 7620 3 DECISION Respondent, on the other hand, IS the duly appointed Commissioner of Internal Revenue, vested with authority to act on and approve claims for refund or issuance of tax credit certificate of overpaid internal revenue taxes as provided by law, with office address at the BIR National Office Building, Agham Road, Diliman, Quezon City. THE FACTS The antecedent facts of the case are as follows: Petitioner is principally engaged in the busines? of power generation and subsequent sale thereof to National Power Corporation (NPC) under a Build, Operate, Transfer (BOT) scheme. As such, it is principally registered with the BIR as a VAT taxpayer, in accordance with Section 107 of the NIRC of 1997, as amended, with Tax Identification No. 003-841-103. On December 17, 2004, petitioner filed with the BIR Audit Information Tax Exemption and Incentives Division an Application for Effective Zero-Rate of its supply of electricity to the NPC for the period January 1, 2005 to October 31, 2005, which was subsequently approved. On December 21 , 2006, petitioner filed an administrative claim for refund ofunutilized input VAT with the Revenue District Office No.5 , at :J8 5

C.T.A. CASE NO . 7620 4 DECISION Alaminos City in the total amount of P1 03,588,530.59 for the period January 1, 2005 to October 31, 2005. In order to preserve its right and to toll the runnmg of the prescriptive period for its judicial claim, petitioner filed the instant Petition for Review on April 18, 2007. In his Answer filed on May 28, 2007, respondent, by way of special and affirmative defenses, averred that the CT A has no jurisdiction to entertain the instant petition for r~view for failure of petitioner to comply with Section 112 (D) of the NIRC of 1997, as amended; that the administrative claim for refund with the BIR was filed on December 21, 2006, subsequently, the instant petition was filed on April 15, 2007, obviously, the 120 days given to Commissioner to decide on the claim has not yet lapsed when the petition was filed; hence, the petition was prematurely filed and must be dismissed for lack of jurisdiction. Petitioner presented Taryn Uberita and Emmanuel Mendoza, as witnesses, and documentary evidence marked as Exhibits "A" to "XX", inclusive of their submarkings, which were admitted by the Court, except for Exhibits " W" to "Z", "EE" to "HH", and their submarkings, for failure of the petitioner to identify the same during trial. .;;ac

C.T.A. CASE NO. 7620 5 DECISION Upon motion of counsel for the petitioner, respondent's right to present evidence was considered waived for his repeated failure to appear at the trial for the presentation of his -evidence. Thereafter, both parties were ordered to file their simultaneous memoranda, within thirty (30) days from notice. Considering petitioner's "Memorandum" filed on March 20, 2009 and respondent's "Memorandum" filed on May 4, 2009, the case was deemed submitted for dec.ision on May 12, 2009. Hence, this decision. ISSUES As stipulated upon by the parties, the following are the issues for this Comi's consideration: I WHETHER OR NOT THE POWER GENERATION SERVICES RENDERED BY PETITIONER FOR THE PERIOD JANUARY 1, 2005 TO OCTOBER 31, 2005 TO NPC, MIRANT PHILIPPINES ENERGY CORPORATION, MIRANT PHILIPPINES INDUSTRIAL POWER CORPORATION, AND MIRANT PHILIPPINES INDUSTRIAL POWER II CORPORATION ARE SUBJECT TO ZERO PERCENT (0%) VAT PURSUANT TO RA NO. 6395, AND THE EPIRA, AND ITS IMPLEMENTING RULES AND REGULATIONS. @JY

C.T.A. CASE NO. 7620 6 DECISION II WHETHER OR NOT PETITIONER HAD UTILIZED INPUT VAT FOR THE PERIOD JANUARY 1, 2005 TO OCTOBER 31, 2005 IN THE TOTAL AMOUNT OF P103,588,530.59 WHICH ARE ATTRIBUTABLE TO PETITIONER'S ZERO RATED SALES OF POWER GENERATION SERVICES TO NPC, MIRANT PHILIPPINES ENERGY CORPORATION, MIRANT PHILIPPINES INDUSTRIAL POWER CORPORATION, AND MIRANT PHILIPPINES INDUSTRIAL POWER II CORPORATION PURSUANT TO RA NO. 6395, AND THE EPIRA, AND ITS IMPLEMENTING RULES AND REGULATIONS. III WHETHER OF NOT THE ADMINISTRATIVE CLAIM FOR REFUND FILED BY PETITIONER WITH REVENUE DISTRICT OFFICE NO. 5 AT ALAMINOS CITY ON DECEMBER 21, 2006 IN THE AMOUNT OF p103,588,530.59 AND THE INSTANT PETITION FOR REVIEW WERE SEASONABLY FILED. IV WHETHER OR NOT THE UNUTILIZED CREDITABLE INPUT TAXES FOR THE PERIOD JANUARY 1, 2005 TO OCTOBER 31, 2005 IN THE TOTAL AMOUNT OF P103,588,530.59 ARE PROPERLY SUBSTANTIATED BY INVOICES AND OFFICIAL RECEIPTS. v WHETHER OR NOT THE UNUTILIZED INPUT VAT PAYMENTS FOR THE PERIOD JANUARY 1, 2005 TO OCTOBER 31, 2005 IN THE TOTAL AMOUNT OF Pl03,588,530.59 WERE CARRIED OVER TO AND w ~88

C. T.A. CASE NO . 7620 7 DECISION UTILIZED IN THE SUCCEEDING TAXABLE QUARTER(S) ARE APPLIED AGAINST ANY OF THE OUTPUT VAT LIABILITY OF THE PETITIONER. VI WHETHER OR NOT PETITIONER IS ENTITLED TO A REFUND AND/OR ISSUANCE OF TAX CREDIT CERTIFICATE FOR THE UNUTILIZED INPUT VAT PAYMENTS IN THE TOTAL AMOUNT OF Pl 03 ,588,530.59. Principal Iss ue The foregoing Issues raised by both parties boil down to the principal issue of whether or not petitioner is entitled to a refund or issuance of a tax credit certificate in the aggregate amount of P 103, 588,530.59, representing unutilized excess input VAT attributable to zero-rated sales for the second and third quarters and the month of October for taxable year 2005. THE COURT'S RULING The petition is partly meritorious. Petitioner anchors its claim on Section 112(A) of the National Internal Revenue Code (NIRC) of 1997, as amended, which provides, as follows: "SEC. 112. Refunds or Tax Credits oflnput Ta(j/r;J

C.T.A. CASE NO. 7620 8 DECISION (A) Zero-rated or Effectively Zero-rated Sa les. - Any VAT -registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the 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 extent that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 106(A)(2)(a)(1),(2) and (B) and Section 108(B)(l) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and 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 <;tlso 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 volume of sales." Pursuant to the above provision, in order to be entitled to a refund or tax credit certificate of input VAT attributable to zero-rated or effectively zero-rated sales, the following requisites must be complied with: 1) there must be zero-rated or effectively zero-rated sales; 2) that input taxes were incurred or paid; 3) that such input taxes are attributable to zero-rated sales or effectively zero-rated sales; 4) that the input taxes were not applied against any output VAT liability; and (JL :.;go

C.T.A. CASE NO. 7620 9 DECISION 5) that the claim for refund was filed within the two-year prescriptive period. Fi(th Requisite: Claim for refund was filed within the two-year period This Court finds it appropriate to determine first the timeliness of the filing of the instant claim. Clearly, Section 112 (A) provides that the taxpayer may apply for a refund or issuance of a tc;1x credit certificate, within two (2) years from the close of the taxable quarter when the importation or purchase was made. In the recent case of Commissioner of Internal Revenue vs. Mirant Pagbilao Corporation (Formerly Southern Energy Quezon, Inc.), 565 SCRA 154, the Supreme Court settled the issue on the reckoning of the prescriptive period and the applicable provisions of claims for refund for input VAT, as follows: "Claim for refund or tax credit filed out of time The claim for refund or tax credit for the creditable input VAT payment made by MPC embodied in OR No. 0189 was filed beyond the period provided by law for such claim. Sec. 112(A) ofthe NIRC pertinently reads: (A) Zero-rated or Effectively Zero -rated Sales. - Any VAT -registered person, whose sales are zero- rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax (f)_

C.T.A. CASE NO. 7620 10 DECISION credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: x x x. (Emphasis ours.) The above proviso clearly provides in no uncertain terms that unutilized input VAT payments not otherwise used for any internal revenue tax due the taxpayer must be claimed within two years reckoned from the close of the taxable quarter when the relevant sales were made pertaining to the input VAT regardless of whether said tax was paid or not. As the CA aptly puts it, albeit it erroneously applied the aforequoted Sec. 112(A), '[P]rescriptive period commences from the close of the taxable quarter when the sales were made and not from the ·time the input VAT was paid nor from the time the official receipt was issued.' Thus, when a zero-rated VAT taxpayer pays its input VAT a year after the pertinent transaction, said taxpayer only has a year to file a claim for refund or tax credit of the unutilized creditable input VAT. The reckoning frame would always be the end of the quarter when the pertinent sales or transaction was made, regardless when the input VAT was paid. Be that as it may, and given that the last creditable input VAT due for the period covering the progress billing of September 6, 1996 is the third quarter of 1996 ending on September 30, 1996, any claim for unutilized creditable input VAT refund or tax credit for said quarter prescribed two years after September 30, 1996 or, to be precise, on September 30, 1998. Consequently, MPC's claim for refund or tax credit filed on December 10, 1999 had already prescribed. Reckoning for prescriptive period under Sees. 204(C) and 229 of the NIRC i~applicable To be sure, MPC cannot avail itself of the provisions of either Sec. 204(C) or 229 of the NIRC which, for the purpose of refund, prescribes a different starting point for

C.T.A. CASE NO. 7620 11 DECISION the two-year prescriptive limit for the filing of a claim therefor. Sees. 204(C) and 229 respectively provide: Sec. 204. Authority of the Commissioner to Compromise, Abate and Refund or Credit Taxes. - The Commissioner may - xxxx (c) Credit or refund taxes erroneously or illegally received or penalties imposed without authority, refund the value of internal revenue stamps when they are returned in good condition by the purchaser, and, in his discretion, redeem or change unused stamps that have been rendered unfit for use and refund their value upon proof of destruction. No credit or refund of taxes or penalties shall be allowed unless the taxpayer files in writing with the Commissioner a claim for credit or refund within two (2) years after the payment of the tax or penalty: Provided, however, That a return filed showing an overpayment shall be considered as a written claim for credit or refund. xxxx Sec. 229. Recovery of Tax Erroneously or Illegally Collected. - No suit or proceeding shall be maintained in any court for the recovery of any national internal revenue tax hereafter alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, of any sum alleged to have been excessively or in any manner wrongfully collected without authority, or of any sum alleged to have been excessively or in any manner wrongfully collected, until a claim for refund or credit has been duly filed with the Commissioner; but such suit or proceeding may be maintained, whether or not such tax, penalty, or sum has been paid under protest or duress. In any case, no such suit or proceeding shall be filed after the expiration of two (2) years from the date of payment of the tax or penalty regardless of any supervening cause that may arise after payment: Provided, however, That the Commissioner may, even without a written claim therefor, refund or credit any .j9J

C.T.A. CASE NO. 7620 12 DECISION tax, where on the face of the return upon which payment was made, such payment appears clearly to have been erroneously paid. (Emphasis ours.) Notably, the above provisions also set a two-year prescriptive period, reckoned from date of payment of the tax or penalty, for the filing of a claim of refund or tax credit. Notably too, both provisions apply only to instances of erroneous payment or illegal collection of internal revenue taxes." Evidently, Section 112 (A) of the NIRC of 1997, as amended, clearly provides in no uncertain terms that unutilized input VAT payments not otherwise used for internal revenue tax due the taxpayer must be claimed within two (2) years reckoned from the close of the taxable quarter when the relevant sales were made or capital goods were imported or locally purchased pertaining to the input VAT, regardless of whether said tax was paid or not. The reckoning frame would always be the end of the quarter when the sales were made or capital goods were imported or locally purchased, regardless when the input VAT was paid. In this case, petitioner is claiming for the input VAT accumulated from January 1, 2005 to October 31, 2005 , hence, the counting ofthe two (2) year prescriptive period is, as follows: Period covered Reckoning date Last day to file a claim (both administrative & judicial) January 1 to March 31 , 2005 March 31 , 2005 March 31 , 2007 (First Quarter)

C.T.A. CASE NO. 7620 13 DECISION April 1 to June 30, 2005 June 30; 2005 June 30, 2007 (Second Quarter) July 1 to September 30, 2005 September 30, 2005 September 30, 2007 (Third Quarter) October 1- 31 , 2005 December 31 , 2005 December 31, 2007 Records show that petitioner filed its administrative claim on December 21, 2006 (Exhibit "B ') and the present Petition for Review on April 18, 2007. Clearly, petitioner's administrative claim for the first three (3) quarters of 2005 and for the month of October 2005 was filed within the prescriptive period of two (2) years. However, petitioner's judicial claim for the first quarter of 2005 was filed out of time. Therefore, petitioner is barred from claiming refund of its input taxes for the first quarter of 2005 in the amount of P18,738,140.02 due to prescription. First Requisite: There must be zero-rated or effectively zero rated sales As regards the first requisite, petitioner contends that its sale of services to NPC qualifies for VAT zero-rating, pursuant to Section 108 (B) (3) of the NIRC of 1997, as amended, which provides: "SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties.- XXX XXX

C.T.A. CASE NO. 7620 14 DECISION (B) Transactions Subj ect to Zero Percent (0°/o) Rate.- The following services performed in the Philippines by VAT -registered persons shall be subject to zero percent (0%) rate: XXX XXX (3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate; xxx xxx." It is well settled that NPC is exempt from payment of all kinds of taxes, both direct and indirect (Maceda vs. Macaraig, 223 SCRA 236), to wit: "The use of the phrase ' all forms' of taxes demonstrates the intention of the law to give NPC all the tax exemption it has been enjoying before. The rationale for this exemption is that being non-profit the NPC ' shall devote all its returns from its capital investment as well as excess revenues from its operation, for expansion.' XXX XXX It is evident from the provisions of PD No. 938 that its purpose is to maintain the tax exemption of NPC from all forms of taxes including indirect taxes as provided for under R.A. No. 6395 and P.D. No. 380 if it is to attain its goals. xxx xxx." J9G

C.T.A. CASE NO . 7620 15 DECISION Petitioner further presented its Application for VAT Zero-Rate (Exhibit "A") to prove that the BIR approved its application for zero-rating for the period from January 1, 2005 to October 31, 2005 for its sales to NPC. Petitioner also claims that its sale of electricity, as a generation company, to other compames other than the NPC, qualifies for VAT zero-rating under paragraph 5, Section 6 of RA 9136(EPIRA Law), which states: "SEC. 6. Generation Sector. xxx XXX XXX Pursuant to the objective of lowering electricity rates to end- users, sales of generated power by generation companies shall be value added tax zero-rated. xxx xxx." To qualify for VAT zero-rating under the EPIRA law, petitioner must be able to establish that: 1) it is a generation company and 2) it derives sales from power generation. 1) Generation Company Section 4 of RA 9136 provides: "SEC. 4. Definition of Terms.- XXX XXX .j97

C.T.A. CASE NO. 7620 16 DECISION (w) "Generation Company" refers to any person or entity authorized by th e ERC to operate faci lities used in the generation of electricity;" (Emphasis supplied) As regards the first requisite, petitioner failed to establish that it is a generation company in accordance with RA 9136. Petitioner failed to present any proof that it was registered with the Energy Regulatory Commission (ERC), pursuant to Section 4 of RA 9136, in relation to Section 6 (b) Rule 5 of the IRR, nor did it present any document to prove that it was accredited by the Department of Energy. Moreover, petitioner's claim under the EPIRA Law is being raised for the first time in this Court, it was never raised at the administrative level. Notably, in its administrative claim for refund with the BIR, only petitioner's sales to NPC were raised, as subject to zero-percent VAT, hence, it cannot raise the issue of its zero-rated sales to other companies, pursuant to the EPIRA Law for the first time in this Court. It is well settled that under the principle of prior exhaustion of administrative remedies, questions or issues not raised in the administrative level cannot be raised for the first time in the judicial level. To allow a litigant to assume a different posture when he comes before the court and challenge the position he had accepted at the administrative level, would be to · sanction a procedure whereby the Court-which is supposed to review J98

I' C.T.A. CASE NO. 7620 17 DECISION administrative determinations-would not rev1ew, but determine and decide for the first time, a question not raised at the administrative forum (Commissioner of Internal Revenue vs. Wander Philippines, Inc. , 160 SCRA 573) . Thus, petitioner's sales of generated power to Mirant Philippines Energy Corporation, Mirant Philippines Industrial Power Corporation, and Mirant Philippines Industrial Power II Corporation, cannot be claimed as zero percent (0%) VAT under the EPIRA Law. 2) Derives sales (rom power generation As regards the second requisite, records show that for the three quarters of taxable year 2005 until October of the same year, petitioner generated sales of power generation services to NPC and various companies in the total amount of P12,276,041,728.09, which was declared in its Quarterly VAT Returns for the three (3) quarters and the Monthly VAT Return for the month of October, as follows: Zero-Rated Exhibit Year 2005 Sales/Receipts c 151 Quarter 3,775,412,124.01 D 2nd Quarter 3,600,420,391 .50 E 3rct Quarter 3,700,406,077.70 I month of October 1'199,803,134.88 TOTAL 12,276,041,728.09 The ICPA found a marked discrepancy between the total zero-rated .. w receipts ofP11,007,487,989.41 reflected in petitioner' s books of accounts ::;gg

C.T.A. CASE NO. 7620 18 DECISION and the total zero-rated receipts of P12,276,041,728.09 declared by petitioner in its 2005 Quarterly VAT Returns. In his report, the ICP A reconciled the amounts reported in the Quarterly VAT returns with the amounts recorded in the books as gross receipts, as follows: , "Total Amounts reported in the Quarterly VAT Returns P12,276,041 ,728.09 Add: Receivables, October 31 , 2005 1,295,912,485.40 Accrual of current year's revenue 45,311,352.37 1,341,223,837.77 Less: Receivables, beginning 1,330,191 ,291 .35 Reversal of previous year's accrual of Revenue 1,273,229,991.31 Foreign exchange difference 6,356,293.79 (2,609,777,576.45) Sales per books P11 ,007,487,989.41 The difference of P 1,263,553, 738.68 is mainly attributable to the accrual basis of accounting used in reporting zero-rated sales in the Company's books as against the actual receipts reported in the quarterly VAT Returns." (Exhibit " G ", pp. 12- 13) Considering the above findings of this Court, we are constrained to deduct the amount corresponding to the zero-rated sales for the first quarter due to prescription, and the alleged zero-rated sales which did not qualify for zero-rating for failure of petitioner to prove its entitlement under the EPIRA Law and for petitioner's failure to exhaust administrative remedies. The total disallowed amount of P4,057,987,717.64, is computed as follows:

'' C.T.A. CASE NO. 7620 19 DECISION 1st Quarter (due to prescription) P3,775,4 12,124.01 2nd Quarter MPIPC 3,004,545.95 MPI P-11 C 44,795,375.78 MPEC 114,713,450.45 162,513,372.18 3rd Quarter MPEC 84,751,495.71 MPIPC 1,109,534.31 MPI P- 11 C 22,687,895.82 108,548,925.84 October MPI P-11 C 11,513,295.61 TOTAL P4,057,987,717 .64 Only petitioner's sales of electricity to NPC, as a power generation company, for the second and third quarters, and the month of October all for the year 2005, in the total amount of P8,218,054,010.45, qualify for VAT zero-rating, thus: Claimed Zero Rated Sales P12,276, 041 ,728.09 Less: Deductions 4,057,987,717.64 Substantiated Zero- Rated Sales P8,218,054,010.45 Second and Third Requisites: Input taxes were incurred or paid and that such input taxes are attributable to zero-rated sales or effectively zero-rated sales We now proceed to the determination of the amount of input VAT attributable thereto. Petitioner submitted various suppliers' invoices, official receipts, Bureau of Customs (BOC) Import Entries and Internal Revenue Declarations (IEIRDs ), BOC and bank official receipts (Exhibits "S" to 40 1

C.T.A. CASE NO. 7620 20 DECISION " V", with submarkings, as summarized in Exhibits "0" to "R'), in support of its claimed unutilized input taxes reflected in its Quarterly VAT Returns for the four quarters of 2005, in the amount of Pl 03,588,530.59, broken down, as follows: PERIOD COVERED CLAIMED INPUT TAX 1st quarter P18,738,140.02 2nd quarter 34,033,077.52 3rd quarter 37,548,063.34 October 13,269,249.71 TOTAL P1 03,588,530.59 Upon perusal of said documents, the Court-Commissioned Independent CPA Emmanuel Mendoza found that out of the claimed amount of Pl 03,588,530.59, only the amount of Pl 02,894,131.30 (!CPA Report, Exhibit "J" {erroneously marked as Exhibit "G "] , pp. 4-8) is properly substantiated. The findings of the ICP A as to the disallowance of claimed input VAT amounting to P694,399.29 are further reduced to P348,163.67, after deducting the disallowances corresponding to the prescribed claim for first quarter of2005, which is hereby summarized, as follows: DISALLOWANCES PER INDEPENDENT CPA'S REPORT FINDINGS INPUT TAX Domestic purchases of services supported by documents other than Ors P3,641.48 Domestic purchases of goods supported by documents other than invoices 35,583.92 Domestic purchases of goods supported by invoices with no BIR authority to print 56,408.33 ~ 4 02

C.T.A. CASE NO. 7620 21 DECISION Domestic purchases of services supported by Ors w/preprinted Non-VAT/NV 6,263.67 Domestic purchases of goods supported by invoices w/preprinted Non-VAT/NV 1,697.82 Domestic purchases of services supported by Ors w/preprinted "TIN" only 9,090.91 Domestic purchases of goods supported by invoices with preprinted "TIN" only 139.82 Domestic purchases of goods supported by VAT invoices with no "TIN" 2,625.00 Domestic purchases of services supported by Ors with zero rated "TIN" 717.97 Unaccounted Input VAT for Domestic purchases of services 1,416.22 Unaccounted Input VAT for Domestic purchases of goods 2,603.31 Domestic purchases of services and goods with No available supporting documents 155,528.22 Importation of goods with no available supporting documents 72,447 .00 TOTAL p 348,163.67 Considering that petitioner's input VAT claim for the first quarter of 2005 had already prescribed, the claimed input VAT amounting to Pl8,738,140.02 for the first quarter should totally be deducted. Likewise, the Court also finds that the input VAT claim should be further decreased by P4,098,113.50 (A nnexes "A" to "C" of this Decision), for claims supported by VAT official receipts and invoices, but which had already prescribed or are outside the period of claim, thus: Type of Input VAT Annex Input VAT First Quarter p 18,738,140.02 Second Quarter Input VAT on purchases of services A 140,767.08 Input VAT on purchases of goods A-1 2,605,989.48 Input VAT on importations A-2 835,143.00 Third Quarter B Input VAT on purchases of services 9,379:5o Input VAT on purchases of goods 27,186.87 Input VAT on importations 136,930.00 aJ 403

C.T.A. CASE NO. 7620 22 DECISION October c Input VAT on purchases of services 314,172.30 Input VAT on purchases of goods 227.27 Input VAT on importations 28,318.00 TOTAL (Additional Disallowance) p 22,836,253.52 Based on the foregoing, out of petitioner's claimed input VAT of P103,588,530 .59, only the amount of P80,404,113.40 has been duly substantiated, in accordance with Sections 110(A) and 113{A) of the NIRC of 1997, as amended, and as implemented by Sections 4.104-5 and 4.108-1 ofRevenue Regulations No. 7-95, broken down as follows: Claimed input VAT P1 03,588,530.59 Less: Disallowances Per ICPA 348,163.67 Per Court's verification 22,836,253.52 23,184,417.19 Valid input VAT P80,404,113.40 Fourth Requisite: Input taxes were not applied against any output VAT liability As regards the fourth requisite, a perusal of petitioner's Quarterly VAT Returns for the second and third quarters of 2005 and the month of October 2005 {Exhibits "D", "E", and "!'') shows that petitioner incurred an output tax liability amounting to P218,935.35. However, records show that such output tax has not yet been deducted from petitioner's claim. Such output tax should be offset against the substantiated input VAT of P80,404,113.40. Thus, only the net input VAT in the amount of 40 4

' ' C.T.A. CASE NO. 7620 23 DECISION P80,185 ,178.05 IS unutilized or unapplied, as of the fourth quarter of 2005. Moreover, the substantiated claim ofP80,185,178.05 forms part of the P206,891,1 58.45 (Pl03,302,627.88 for C.T.A. Case No. 7470 and Pl03,588,530.59 for the instant case) input VAT deducted as "Any VAT Refund/TCC Claimed" in the Quarterly VAT Return for the fourth quarter of 2005 (Exhibit "G"). Consequently, records show that the claimed input VAT was no longer carried over to the succeeding quarters of 2006 and 2007 (Exhibits "MM" to "SS''). This means that the substantiated claim of P80, 185,178.05 can no longer be used as credit against petitioner's future output VAT liability. For all the foregoing, the Court finds that petitioner is entitled to a refund or issuance of a Tax Credit Certificate representing unutilized input VAT attributable to zero-rated sales for the second and third quarters and the month of October of taxable year 2005 , but in the reduced amount ofP77,519,684.39, computed, as follows: Amount of Claim P1 03,588,530.59 Less: Prescribed Claim (1st Quarter) 18,738,140.02 Unprescribed Claim 84,850,390.57 Less: Disallowances Per ICPA 348,163.67 Per Court's verification 4,098,113.50 ---~4,~44.:...:..6,=27.:...:..7.:...:..17~ Valid Input VAT P80,404,113.40 UJ_ 405

C.T.A. CASE NO. 7620 24 DECISION Less: Output VAT 218,935.35 Excess Input VAT p 80,185,178.05 Substantiated Zero-rated Sales P8,218,054,01 0.45 Total Declared Zero-rated Sales 8,500,629,604.08 Excess Input VAT X 80,185,178.05 REFUNDABLE EXCESS INPUT VAT Attributable to Zero-Rated Sales I P77,519,684.39 WHER EFORE, premises considered, the present Petition for Review 1s PARTLY GRANTED. Accordingly, respondent Commissioner of Internal Revenue is hereby ORDERED T O REFUND OR ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner in the reduced amount of SEVENTY SEVEN MILLION FIVE HUNDRED NINETEEN THOUSAND SIX HUNDRED EIGHTY FOUR and 39/100 PESOS (P77,519,684.39), representing unutilized input VAT attributable to zero-rated sales for the second and third quarters and the month of October oftaxable year 2005. SO ORDERED. ~~A~IQUEZ Associate Justice WE CONCUR: a ~~c.~~oG..., C).. (On Leave) JlfANITO C. CASTANEDA,Cfu.. ERLINDA P. UY Associate Justice Associate Justice 40G

''' C.T.A. CASE NO. 7620 25 DECISION ATTESTATION I attest that the conclusions in the above Decision were reached in consultation before the cases were assigned to the writer of the opinion of the Court's Division. ~~<2 . ~~ Sl. mANI T o c . cAsTANEn~, JR. Associate Justice Chairperson CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairman's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the cases were assigned to the writer of the opinion of the Court's Division. G ~- . c ~ ERNESTO D. ACOSTA Presiding Justice 407

'•' C.T.A. CASE NO. 7620 26 DECISION SUMMARY OF ADDITIONAL DISALLOWANCES FOR PRESCRIBED CLAIM OR OUTSIDE OF THE PERIOD COVERED ANNEX "A" SECOND QUARTER Input VAT on purchases of services Exh Supplier's Name No. OR No. OR Date Input tax Alexander Consulting Group T-10 185 22-Mar-05 5000 Asian Cable Comm. Inc. T-29 29534 30-Mar-05 3,432.58 Cable Box Office Shows & Systems Corp. T-41 39185 31-Mar-05 ' 3,680.22 Cable Box Office Shows & Systems Corp. T-41 39185 31-Mar-05 743.52 Cargohaus T-46 2084 30-Mar-05 49.6 DHL Worldwide Express T-100 283089 30-Mar-05 442.65 Equalizer Detective &Security Agency, Inc. T-141 14638 18-Mar-05 49 Equalizer Detective &Security Agency, Inc. T-141 14638 18-Mar-05 68,729.55 Equalizer Detective &Security Agency, Inc. T-141 14638 18-Mar-05 3,681 .82 Far East Hotel Mgmt & Consultancy T-152 1478 22-Mar-05 106.91 Far East Hotel Mgmt & Consultancy T-170 13093 21-Mar-05 150 Far East Hotel Mgmt & Consultancy T-170 13093 21-Mar-05 335.45 Far East Hotel Mgmt & Consultancy T-170 13093 21-Mar-05 404 Far East Hotel Mgmt & Consultancy T-170 13093 21-Mar-05 415.68 Far East Hotel Mgmt & Consultancy T-170 13093 21-Mar-05 1,483.36 Far East Hotel Mgmt & Consultancy T-171 13095 21-Mar-05 15.45 Far East Hotel Mgmt & Consultancy T-172 13096 21-Mar-05 2,803.54 Far East Hotel Mgmt & Consultancy T-173 13097 21-Mar-05 1,075.64 Far East Hotel Mgmt & Consultancy T-173 13097 21-Mar-05 19.82 Far East Hotel Mgmt & Consultancy T-173 13097 21-Mar-05 851 .64 Far East Hotel Mgmt & Consultancy T-173 13097 21-Mar-05 2,417.09 Far East Hotel Mgmt & Consultancy T-174 13098 21-Mar-05 4,321 .68 FFG Ventures T-194 19174 9-Mar-05 1,626.55 Golden Age Landholdings Inc. T-228 2771 26-Jan-05 14,952.38 Me Colbys Inc T-283 1688 4-Feb-05 363.64 Me Colbys Inc T-284 34217 29-Mar-05 359.09 Newport Learning Center Inc. T-303 534 28-Feb-05 4,545.45 Ocean Link Container Terminals Center T-314 150124 22-Mar-05 1,715.46 Ocean Link Container Terminals Center T-314 150124 22-Mar-05 885.96 Ocean Perch Multibless Enterprises T-315 2520 · 30-Mar-05 3,454.55 Ocean Perch Multibless Enterprises T-316 2521 30-Mar-05 1,723.64 Peoples Air Cargo T-328 591005 21-Jan-05 84.15 Peoples Air Cargo T-329 618052 7-Mar-05 160.06 uJ 408

C.T.A. CASE NO. 7620 27 DECISION Peoples Air Cargo T-330 620363 10-Mar-05 26.02 Peoples Air Cargo T-331 620859 10-Mar-05 36.77 Peoples Air Cargo T-335 585132 12-Jan-05 133.06 Peoples Air Cargo T-336 592068 21-Jan-05 86.06 Peoples Air Cargo T-337 602454 9-Feb-05 47.30 Peoples Air Cargo T-338 620812 10-Mar-05 38.75 Peoples Air Cargo T-339 624030 16-Mar-05 303.04 Philgerma Manufacturing Inc T-350 3954 30-Mar-05 863.63 PLOT T-352 6459 31-Mar-05 7,329.10 Philippine Port Authority T-364 18691256 14-Feb-05 51.94 RS Enterprises &Mill Supply T-396 526 18-Mar-05 938.18 Villa Jireh resort/Hotel T-486 2644 30-Mar-05 608.43 Villa Jireh resort/Hotel T-487 226 30-Mar-05 187.77 Toyota Dagupan City Inc. T-496 60696 15-Mar-05 36.90 TOTAL 140,767.08 Input VAT on purchases of goods Supplier's Name Exh No. Invoice No. Invoice Date Input tax Abstract Industrial Sales T-497 1739 10-Mar-05 1,320.00 Access Frontier Technologies Inc T-511 3399 1-Mar-05 615.98 Ace Diesel Parts Supply T-514 5849 17-Mar-05 265.00 Ace Diesel Parts Supply T-515 5850 17-Mar-05 190.00 Ace Diesel Parts Supply T-516 5851 18-Mar-05 16,800.00 Ace Diesel Parts Supply T-517 5861 31-Mar-05 900.00 Achiever's Sales Corp T-527 181544 21-Mar-05 1,454.55 Arnzen lndustires Inc T-537 2045 29-Mar-05 1,302.00 Andison Industrial Sales Inc T-541 9901 16-Mar-05 504.55 Armidale Chemical Industrial Corp T-542 8111 9-Mar-05 27,090.91 Armidale Chemical Industrial Corp T-543 8131 31-Mar-05 27,090.91 Assisstco Energy and Industrial Corp T-551 20153 27-Jan-05 3,050.00 Atom Merchandising T-552 7486 7-Jan-05 3,999.68 Atom Merchandising T-553 7489 7-Jan-05 1,990.97 Atom Merchandising T-554 7527 17-Jan-05 36.36 Atom Merchandising T-555 7528 17 -Jan-05 36.00 Atom Merchandising T-556 7529 17-Jan-05 327.27 Atom Merchandising T-557 7537 19-Jan-05 681 .82 Atom Merchandising T-558 7544 20-Jan-05 256.20 Atom Merchandising T-559 7574 28-Jan-05 509.50 Atom Merchandising T-560 7575 28-Jan-05 665.00 Atom Merchandising T-561 7576 28-Jan-05 890.00 Atom Merchandising T-562 7577 28-Jan-05 1,668.68 Atom Merchandising T-563 7582 28-Jan-05 1, 907.29 Atom Merchandising T-564 7601 1-Feb-05 298.00 Atom Merchandising T-565 7603 1-Feb-05 926. 91 Atom Merchandising T-566 7604 1-Feb-05 700.00 [t{4o9

C.T.A. CASE NO. 7620 28 DECISION Atom Merchandising T-567 7616 3-Feb-05 950.00 Atom Merchandising T-568 7617 3-Feb-05 81.82 Atom Merchandising T-569 7620 · 7-Feb-05 228.00 Atom Merchandising T-570 7621 7-Feb-05 115.91 Atom Merchandising T-571 7622 7-Feb-05 130.00 Atom Merchandising T-572 7623 7-Feb-05 2,308.50 Atom Merchandising T-573 7644 10-Feb-05 170.00 Atom Merchandising T-574 7646 10-Feb-05 229.64 Atom Merchandising T-575 7659 15-Feb-05 52.36 Atom Merchandising T-576 7660 15-Feb-05 28.36 Atom Merchandising T-577 7662 15-Feb-05 126.00 Atom Merchandising T-578 7663 15-Feb-05 1,500.00 Atom Merchandising T-579 7664 15-Feb-05 76.36 Atom Merchandising T-580 7665 15-Feb-05 38.18 Atom Merchandising T-581 7666 15-Feb-05 3,600.00 Atom Merchandising T-582 7667 15-Feb-05 3,560.00 Atom Merchandising T-583 7668 15-Feb-05 189.09 Atom Merchandising T-584 7669 15-Feb-05 340.00 Atom Merchandising T-585 7686 18-Feb-05 1,389.68 Atom Merchandising T-586 7687 18-Feb-05 50.00 Atom Merchandising T-587 7688 18-Feb-05 172.80 Atom Merchandising T-588 7751 3-Mar-05 1,237.68 Atom Merchandising T-589 7752 3-Mar-05 691.20 Atom Merchandising T-590 7753 3-Mar-05 818.18 Atom Merchandising T-591 7814 18-Mar-05 637.09 Atom Merchandising T-592 7815 18-Mar-05 230.00 Atom Merchandising T-593 7816 18-Mar-05 2,293.18 Atom Merchandising T-594 7830 23-Mar-05 1,120.00 Atom Merchandising T-595 7831 23-Mar-05 516 .00 Atom Merchandising T-596 7833 23-Mar-05 1,003 .64 Atom Merchandising T-597 7834 23-Mar-05 883.64 Atom Merchandising T-598 7836 23-Mar-05 1,263.45 Atom Merchandising T-599 7837 23-Mar-05 3,612.48 Atom Merchandising T-600 7851 30-Mar-05 6,042.40 Atom Merchandising T-601 7857 31-Mar-05 552.00 Atom Merchandising T-619 149743 3-Feb-05 619.27 Bearing Center & Machinery Inc. T-623 42363 10-Mar-05 74.00 Bearing Center &Machinery Inc. T-624 42364 10-Mar-05 230 .85 Bearing Center &Machinery Inc. T-625 42739 22-Mar-05 156.80 Bearing Center &Machinery Inc. T-626 42740 22-Mar-05 697.70 Bearing Center &Machinery Inc. T-627 42741 22-Mar-05 1,868.93 Bearing Center &Machinery Inc. T-628 42742 22-Mar-05 948.07 Bearing Center &Machinery Inc. T-629 42743 22-Mar-05 6,737.32 Belman Laboratories T-641 329211 10-Mar-05 113,545.45 Bend's Marketing T-647 252 17-Mar-05 5,909.09 BfiF Corporation T-648 59462 10-Mar-05 1,954.55 Bitstop Inc. T-649 20441 24-Feb-05 890.91 Bitstop Inc. T-650 20670 10-Mar-05 2,181.82 Bitstop Inc. T-651 20755 10-Mar-05 73.64 Brownstone Asia Tech Inc T-657 2067 9-Feb-05 7, 669.55 t1~ 10

' . C.T.A. CASE NO. 7620 29 DECISION Burgmann Philippines inc T-658 6482 28-Jan-05 101,400.00 Carried Lumber Company Inc T-666 13366 18-Feb-05 572.73 Carried Lumber Company Inc T-667 13366 18-Feb-05 1,827.91 Carried Lumber Company Inc T-668 13367 18-Feb-05 1,795.45 Carried Lumber Company Inc T-669 13380 24-Feb-05 272.73 Carried Lumber Company Inc T-670 13381 24-Feb-05 294.55 Carried Lumber Company Inc T-671 13399 1-Mar-05 136.36 Carried Lumber Company Inc T-672 13409 4-Mar-05 1,206.82 Carried Lumber Company Inc T-673 13410 4-Mar-05 2,974.09 Carried Lumber Company Inc T-674 13420 7-Mar-05 395.35 Carried Lumber Company Inc T-675 13431 9-Mar-05 1,879.55 Carried Lumber Company Inc T-676 13432 10-Mar-05 2,694.55 Carried Lumber Company Inc T-677 13433 15-Mar-05 2,154.55 Carried Lumber Company Inc T-678 13453 15-Mar-05 440.91 Carried Lumber Company Inc T-679 13455 15-Mar-05 422.73 Carried Lumber Company Inc T-680 13456 15-Mar-05 422.73 Carried Lumber Company Inc T-681 13457 15-Mar-05 422.73 Carried Lumber Company Inc T-682 13458 15-Mar-05 404.55 Carried Lumber Company Inc T-683 13459 15-Mar-05 202.27 Carried Lumber Company Inc T-684 13460 15-Mar-05 422.73 Carried Lumber Company Inc T-685 13461 15-Mar-05 422.73 Carried Lumber Company Inc T-686 13462 15-Mar-05 422.73 Carried Lumber Company Inc T-687 13463 15-Mar-05 422.73 Carried Lumber Company Inc T-688 13464 15-Mar-05 422.73 Carried Lumber Company Inc T-689 13465 15-Mar-05 404.55 Carried Lumber Company Inc T-690 13466 15-Mar-05 404.55 Carried Lumber Company Inc T-691 13467 15-Mar-05 202.27 Carried Lumber Company Inc T-692 13468 15-Mar-05 10,181.82 Carried Lumber Company Inc T-693 13472 16-Mar-05 6,000.00 Carried Lumber Company Inc T-694 13473 16-Mar-05 4,745.45 Carried Lumber Company Inc T-695 13477 16-Mar-05 1,962.73 Carried Lumber Company Inc T-696 13478 17-Mar-05 4,500.00 Carried Lumber Company Inc T-697 13479 16-Mar-05 237.27 Carried Lumber Company Inc T-698 13480 16-Mar-05 409.09 Carried Lumber Company Inc T-699 13491 18-Mar-05 229 09 Carried Lumber Company Inc T-700 13492 18-Mar-05 4,636.36 Carried Lumber Company Inc T-701 13493 18-Mar-05 718.18 Carried Lumber Company Inc T-702 13496 19-Mar-05 227.27 Carried Lumber Company Inc T-703 13499 21-Mar-05 18,416.36 Casipit Trading & Constrcution Corp. T-740 1294 16-Feb-05 98.18 Casipit Trading & Constrcution Corp. T-741 1295 8-Mar-05 181 .82 Casipit Trading & Constrcution Corp. T-742 1296 8-Mar-05 1,227.27 Cathay Industrial & Mill Supply T-745 63727 28-Feb-05 45,368.00 Cathay Industrial & Mill Supply T-746 63981 22-Mar-05 81,000 00 Cathay Industrial & Mill Supply T-747 63982 22-Mar-05 6, 930.00 Cathay Industrial & Mill Supply T-748 63985 22-Mar-05 45,368.00 Cathay ln.dustrial & Mill Supply T-749 63986 22-Mar-05 10,500.00 Cathay Industrial & Mill Supply T-750 63987 22-Mar-05 45,368.00 Cathay Industrial & Mill Supply T-751 63988 22-Mar-05 45,368.00 Cathay Industrial & Mill Supply T-752 64006 28-Mar-05 69.00

C.T.A. CASE NO. 7620 30 DECISION Cathay Industrial &Mill Supply T-753 64053 31-Mar-05 787.50 Chem Alloy Resources Inc T-796 2808 16-Mar-05 4,375.38 Chern Alloy Resources Inc T-797 2809 16-Mar-05 4,375.38 Chem Alloy Resources Inc T-798 2835 17-Mar-05 2,179.60 Chem Alloy Resources Inc T-799 2836 17-Mar-05 199.60 Civic Merchandising Inc T-802 34961 23-Mar-05 360.00 Civic Merchandising Inc T-808 34825 8-Mar-05 6,240.00 Civic Merchandising Inc T-809 34842 10-Mar-05 89,188.70 Civic Merchandising Inc T-810 34997 31-Mar-05 32,730.27 Civic Merchandising Inc T-811 34998 31-Mar-05 15,170.73 Civic Merchandising Inc T-812 35000 31-Mar-05 42,470.00 Columbia Technologies Inc T-820 36624 3-Mar-05 45,700.00 Columbia Technologies Inc T-821 36602 21-Mar-05 11 ,850.00 Columbia Technologies Inc T-822 36603 28-Mar-05 11 ,850.00 Columbia Technologies Inc T-823 36627 29-Mar-05 11 ,022.73 Computrends Systems technology Inc. T-830 15712 14-Mar-05 2,309.50 Computrends Systems technology Inc. T-831 15726 17-Mar-05 276.00 Computrends Systems technology Inc. T-832 15683 3-Mar-05 1,290.00 Computrends Systems technology Inc. T-833 15734 21-Mar-05 25,140.00 Consolidated Industrial Gases Inc. T-839 11224 8-Jan-05 1,079.82 Consolidated Industrial Gases Inc. T-840 11282 19-Jan-05 1,216.36 Consolidated Industrial Gases Inc. T-841 11293 25-Jan-05 735.45 Consolidated Industrial Gases Inc. T-842 11311 25-Jan-05 1,216.36 Consolidated Industrial Gases Inc. T-843 11262 15-Jan-05 1,254.36 Consolidated Industrial Gases Inc. T-844 11263 15-Jan-05 236.36 Consolidated Industrial Gases Inc. T-845 11527 7-Mar-05 1,665.45 Consolidated Industrial Gases Inc. T-846 11528 7-Mar-05 934.55 Consolidated Industrial Gases Inc. T-847 11427 15-Feb-05 1,248.18 Consolidated Industrial Gases Inc. T-848 11428 15-Feb-05 1,106.36 Consolidated Industrial Gases Inc. T-849 11445 17-Feb-05 375.45 Consolidated Industrial Gases Inc. T-850 11570 15-Mar-05 972.73 Consolidated Industrial Gases Inc. T-851 11600 21-Mar-05 1,804.00 Consolidated Industrial Gases Inc. T-860 11371 3-Feb-05 5,413.64 Core Automotive Resources Inc. T-861 10283 31-Mar-05 78,636.37 Core Automotive Resources Inc. T-861 10283 31-Mar-05 -6,454.55 Core Automotive Resources Inc. T-862 10287 31-Mar-05 78,636.36 Core Automotive Resources Inc. T-863 10287 31-Mar-05 -6,454.55 Core Automotive Resources Inc. T-864 10288 31-Mar-05 78,636.36 Core Automotive Resources Inc. T-865 10288 31-Mar-05 -6,454.55 Csl Supermarket Inc T-868 72297 4-Mar-05 43. 55 CSI Warehouse Club Inc T-869 273645 3-Feb-05 631.56 CSI Warehouse Club Inc T-870 294087 6-Mar-05 188.77 Cysco Green Inc. T-874 10149 18-Mar-05 2,370.91 Datuin Machine Works T-876 8760 21-Feb-05 454.55 Delta Hardware Inc T-877 55078 9-Mar-05 1,650.00 Delta Hardware Inc T-878 55097 16-Mar-05 2!650.00 Delta Hardware Inc T-884 55098 16-Mar-05 82.00 Delta Hardware Inc T-885 55127 29-Mar-05 3,840.00 Digital Micro International Corp T-894 1646 14-Mar-05 5,500.00 Dotcom, Inc T-898 2331 12-Jan-05 325.45 41 2 ~

C.T.A. CASE NO. 7620 31 DECISION Dotcom, Inc T-899 2332 12-Jan-05 650.91 Eaglestar Industrial Sales Corp T-901 31052 14-Mar-05 680.00 Eaglestar Industrial Sales Corp T-902 31056 17-Mar-05 600.00 Edsar Corporation T-916 2248 17-Mar-05 681 .82 Edsar Corporation T-917 2249 17-Mar-05 8,636.36 Escarda's trading T-923 1393 28-Mar-05 1,590.91 Eurotech Resources Corporation T-927 4884 15-Mar-05 197.50 Famous Electrical and Constrcution Supply T-932 108555 23-Mar-05 2,050.00 Famous Electrical and Constrcution Supply T-933 108557 23-Mar-05 2,452.00 Famous Electrical and Constrcution Supply T-934 108559 23-Mar-05 490.00 Famous Electrical and Constrcution Supply T-935 108561 23-Mar-05 200.00 Famous Electrical and Constrcution Supply T-936 108563 23-Mar-05 1,610.00 Famous Electrical and Constrcution Supply T-937 108565 23-Mar-05 455.40 Famous Electrical and Constrcution Supply T-938 108567 23-Mar-05 1,763.00 Famous Electrical and Constrcution Supply T-939 108569 23-Mar-05 711.40 Famous Electrical and Constrcution Supply T-940 108571 23-Mar-05 400.00 Famous Electrical and Constrcution Supply T-941 108573 23-Mar-05 742.80 Famous Electrical and Constrcution Supply T-942 108575 23-Mar-05 238.00 Famous Electrical and Constrcution Supply T-943 108577 23-Mar-05 759.00 Famous Electrical and Constrcution Supply T-944 108579 23-Mar-05 19,605.00 Famous Electrical and Constrcution Supply T-945 108581 28-Mar-05 815.00 Famous Electrical and Constrcution Supply T-945 108583 28-Mar-05 28,710.00 Famous Electrical and Constrcution Supply T-946 108585 28-Mar-05 12,275.00 Famous Electrical and Constrcution Supply T-947 108587 29-Mar-05 440.00 Famous Electrical and Constrcution Supply T-948 108587 30-Mar-05 2,680.50 Far East Hotel Mgmt & Consultancy Inc. T-1 036 5675 7-Feb-05 2,884.10 Far East Hotel Mgmt & Consultancy Inc. T-1037 5676 7-Feb-05 1,527.27 Far East Hotel Mgmt &Consultancy Inc. T-1038 5776 31-Mar-05 152.73 Far East Hotel Mgmt &Consultancy Inc. T-1 039 5788 31-Mar-05 1,527.27 Far East Hotel Mgmt &Consultancy Inc. T-1040 5756 12-Mar-05 1,527.27 Far East Hotel Mgmt &Consultancy Inc. T-1 041 5759 1-Feb-05 1,384.09 Far East Hotel Mgmt & Consultancy Inc. T-1042 5760 2-Mar-05 458.18 Far East Hotel Mgmt &Consultancy Inc. T-1043 5763 12-Mar-05 1,094.09 Far East Hotel Mgmt &Consultancy Inc. T-1 044 5823 31-Mar-05 131.45 FH Commercial Inc T-1 055 20372 24-Jan-05 7,272.73 FH Commercial Inc T-1 056 20442 8-Feb-05 3,860.50 FH Commercial Inc T-1 057 20523 21-Feb-05 464.00 FH Commercial Inc T-1 058 20524 21-Feb-05 2,413.90 FH Commercial Inc T-1059 20530 21-Feb-05 1,020.00 FH Commercial Inc T-1063 20474 15-Feb-05 372.80 FH Commercial Inc T-1064 20604 9-Mar-05 3,600.00 FH Commercial Inc T-1065 20605 15-Mar-05 10,181 .82 Filemix Systems & Services Inc T-1067 667 8-Mar-05 3,732.20 Forza Kemika Ag. Inc T-1069 10750 16-Mar-05 262.50 General Instrument Corporation T-1072 40 30-Mar-05 4,090.91 Gilbilt Industrial Marketing T-1074 9970 4-Mar-05 249.75 GLJ Safety and Industrial Sales Inc. T-1 076 789 1-Mar-05 138.00 GLJ Safety and Industrial Sales Inc. T-1077 790 19-Feb-05 150.55 GLJ Safety and Industrial Sales Inc. T-1077 790 19-Feb-05 602.18 GLJ Safety and Industrial Sales Inc. T-1078 791 19-Feb-05 917.73 ~lJr~ v

C.T.A. CASE NO. 7620 32 DECISION GLJ Safety and Industrial Sales Inc. T-1 079 793 19-Feb-05 168.75 GLJ Safety and Industrial Sales Inc. T-1 080 793 19-Feb-05 1,434.65 GLJ Safety and Industrial Sales Inc. T-1 081 803 2-Mar-05 201 .82 GLJ Safety and Industrial Sales Inc. T-1 082 810 10-Mar-05 121 .82 GLJ Safety and Industrial Sales Inc. T-1083 811 10-Mar-05 752.73 GLJ Safety and Industrial Sales Inc. T-1084 815 16-Mar-05 127.27 GLJ Safety and Industrial Sales Inc. T-1085 819 16-Mar-05 577.82 GLJ Safety and Industrial Sales Inc. T-1086 823 30-Mar-05 396.36 GLJ Safety and Industrial Sales Inc. T-1 089 824 30-Mar-05 13.64 GLJ Safety and Industrial Sales Inc. T-1090 825 30-Mar-05 627.27 GNS Tire & Service Center Inc. T-1104 3139 23-Feb-05 2,159.09 GNS Tire & Service Center Inc. T-11 05 3140 23-Feb-05 30.91 GNS Tire & Service Center Inc. T-1106 3141 23-Feb-05 2,354.55 GNS Tire & Service Center Inc. T-1107 3323 2-Mar-05 2,618.18 GNS Tire & Service Center Inc. T-11 08 3350 10-Mar-05 472.73 GNS Tire & Service Center Inc. T-11 09 3005 5-Jan-05 2,472.73 GNS Tire & Service Center Inc. T-1110 3383 15-Mar-05 1,197.27 GNS Tire & Service Center Inc. T-1111 3464 15-Mar-05 396.36 GNS Tire & Service Center Inc. ·T-1112 3470 29-Mar-05 472.73 GNS Tire & Service Center Inc. T-1115 3471 29-Mar-05 1,827.73 Gomar Industrial Sales T-1129 203 14-Mar-05 9,178.72 Gryke Scientific Instruments trading T-1132 401 31-Mar-05 1,686.00 Gryke Scientific Instruments trading T-1133 403 31-Mar-05 1,188.00 Hydrauking Industrial Corp T-1141 2346 16-Mar-05 463.91 Infinity Industrial Sales Corp T-1144 88929 31-Jan-05 5,532.00 Infinity Industrial Sales Corp T-1145 89994 9-Mar-05 17,361 .92 Infinity Industrial Sales Corp T-1146 90501 11-Mar-05 9,237.20 Infinity Industrial Sales Corp T-1147 90616 15-Mar-05 148.20 Infinity Industrial Sales Corp T-1148 90680 16-Mar-05 7,482.50 Infinity Industrial Sales Corp T-1149 90697 17-Mar-05 6,922.00 Infinity Industrial Sales Corp T-1150 90829 19-Mar-05 9,794.48 Infinity Industrial Sales Corp T-1151 ·91109 29-Mar-05 37,000.00 Infinity Industrial Sales Corp T-1152 91110 29-Mar-05 10,976.00 Infinity Industrial Sales Corp T-1153 91116 30-Mar-05 12,609.60 JRB Paint Center/Ref Aircon & Elec Supply T-1176 32947 12-Mar-05 8,570.73 JRB Paint Center/Ref Aircon & Elec Supply T-1177 32948 12-Mar-05 3,248.81 JRB Paint Center/Ref Aircon & Elec Supply T-1178 32950 12-Mar-05 679.55 JRB Paint Center/Ref Aircon & Elec Supply T-1185 32944 5-Mar-05 5,468.18 JRB Paint Center/Ref Aircon & Elec Supply T-1189 32941 24-Feb-05 616.82 JRB Paint Center/Ref Aircon & Elec Supply T-1190 34501 12-Mar-05 490.91 JRB Paint Center/Ref Aircon &Elec Supply T-1191 34505 18-Mar-05 514.91 JRB Paint Center/Ref Aircon & Elec Supply T-1192 34509 22-Mar-05 3,836.91 John Dave Construction & Supply &Gen mdse T-1198 111 8-Jan-05 3,127.27 John Dave Construction & Supply &Gen mdse T-1199 114 10-Jan-05 403.64 John Dave Construction & Supply &Gen mdse T-1200 157 14-Mar-05 954.55 John Dave Construction & S~pply & Gen mdse T-1201 115 2-Feb-05 527.27 John Dave Construction & Supply & Gen mdse T-1202 159 31-Mar-05 2,269.09 John Dave Construction & Supply &Gen mdse T-1203 160 31-Mar-05 14,545.45 Juneau Industrial Corp T-1215 71607 18-Mar-05 538.01 Juneau Industrial Corp T-1216 71723 30-Mar-05 1,789. 85 41 4 ~

C.T.A. CASE NO. 7620 33 DECISION Junna Industrial Corp T-1217 57978 15-Feb-05 3,604.30 Junna Industrial Corp T-1218 57992 21-Feb-05 1,470.00 Junna Industrial Corp T-1219 58027 28-Feb-05 575.00 Junna Industrial Corp T-1220 58049 7-Mar-05 23,957.40 Junna Industrial Corp T-1221 58076 11-Mar-05 688.50 Junna Industrial Corp T-1222 58081 12-Mar-05 8,541 .00 Junna Industrial Corp T-1223 58138 30-Mar-05 295.20 Keana Printing Services T-1233 1081 7-Mar-05 202.73 King's Engineering Sales T-1238 2916 4-Mar-05 19,073.51 KLG International Inc T-1242 10320 14-Mar-05 216.00 K-Lite Systems innovations Inc T-1243 794 22-Mar-05 1,162.00 K-Lite Systems innovations Inc T-1244 795 22-Mar-05 1,746.00 K-Lite Systems innovations Inc T-1245 796 22-Mar-05 1,800.00 Komstak Incorporated Tc1247 28645 21-Mar-05 89.00 Komstak Incorporated T-1248 28681 30-Mar-05 1,270.78 Le Price International Corp T-1253 4985 18-Mar-05 25,207 .90 Mabuhay vinyl Corp T-1277 216177 30-Nov-04 13,883.37 Machinery Reliability Systems Inc. T-1279 58 4-Mar-05 3,773.52 Machinery Reliability Systems Inc. T-1280 59 4-Mar-05 3,041.28 Machinery Reliability Systems Inc. T-1281 60 4-Mar-05 628.92 Machinery Reliability Systems Inc. T-1282 61 4-Mar-05 628.92 Magiclub Inc. T-1287 2958 4-Mar-05 67.26 Mhe-demag (P) Inc T-1292 13158 18-Mar-05 2,9 14.90 Monark Equipment Corporation T-1293 ps180000666 28-Feb-05 3,780.55 Monark Equipment Corporation T-1294 ps1800006678 7-Mar-05 1,262.73 Monark Equipment Corporation T-1294 ps180000690 16-Mar-05 307 .18 Monark Equipment Corporation T-1295 ps180000691 16-Mar-05 1,347 .82 Monark Equipment Corporation T-1298 ps180000697 18-Mar-05 567.64 Monark Equipment Corporation T-1299 ps180000698 18-Mar-05 408.36 Monark Equipment Corporation T-1300 ps180000700 22-Mar-05 810.36 Monark Equipment Corporation T-1301 ps180000715 30-Mar-05 11 ,230.82 Monark Equipment Corporation T-1302 ps180000716 30-Mar-05 915.27 Motorplaza Inc T-1312 40543 11-Mar-05 225.45 Motorplaza Inc T-1313 40544 11-Mar-05 146. 36 Motorplaza Inc T-1314 40545 11-Mar-05 751 .36 Motorplaza Inc T-1315 40330 11-Feb-05 270.00 Motorplaza Inc T-1316 40331 11-Feb-05 270.00 Motorplaza Inc T-1317 40178 27-Jan-05 183.64 Motorplaza Inc T-1318 40179 27-Jan-05 968.18 Motorplaza Inc T-1319 40182 27-Jan-05 80.45 Motorplaza Inc T-1320 40183 27-Jan-05 1,875.45 Motorplaza Inc T-1321 40205 28-Jan-05 751 .36 Motorplaza Inc T-1322 40655 28,-Mar-05 120.45 Motorplaza Inc T-1323 41107 28-Mar-05 504.54 Motorplaza Inc T-1325 139457 21-Mar-05 636. 82 Motorplaza Inc T-1326 41101 28-Mar-05 11 8. 18 Motorplaza Inc T-1327 41102 28-Mar-05 2,690.91 Motorplaza Inc T-1330 41108 28-Mar-05 305.45 Multisystem Industrial Sales & Services Inc T-1331 8955 2-Mar-05 2,867.94 Multisystem Industrial Sales & Services Inc T-1 332 8979 14-Mar-05 11 6. 50 41~

C.T.A. CASE NO. 7620 34 DECISION Newburg Commercial Inc T-1341 42080 21-Mar-05 445.50 Newburg Commercial Inc T-1342 42081 21-Mar-05 1,394.85 Newburg Commercial Inc T-1343 42075 4-Mar-05 44.60 Newburg Commercial Inc T-1344 42076 14-Mar-05 795.75 Newburg Commercial Inc T-1345 42077 15-Mar-05 123.57 Newburg Commercial Inc T-1346 42078 15-Mar-05 150.49 Newburg Commercial Inc T-1363 42079 15-Mar-05 272.46 Newburg Commercial Inc T-1364 42082 21-Mar-05 1,861 .37 Newburg Commercial Inc T-1365 42120 23-Mar-05 504.12 Newburg Commercial Inc T-1366 42121 23-Mar-05 97.36 Newburg Commercial Inc T-1367 42122 23-Mar-05 2,286.90 Newburg Commercial Inc T-1368 42123 28-Mar-05 706.30 Newburg Commercial Inc T-1369 42124 28-Mar-05 184.47 Newburg Commercial Inc T-1370 42125 28-Mar-05 604.12 Newton Electrical Equipment Company, Inc. T-1383 4024 31-Mar-05 500.00 Newton Electrical Equipment Company, Inc. T-1385 4025 31-Mar-05 2,200.00 Newtrends International Corporation T-1386 11009 18-Feb-05 19,748.18 Norvic Drugs Corporation T-1395 5310 1-Mar-05 3,767.55 Norvic Drugs Corporation T-1396 5311 1-Mar-05 2,894.80 Norvic Drugs Corporation T-1397 5312 1-Mar-05 2,183.57 Norvic Drugs Corporation T-1398 5313 1-Mar-05 1,372.64 Norvic Drugs Corporation T-1399 5323 4-Mar-05 1,158.86 Norvic Drugs Corporation T-1401 4015 5-Jan-05 1,252.14 Norvic Drugs Corporation T-1402 4016 5-Jan-05 330.91 OSA Industries Phils. , Inc. T-1411 2984 11-Jan-05 4,500.00 OSA Industries Phils., Inc. T-1412 2979 11-Jan-05 11 ,700.00 Peridot Parts Sales & Supply T-1415 2317 7-Mar-05 138.00 PG Scientific & Medical Supply T-1423 2539 14-Mar-05 209.45 Philgerma Manufacturing Inc. T-1426 5263 14-Mar-05 1,272.73 Philgerma Manufacturing Inc. T-1431 5264 16-Mar-05 2,727.27 Philippine Packings & Seals Corporation T-1434 3055 11-Mar-05 605.00 Pilipinas Shell Petroleum Corp T-1448 912671307 30-Mar-05 10,298.46 Pilipinas Shell Petroleum Corp T-1450 912641095 28-Feb-05 1,163.08 Pilipinas Shell Petroleum Corp T-1451 912641097 28-Feb-05 1,163.08 Pilipinas Shell Petroleum Corp T-1452 912641100 28-Feb-05 71,201 .73 Pilipinas Shell Petroleum Corp T-1453 912662334 21-Mar-05 6,931.78 Pilipinas Shell Petroleum Corp T-1454 912671301 30-Mar-05 27,952.97 Pilipinas Shell Petroleum Corp T-1455 912671303 30-Mar-05 4,413.63 Pilipinas Shell Petroleum Corp T-1456 912671303A 30-Mar-05 4,838.58 Pilipinas Shell Petroleum Corp T-1457 912671373 30-Mar-05 84,669.11 Pilipinas Shell Petroleum Corp T-1458 912671375 30-Mar-05 11 ,205.28 Pilipinas Shell Petroleum Corp T-1459 912671376 30-Mar-05 7,356.05 Pillars Rtw & Gen . Mdse. T-1461 9893 6-Mar-05 68.18 Pinnacle Parts Company Inc. T-1462 12444 16-Mar-05 1,496.00 Pinnacle Parts Company Inc. T-1463 12447 16-Mar-05 1,720.00 Pinnacle Parts Company Inc. T-1464 12463 22-Mar-05 5,950.00 Pinnacle Parts Company Inc. T-1465 12474 31-Mar-05 3,980.00 Power and Industrial Equipment Sales and Aftermarket Services, Inc. T-1481 581 14-Feb-05 1,420.00 Rojemson Chemical & Industrial Corporation T-1509 9534 16-Mar-05 6,796.82 41 ~

C.T.A. CASE NO. 7620 35 DECISION Rojemson Chemical &Industrial Corporation T-1510 9579 22-Mar-95 6, 760.91 Royal Jade Machinery Phils., Corp. T-1516 12306 21 -Mar-05 72,464.17 RS Components Limited (Phils.) T-1518 22689 Rl 7-Feb-05 2,829.43 RS Components Limited (Phils.) T-1519 22475 Rl 31-Jan -05 2,389.63 RS Components Limited (Phils.) T-1520 23307 Rl 22-Feb-05 1,183.89 RS Components Limited (Phils.) T-1521 23653 Rl 2-Mar-05 246.36 RS Components Limited (Phils.) T-1522 21926 Rl 19-Jan-05 291 .56 RS Components Limited (Phils.) T-1523 22296 Rl 27 -Jan-05 995.94 RS Components Limited (Phils.) T-1524 22567 Rl 3-Feb-05 561 .22 RS Components Limited (Phils.) T-1525 22635 Rl 5-Feb-05 280.61 RS Enterprises &Mill Supply T-1526 1661 26-Feb-05 5,000.00 RS Enterprises &Mill Supply T-1527 1660 9-Feb-05 872.73 RS Enterprises &Mill Supply T-1528 1663 15-Mar-05 4,836.00 RS Enterprises &Mill Supply T-1529 1662 10-Mar-05 581.82 RS Enterprises &Mill Supply T-1534 1664 29-Mar-05 229.09 S.K. Hardware &Gen . Merchandise T-1543 12490 18-Feb-05 743.64 S.K. Hardware &Gen . Merchandise T-1544 12496 23-Feb-05 63.64 S.K. Hardware &Gen . Merchandise T-1545 12497 23-Feb-05 221 .82 S.K. Hardware &Gen. Merchandise T-1546 12498 23-Feb-05 163.75· S.K. Hardware &Gen. Merchandise T-1547 12501 23-Feb-05 763. 64 S.K. Hardware &Gen. Merchandise T-1548 12502 23-Feb-05 1,908.93 S.K. Hardware &Gen . Merchandise T-1549 12506 23-Feb-05 101 .82 S.K. Hardware &Gen . Merchandise T-1550 12507 23-Feb-05 203.64 S.K. Hardware &Gen . Merchandise T-1551 12508 23-Feb-05 80.91 S.K. Hardware &Gen . Merchandise T-1552 12509 23-Feb-05 304.36 S.K. Hardware &Gen . Merchandise T-1553 12510 23-Feb-05 170.00 S.K. Hardware &Gen . Merchandise T-1554 12526 9-Mar-05 108.64 S.K. Hardware &Gen . Merchandise T-1555 12545 9-Mar-05 1,795.00 S.K. Hardware &Gen. Merchandise T-1556 12563 9-Mar-05 59.09 S.K. Hardware &Gen. Merchandise T-1557 12564 9-Mar-05 65.45 S.K. Hardware &Gen . Merchandise T-1558 12565 9-Mar-05 54.55 S.K. Hardware &Gen . Merchandise T-1559 12567 9-Mar-05 2,176.36 S.K. Hardware &Gen. Merchandise T-1560 12569 9-Mar-05 201 .82 S.K. Hardware &Gen . Merchandise T-1561 12570 9-Mar-05 87.27 S.K. Hardware &Gen . Merchandise T-1562 12572 9-Mar-05 100.00 S.K. Hardware &Gen . Merchandise T-1563 12566 9-Mar-05 3, 900.00 S.K. Hardware &Gen. Merchandise T-1564 12568 9-Mar-05 122.73 S.K. Hardware &Gen . Merchandise T-1565 12571 9-Mar-05 514.55 S.K. Hardware &Gen . Merchandise T-1566 12573 9-Mar-05 114.91 S.K. Hardware &Gen . Merchandise T-1569 12618 16-Mar-05 19.09 S.K. Hardware &General Merchandise T-1593 12406 2-Feb-05 3,456. 82 S.K. Hardware &General Merchandise T-1594 12546 9-Mar-05 163. 64 S.K. H9rdware &General Merchandise T-1595 12615 16-Mar-05 12,477.27 Severo Sy Ling , Inc. T-1606 103423 4-Mar-05 625.60 Simplex Industrial Corporation T-1612 120452 4-Mar-05 98. 64 Simplex Industrial Corporation T-161 3 121277 16-Mar-05 560. 00 Simplex Industrial Corporation T-1614 118921 7-Feb-05 585.45 Simplex Industrial Corporation T-1615 121276 16-Mar-05 181.82 Simpson's Philippines, Incorporated T-161 6 1270 9-Mar-05 4, 520. 00 Sky Computer and Office Supplies T-1617 85757 17-Mar-05 63.64 ~l fr

C.T.A. CASE NO. 7620 36 DECISION Sky Computer and Office Supplies T-1618 85905 21-Mar-05 259.09 Sky Computer and Office Supplies T-1619 86321 31-Mar-05 238.18 Tadchem Marketing T-1629 10 18-Mar-05 14,109.40 Taipan Enterprise T-1635 3142 21-Mar-05 968.55 Taipan Enterprise T-1636 3143 21-Mar-05 1,057.36 TCY Machinery Works T-1648 10322 3-Mar-05 1,500.00 Tech-Quipped Controls Trading T-1653 1415 28-Mar-05 5,000.00 Tech-Quipped Controls Trading T-1654 1416 28-Mar-05 28,943.68 Tech-Quipped Controls Trading T-1655 1418 29-Mar-05 9,350.00 Tech-Quipped Controls Trading T-1656 1419 29-Mar-05 2,100.00 The Mouse House, Inc. T-1671 1886 29-Jan-05 1,922.73 The Mouse House, Inc. T-1672 1893 3-Feb-05 254.55 The Mouse House, Inc. T-1673 1892 3-Feb-05 1,368.18 The Mouse House, Inc. T-1674 2014 23-Mar-05 668.18 Theo-Pam Trading Corporation T-1675 138974 28-Mar-05 1,527 .27 Theo-Pam Trading Corporation T-1676 141725 28-Mar-05 240.45 Toyota Dagupan City, Incorporated T-1684 60696 15-Mar-05 133.21 Toyota Dagupan City, Incorporated T-1685 60803 28-Mar-05 300.90 Toyota Dagupan City, Incorporated T-1686 60282· 1-Feb-05 440.37 Toyota Dagupan City, Incorporated T-1687 60496 24-Feb-05 300.94 Toyota Dagupan City, Incorporated T-1688 60599 4-Mar,05 354.81 Toyota Dagupan City, Incorporated T-1689 60600 4-Mar-05 524.91 Toyota Dagupan City, Incorporated T-1690 60601 4-Mar-05 607 .80 Toyota Dagupan City, Incorporated T-1691 60787 28-Mar-05 341.35 Toyota Dagupan City, Incorporated T-1693 60167 20-Jan-05 2,492.02 Toyota Dagupan City, Incorporated T-1694 60187 21-Jan-05 233.12 Ultimate Option Gunworks &Accessories T-1696 1559 12-Feb-05 750.91 Ultrapure Chemrock Corporation T-1697 2824 22-Mar-05 28,181.82 Unisafe Industrial Company T-1701 2929 21-Mar-05 2,272.73 Unisafe Industrial Company T-1702 2822 18-Feb-05 2,272.73 Up-Town Industrial Sales, Inc. T-1714 31756 4-Mar-05 7,168.40 Up-Town Industrial Sales, Inc. T-1715 31793 4-Mar-05 282.24 Up-Town Industrial Sales, Inc. T-1716 32105 10-Mar-05 29,028.80 Up-Town Industrial Sales, Inc. T-1727 28701 7-Jan-05 288.02 Up-Town Industrial Sales, Inc. T-1728 28702 7-Jan-05 2,901 .54 Up-Town Industrial Sales, Inc. T-1729 28966 12-Jan-05 21 .90 Up-Town Industrial Sales, Inc. T-1730 30167 1-Feb-05 5,091.50 Up-Town Industrial Sales, Inc. T-1731 30171 1-Feb-05 5,091 .50 Up-Town Industrial Sales, Inc. T-1732 30386 7-Feb-05 11 ,926.00 Up-Town Industrial Sales, Inc. T-1733 31792 4-Mar-05 634.00 Up-Town Industrial Sales, Inc. T-1734 32329 14-Mar-05 635.00 Up-Town Industrial Sales, Inc. T-1735 32438 16-Mar-05 12,012.60 Up-Town Industrial Sales, Inc. T-1736 32588 17-Mar-05 497.10 Up-Town Industrial Sales, Inc. T-1737 32782 21-Mar-05 2,079.00 Up-Town Industrial Sales, Inc. T-1738 32869 23-Mar-05 8,361.00 Up-Town Industrial Sales, Inc. T-1739 32900 23-Mar-05 46,810.00 Up-Town Industrial Sales, Inc. T-1740 33016 29-Mar-05 237.00 Up-Town Industrial Sales, Inc. T-1741 33048 30-Mar-05 6,897.60 Up-Town Industrial Sales, Inc. T-1742 33105 30-Mar-05 5,069.50 Up-Town Industrial Sales, Inc. T-1743 33206 31-Mar-05 448.26

C.T.A. CASE NO. 7620 37 DECISION Valley Technologies, Inc. T-1754 1148 28-Mar-05 4,136.00 West Point Guns &Sportswear T-1756 12292 12-Feb-05 138.41 Wise Industrial Systems, Inc. T-1765 2093 4-Mar-05 2,577.96 WM. H. Rennolds Company, Inc. T-1768 17421 1-Mar-05 29,577.27 WM. H. Rennolds Company, Inc. T-1769 17434 5-Mar-05 4,867.57 WM. H. Rennolds Company, Inc. T-1770 17435 5-Mar-05 4,466.45 WM. H. Rennolds Company, Inc. T-1771 17507 30-Mar-05 654.55 WM. H. Rennolds Company, Inc. T-1773 17470 18-Mar-05 649.01 WM. H. Rennolds Company, Inc. T-1774 17479 12-Mar-05 12,272.73 Worthwater Tech no logy Corporation T-1776 256 29-Mar-05 4,595.46 Wyler Enterprises, Inc. T-1778 21365 9-Mar-05 959.55 Wyler Enterprises, Inc. T-1779 21366 9-Mar-05 2,751 .36 Wyler Enterprises, Inc. T-1780 21414 16-Mar-05 1,254.55 Wyler Enterprises, Inc. T-1781 21415 16-Mar-05 177.27 Wyler Enterprises, Inc. T-1784 21309 3-Mar-05 236.36 Wyler Enterprises, Inc. T-1785 21438 18-Mar-05 400.00 Yana Chemodities, Inc. T-1789 142391 4-Feb-05 330.00 Yana Chemodities, Inc. T-1790 144142 18-Mar-05 8,227.27 Yana Chemodities, Inc. T-1791 144345 29-Mar-05 6,507.00 YRS Motorcycle Modifications, Inc. T-1797 4244 10-Mar-05 525.37 YRS Motorcycle Modifications, Inc. Tc1799 4242 10-Mar-05 952.82 YRS Motorcycle Modifications, Inc. T-1800 6210 31-Mar-05 221 .82 Zab Enterprises T-181 0 20101 24-Jan-05 77.73 Zab Enterprises T-1811 20468 15-Feb-05 257.54 Zab Enterprises T-1812 19913 25-Jan-05 16,656.25 Zab Enterprises T-1813 20590 22-Feb-05 2,414.54 Zab Enterprises T-1814 20703 3-Mar-05 1,579.72 Zab Enterprises T-1815 20834 10-Mar-05 4,909.09 Zab Enterprises T-1816 20915 19-Mar-05 402.73 Zab Enterprises T-1817 20923 19-Mar-05 277.73 Zab Enterprises T-1818 20925 19-Mar-05 1,272.73 Zab Enterprises T-1819 21036 22-Mar-05 626.00 Zab Enterprises T-1820 21100 31-Mar-05 363.64 Zab Enterprises T-1821 21101 31-Mar-05 363.64 Zenith Electrical &Industrial Supply Corporation T-1846 28230 14-Jan-05 4,647.50 TOTAL 2,605,989.48 Input VAT on importations Supplier's Name Exh No. Entry Date OR Date Input tax Sulzer Pumps Asia Pacific T-1897 17-Jan-05 19-Jan-05 40,930.00 Access Frontier tech Ptd Ltd T-1898 3-Feb-05 3-Feb-05 51 ,778.00 Emerson Process Mgmt T-1899 16-Feb-05 9-Mar-05 82,270.00 Wier Valve &Controls T-1900 4-Mar-05 15-Mar-05 77,759.00 Eletrocatalytic Products Pte Ltd T-1902 26-Feb-05 2-Mar-05 6,641.00 T-1903 1-Mar-05 9-Mar-05 9,736.00 SNRI Route Du Treuil T-1912 10-Mar-05 13,682.00 419 w

C.T.A. CASE NO. 7620 38 DECISION Quinta Raddison Ltd T-1915 30-Mar-05 400,458.00 Quinta Raddison Ltd T-1876 23-Mar-05 26,577.00 Quinta Raddison Ltd T-1877 28-Mar-05 17,163.00 Agenthur H. Willems T-1 881 10-Feb-05 5,179.00 LBP receipts T-1882 9-Feb-05 11 ,110.00 T-1883 8-Feb-05 11,583.00 T-1884 15-Mar-05 4,055.00 T-1885 9-Mar-05 20,511 .00 T-1891 28-Mar-05 4,031.00 BOG receipts T-1 920 Jan-05 2,625.00 T- 1921 10-Jan-05 2,961 .00 T-1 922 14-Mar-05 12,573.00 T-1 923 9-Feb-05 323.00 T-1 924 6-Feb-05 697.00 T-1925 22-Jan-05 2,494.00 T-1926 11-Mar-05 5,265.00 T-1927 18-Feb-05 3,054.00 T-1928 16-Mar-05 8,609.00 T-1929 5-Jan-05 2,265.00 T-1930 3,540.00 T-1931 10-Mar-05 100.00 T-1933 21-Mar-05 2,421 .00 T-1934 21-Jan-05 1,880.00 T-1935 30-Mar-05 60.00 T-1938 28-Mar-05 2,813.00 TOTAL 835,143.00 I Total Deduction for Second Quarter 3,581 ,899.56 4 20

C.T.A. CASE NO . 7620 39 DECIS ION ANNEX "B" THIRD QUARTER Input VAT on purchases of services Supplier's Name Exh No. OR No. OR Date Input tax Ocean Perch Multibless En terprises U-282 2538 24-Feb-05 3,454.55 Peoples Air Cargo and Warehousing Co. Inc U-296 614615 1-Mar-05 1,193.45 Philippine Skylanders Inc U-324 525633 18-Feb-05 31 .07 Philippine Skylanders Inc U-325 530615 10-Mar-05 40.43 Pinnacle Parts Company Inc. U-334 2704 24-Mar-05 4,660.00 TOTAL 9,379.50 Input VAT on purchases of goods Invoice Supplier's Name Exh No. Invoice No. Date Input tax Anson Emporium U-529 53663 20-Jan-05 16.37 Anson Emporium U-529 53663 20-Jan-05 1,645.46 BCM Marketing U-564 6719 4-Mar-05 218.55 Bitstop Inc. U-616 3487 1-Feb-05 181 .82 Carworld Inc U-664 84972 2-Jun-04 219.64 Carworld Inc U-665 87107 6-Dec-04 1'128.20 Carworld Inc U-666 88319 3-Feb-05 3,157.27 Carworld Inc U-667 88494 21-Mar-05 242.50 Chemalloy Resources U-699 2826 17-Mar-05 5,229.78 Chemalloy Resources U-706 2824 17-Mar-05 3,644.00 Chemalloy Resources U-707 2825 17-Mar-05 728.80 Dotcom Inc U-768 2253 21-Jan-05 54.55 Dy auto Supply & Hardware U-770 99450 14-Jan-05 382.50 Edupro Inc U-792 6733 28-Mar-05 561 .81 Nueva Fortuna Merchandising U-1215 13438 19-Jan-05 530.65 Nueva Fortuna Merchandising U-1216 13596 21-Mar-05 50.00 SK Hardware & General merchandise U-1345 12447 10-Feb-05 115.91 SK Hardware & General merchandise U-1346 12471 16-Feb-05 306.82 SK Hardware & General merchandise U-1347 12475 16-Feb-05 568.18 SK Hardware & General merchandise U-1348 12574 9-Mar-05 160.00 SK Hardware & General merchandise U-1349 12575 9-Mar-05 358.30 SK Hardware & General merchan9ise U-1350 12576 9-Mar-05 378.18 SK Hardware & General merchandise U-1351 12611 16-Mar-05 212.73 SK Hardware & General merchandise U-1352 12612 16-Mar-05 15.91 SK Hardware & General merchandise U-1353 12613 16-Mar-05 381.82 SK Hardware & General merchandise U-1354 12616 16-Mar-05 1,287.49 SK Hardware & General merchandise U-1355 12617 16-Mar-05 86.36 SK Hardware & General merchandise U-1356 12619 16-Mar-05 150.00 SK Hardware & General merchandise U-1357 12620 16-Mar-05 229.09 42 1~

C.T.A. CASE NO. 7620 40 DECISION SK Hardware & General merchandise U-1358 12621 16-Mar-05 3,113.64 SK Hardware & General merchandise U-1359 12624 16-Mar-05 133.09 SK Hardware & General merchandise U-1360 12656 30-Mar-05 352.18 SK Hardware & General merchandise U-1361 12657 30-Mar-05 118.18 SK Hardware & General merchandise U-1362 12658 30-Mar-05 540.91 SK Hardware & General merchandise U-1363 12661 30-Mar-05 317.09 SK Hardware & General merchandise U-1364 12662 30-Mar-05 19.09 SK Hardware & General merchandise U-1365 12667 30-Mar-05 350.00 TOTAL 27,186.87 Input VAT on importation of goods Supplier's Name Exh No. Entry No. Entry Date OR Date Input tax Flower Serve Spain SA U-1703 58787574 2-Dec-04 3-Mar-05 6,795.00 Bosch rexroth Pte Ltd U-1695 56762912 23-Nov-04 16-Feb-05 1,738.00 Quinta Raddison Ltd. U-1722 61241205 22-Mar-05 22-Mar-05 240.00 Wiix & Hoeglund Public Co. Inc. U-1752 58743526 16-Feb-05 16-Feb-05 93,216.00 Bosch rexroth Pte Ltd U-1761 61268374 20-Mar-05 21-Mar-05 4,238.00 Quinta Raddison Ltd . U-1788 61241205 22-Mar-05 21-Mar-05 30,703.00 TOTAL 136,930.00 Total Deduction for Third Quarter

C.T.A. CASE NO. 7620 41 DECISION ANNEX "C" FOR THE MONTH OF OCTOBER Input VAT on purchases of services Supplier's Name Exh No. OR No. OR Date Input tax Alexander Forbes Phils Risk Services Inc V-7 2864 7-Feb-05 189,890.28 Gentech Construction V-101 30 9-Nov-05 124,282.02 TOTAL 314,172.30 Input VAT on purchases of goods Invoice Invoice Supplier's Name Exh No. No. Date Input tax Consolidated Industrial Gases Inc V-361 11445 17-Feb-05 227.27 TOTAL 227.27 Input VAT on importations Entry Supplier's Name Exh No. Entry No. Date OR Date Input tax Emerson Process Management V-873 60028412 18-Feb-05 18-Feb-05 24,891.00 Mcmaster Carr V-929 5-Mar-05 3,427.00 TOTAL 28,318.00 Total Deduction for October 342,717 .57 &» 42 3