TEAM ENERGY CORPORATION (Formerly Mirant Pagbilao Corporation and Southern Energy Quezon, Inc.) v. COMMISSIONER OF INTERNAL REVENUE (Consolidated with Case No. 7298)

REPUBLIC OF THE PHILIPPIN ES COURT OF TAX APPEALS QUEZON CITY FIRST DIVISION TeaM ENERGY CORPORATION CTA Case Nos. 7229 and 7298 (Formerly Mirant Pagbilao Corporation and Southern Energy Quezon, Inc.), Petition er, - versus - Members: ACOSTA, Chairperson !' BAUTISTA, and CASANOVA, JJ. COMMISSIONER OF INTERNAL REVENUE, Promulgated: Respondent. OCT 0 5 2009 ; 2~ 1 s-rM x---------------------------------------------------------------------------------------------- -----x DECISION CASANOVA, J. : The instant Petition for Review is a claim for refund or issuance of ta x credit certificate of alleg ed unutilized input va lue-added ta x (VAT) on dom esti c purcha ses and importation of goods and services attributab le to zero-rated sa les in the tota l ,... I amo unt of P83,465,353.50 for all quarters of ca lendar year 2003. Petitioner is a domestic corporation organi zed and existing under and by vi rtue of Philippine laws, with principa l office at Pagbilao Grande I sland, Pagbilao, Quezon 1. It is engaged in th e busin ess of power generation and th e subsequent sale to th e Nationa l Power Corporation (NPC) und er a Build , Operate, Transfer ( BOT)~ 1 Joint Stipulation of Facts and Issues (JSFl). Par. 1 of Admitted Facts. Rollo. p. 125. 1 J.07

DECISION C.T.A. CASE NOS. 7229 & 7298 agreement2. Petitioner is registered with the Bureau of Internal Revenue (BIR) as a VAT taxpayer in accordance with Section 236 of th e National Internal Revenue Code (1997 NIRC) as evidenced by BIR Certificate of Registration bearing RDO Control No . 96-600-002498 with Ta xpayer Identification No. 001-726-8703. Respondent, on the other hand, is the Commissioner of Internal Revenue who is du ly appointed and empowered to perform th e duties of his office, including, among others, the duty to act and approve claim for refund or issuance of tax credit certificate of overpaid internal revenue ta xes as provided by law, with office address at the BIR National Office Building, Agham Road, Diliman, Quezon City, where he may be served with summons and other court processes4 . Petitioner was originally registered with the Securities and Exchange Commission (SEC) under the name " Hopewell Power (Philippines ) Corporation" which was subsequently chang ed to " South ern En ergy Quezon, Inc. " On September 22, 1999. On June 28, 2001, petitioner's name was again changed to " Mirant Pagbilao Corporation " 5. On November 13, 2002 , petitioner fil ed with th e BIR Audit Information, Ta x Exemption and Incentives Division, an Application for Effective Zero-Rate of its supply of electricity to th e NPC, whi ch wa s subsequ ently approved6. For th e calenda r year 2003, petition er fil ed its original and amend ed VAT returns on the following da tes7: QUARTER ORIGINAL AMENDED 1ST RETURN RETURN July 25 2003 April 25 2003 " Ibid .. paragraph I of .J oi ntl y Stipul ated Facts. Rollo. p. 126 . 3 Ibid .. pa ragrap h 2. 4 Supra. note 1. paragraph 2. 5 JSF J. paragraph 3 of Jointl y Stipulated Facts. Rollo. p. 126. 6 Ibid .. paragraph 4. 7 Ibid .. paragrap hs 4- 8. l i.G3

DECISION ---�--- �------�-~ -~~-- - - - -----~�- C.T.A. CASE NOS. 7229 & 7298 Page 3 of 19 July 25, 2003 October 27 2003 2ND October 27 2003 - 3RD 4TH January 24 2004 July 26 2004 On December 17, 2004, petitioner filed an administrative claim for refund of unutilized input VAT with the Revenue District Office No. 60 at Lucena City on December 17, 2004 in the total amount of P83,465,353.508. On April 22, 2005, receiving no favorable response from respondent, petitioner filed a Petition for Review before this Court, docketed as CTA Case No. 7229, claiming for the refund of the amount of P15,085,320.31 corresponding to the 15t quarter VAT claim for the calendar year 2003 9 . On July 22, 2005 petitioner filed CTA Case No . 7298 for its corresponding judicial VAT refund claims for the 2nd to 4th quarters of 2003 summing up to P63,380,033.19 10 . In CTA Case No. 7229, respondent alleged the following Special and Affirmative Defenses11 : "4. Petitioner's alleged claim for refund is subject to administrative routinary investigation/examination by the Bureau of Internal Revenue; 5. The amount of P15,085,320 .31 being claimed by petitioner as alleged unutilized input VAT on domestic purchases of goods and services and importation of goods for the first quarter of 2003 is not properly documented; 6. The decision of the Supreme Court in the case of Maceda vs. Macaraig 223 SCRA 217 (1993) which states that the NPC is exempt from all ta xes, duties, fees, imposts, charges and restrictions of the Republic of the Philippines and its provinces, cities and municipalities, is not applicable to the instant petition. -a- What is being exempted in said decision is NPC per se and such 8 Ibid. paragraph 9. 9 Petition for Review. CTA Case No . 7229 Rollo (Ro ll o). pp. 1-6. 10 Petition fo r Rev iew. CTA Case No. 7298 . pp. 1-7. 11 Answer. Rollo. pp . 93-95. l iG J

DECIS I ON C.T.A. CASE NOS. 7229 & 7298 ' Page 4 of 19 exempt ion does not extend to the supplier such as the petitioner in th e insta nt case; 7. In an action for refund/credit, the burden of proof is on the ta xpayer to establish its right to refund, and failure to sustain the burden is fatal to the claim for refund/ credit; 8. Petitioner must show that it has comp lied with the provisions of Sections 204 (C) and 229 of the 1997 Ta x Code on the prescriptive period for claiming ta x refund/credit; 9. Claims for refund are construed strictly against the claimant for the same partake t he nature of exemption f rom taxa tion (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) ." In CTA Case No. 7298, respondent alleged the following Special and Affirmative Defenses 12 : "3 . He reiterates and repleads the preceding paragraphs of the Answer as part of his Special and Affirmative Defenses; 4. Petitioner's claim for refund is subject to administrative investigation/examination by t he respondent; 5. To support its claim, it is imperative for petitioner to prove the following, viz. a. The registration requirements of a value-added ta xpayer in compliance with Section 6(a) and (b) of the Revenue Regu lations No. 6-97 in relation to Section 4.107-1(a) of revenue Regulations No. 7-95, and Section 236 of the Tax Code, as amended; b. The invoicing and accounting requirements for VAT- registered persons, as well as the filing and payment of VAT in compliance with the provisions of Sections 113 and 114 of the Ta x Code as amended; c. Proof of comp liance with the prescribed checklist of requirements to be submitted involving claim for VAT refund in pursuance to Revenue Memorandum Order No. 53-98, otherwise there would be no sufficient~ 12 A nswer, CTA Case No. 7298 Rollo. pp . 234-238. 1 .i .i0

DECISION C. T.A. CASE NOS. 7229 & 7298 compliance with the filing of administrative claim for refund which is a condition sine qua non prior to the filing of judicial claim in accordance with the provision of Section 229 of the Ta x Code, as amended. It is worthy of emphasis that Section 112 (D) of the Ta x Code, as amended, requires the submission of complete documents in support of the application filed with the Bureau of Internal Revenue before the 120-day audit period shall apply, and before the taxpayer could avail of judici al remedies as provided for in the law. Hence, petitioner's failure to submit proof of compliance with the above-stated requirements warrants immediate dismissal of the petition for review . d. That the input taxes of P68,380,033.19 allegedly paid by the petitioner on its purchases of goods and services for the second, third and fourth quarters of the year 2003 were attributable to its zero-rated sales and such have not been applied against any output ta x and were not carried over in the succeeding ta xable quarter or quarters; e. That petitioner's administrative and judicial claims for tax credit or refund of the unutilized input ta x (VAT) was filed within two (2) years after the close of the ta xable quarter when the sales were made in accordance with Sections 112 (A) and (D) and 229 of the Ta x Code , as amended; f. That petitioner's domestic purchases of goods and services were made in the course of its trade or business, properly supported by VAT invoices and/ or official receipts and other documents, such as subsidiary purchase Journal, showing that it actually paid VAT in accordance with Sections 110 (A) ( 2) and 113 of the Ta x Code as amended, and in pursuance to Section 4.104-5 (a) & (b) of Revenue Regulations No . 7-95 (Re: Substantiation of Claims for Input Ta x Credit); g. The requirements as enumerated under Section 4.104-2 of the Revenue Regulations 7-95 . (Re: Persons who can avail of the Input Ta x Credits); 6. Furthermore, in an action for refund, the burden of proof is on the ta xpayer to establish its right to refund and failure to sustain the burden is fatal to the claim for refund/ credit. This is so because exemptions from ta xation are highly disfavored in law and he wh~

DECISION C.T.A. CASE NOS. 7229 & 7298 claims exemption must be able to justify his claim by t he clearest grant of organic or statutory law. An exemption f rom common burden cannot be permitted to exist upon vague implications (Asiatic Petroleum Co. {P.I} v. Llanes, 49 Phil. 466 cited in Collector of Internal revenue v. Manila Jockey Club, Inc., 98 Phil 670); 7. Claims for refund are construed strictly against the claimant for the same partake the nature of exemption from ta xation (Commissioner of Internal Revenue vs. Ledesma, 31 SCRA and 95) and as such, they are looked upon with disfavor (Western Mino/co Corp. vs. Commissioner of Internal Revenue, 124 SCRA 1211). " On August 24, 2005, petitioner filed a Motion for Consolidation 13 seeking to merge CTA Case Nos. 7229 and 7298. This Court granted said motion on October 12, 2005 14 . The parties submitted their Joint Stipulation of Facts and Issues15 on December 22, 2005 which this Court approved on January 3, 2006 16 . After trial, petitioner submitted its Formal Offer of Evidence17 on November 23, 2007 . This Court admitted all of petitioner's exhibits on January 10, 200818. Respondent, for his part, failed to present any evidence so that on June 17, 2008 he was declared by the Court to have waived his right to present evidence19. After considering the respective memorandum of the parties, filed on July 16, 2008 by the petitioner and on September 4, 2008 by the respondent, the case was submitted for decision on October 9, 2008 20.-@\ 13 Rollo. pp. 98-1 00. 14 Rollo. pp. I02 -1 03. 15 Rollo. pp. 125 -1 28. 16 Rollo, p. 129. 17 Rollo, pp. 596-64 7. 18 Rollo. pp. 704-707. 19 Rollo , p. 7 18. 20 Rollo. pp. 720-745 and pp. 756-770. respectively. . .. . ') l.J..1t..

DECISION C.T .A. CAS E NOS. 7229 & 7298 On February 24, 2009, petitioner filed a Motion to Change Caption 21 praying that the caption of the instant case be changed to "TeaM Energy Corporation (formerly Mirant Pagbilao Corporation and Southern Energy Quezon. Inc.l Petitione0 vs. Commissioner of Internal revenue 2009. On March 24, 2009, this Court granted said prayer via a Resolution . The parties jointly stipulated22 on the following issues for resolution by this Court, to wit: "1. Whether or not the power generation services rendered by [p]etitioner to NPC are subject to zero percent (0%) VAT pursuant to Section 108(6)(3) of the Ta x Code; 2. Whether or not [p]etitioner has unutilized creditable input VAT for the four quarters of CY 2003 arising from its domestic purchases of goods and services and importation of goods amounting to Php83,465,353.50 that can be a proper object of a claim for refund pursuant to Section 108(6)(3) and Section 112(A) of the Ta x Code; 3. Whether or not the unutilized creditable input ta xes for the four quarters of CY 2003 are substantiated by proper invoices and official receipts; 4. Whether or not the unutilized creditable input VAT payments for the four quarters of CY 2003 were carried over to and unutilized in the succeeding ta xable quarter(s) or applied against any of the output VAT liability of the [p]etitioner; and 5. Whether or not [p]etitioner is entitled to a refund and/or issuance of a tax credit certificate for its unutilized input VAT payments in the amount of Php83,465,353.50." Petitioner argues that under Republic Act (RA) No. 6395 the NPC is exempt from the payment of all forms of ta xes. Petitioner added that the Supreme Court ruling in Ernesto M. Maceda vs. Hon. Catalina Macarairl Jr. 23 has confirmed this. 24 ~ " 1 Rollo. pp. 776-777. "~ .J SF I ,pp. 127-1 28. n G.R . No. 8829 L May 3 1. 199 1. l i. l J

DECISIO N C.T.A. CASE NOS . 7229 & 7298 Respondent, however, countered that the ruling in the Macaraig Case is not applicable to petitioner; that the one being exe mpted in said decision is NPC per se and such exemption does not extend to suppliers such as petitioner in the instant case25 . We find respondent's contention without merit. The first issue is legal in nature but is not one of novel character. The issue of whether or not the power generation services rendered by petitioner to NPC are subject to zero percent (0% ) VAT pursuant to Section 108 (B) of the 1997 National Internal Revenue Code (1997 NIRC) has already been resolved by this Court in the affirmative in a number of similar cases26. Being principally engaged in the business of power generation, petitioner's subsequent sale thereof to the NPC under a Build, Operate, Transfer ("BOT") scheme makes the power generation services it rendered subject to zero percent (0%) VAT pursuant to Section 108 (B) (3) of the 1997 NIRC, as amended, which provides: "SEC. 108. Value-Added Tax on Sale of Services and Use or Lease of Prop erties. - XXX XXX XXX (B) Transactions Subject to Zero Percent (0%) Rate. - The following services performed in th e Philippines by VAT- registered persons shall be subject to zero percent (0% ) rate; ~ 24 Memorandum for th e Petitioner. Rollo. pp. 732- 733. 25 Answer. paragraph 6. Rollo. p. 94. 26 Miranr (?hils.) Mobile Corp. (fo rmerly S ou/hem Energy Mobile. Inc .) FS. Co mmiss ioner o(lnternal Re ,�enue, CTA Case Nos. 5939 & 5969. January 15. 2002 : Mirnnr :Va1"0tas Corp. (/ormerh � Sou them Ene rgy Nm �otas. Inc.) 1�s. Co mmissioner of 111/emal Re 1�emte. CT/\ Case Nos. 5936 & 5968 . h1nuar) 16. 2002: .\/irnnt (t\"m�otas !!) Corp. (formerly Southem Energy .Vm�o tas /1 Pm rer. Inc.) 1�s. Co mmissioner o{ lmemal Re ,�e nue. CTA Case Nos. 5944 & 5963. Janu ary 2 1. 2002: Miram Pagb ilao C01p. (fo rmerly So uthern Energy Que::on. Inc.) \'S. Commissione r of !ntemal Re1�enue. CT A Case No. 604 1. March 5. 2002: t\!imnt Nm�o tas Corporation (formerly Sou /h em E nergy Narotas Corporation. In c.) \'S. Com missioner of!ntemal Re 1�enue. CTA Case No. 6459. Ap ril 2 1. 2005: Mirant (Narotas II) Corporation (former~y So uthern Energy Na r oras II Power. Inc.) rs. Commissioner ofIn terna l Revenue. CTA Case No. 64 18. April 11. 2006.

DECI SION C.T .A. CAS E NOS. 7229 & 7298 XXX 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 xxx " In the case of Maceda vs. Macarai!/1/ the total exemption of National Power Corporation (NPC) from all kinds of ta xes, whether direct or indirect, was already settled by the Supreme Court. The NPC's exemption from all kinds of ta xes was further explicated by the High Court in its Resolution dated June 8, 1993 resolving the same issue in a motion for reconsideration in the following manner: "A chronological review of the NPC laws will show that it has been the lawmaker's intention that the NPC was to be completely tax- exempt from all forms of taxes- direct or indirect. One common theme in all these laws is that the NPC must be enable to pay its indebtedness which, as P.D. No. 938 was P12 Billion in total domestic indebtedness, at any one time, and US$4 billion in total foreign loans at any one time . The NPC must be and has to be exempt from all forms of ta xes if this goal is to be achieved." From this ruling, the Secretary of the Department of Finance's Memorandum dated January 28, 1998, addressed to the Commissioner of Internal Revenue, with respect to the total exemption of NPC from all kinds of taxes and further ruled that purchases by NPC of electricity from independent power producers are subject to VAT at 0%. Pertinent portions of said memorandum read as follows: "As explained by the Supreme Court, the rationale for the NPC's tax exemption is to ensure cheaper power. If the SIR's recent view is to be implemented, the VAT, being an indirect ta x, may be passed on by the seller of electricity to NPC. Effectively, this means that electricity will be sold at a higher rate to the consumers . Estimates show that a 10% VAT on electricity which is purchased by NPC from its independent power producers will increase power cos~ 27 Supra. note 22. 11.1 5

DECIS I ON C.T.A. CASE NOS. 7229 & 7298 by about P109.4 million a month or about Pl.30 billion a year. The effect on the consumer is an additional charge of P0.059 per kilowatt-hour. The recognition of NPC's broad privilege will inure to the ultimate benefit of the Filipino consumer. In view of the foregoing and using the power of review granted to the Secretary of Finance under Section 4 of Republic Act No. 8424, the DOF upholds the ruling of the Supreme Court that the NPC is exempt under its charter and subsequent laws from all direct and indirect ta xes on its purchases of petroleum products and electricity. Thus, the purchases by NPC of electricity from independent power producers are subject to VAT at zero-rate." The second, third and fourth issues can actually be summarized by the fifth issue: whether or not petitioner is entitled to a refund and/or issuance of tax credit certificate for its unutilized VAT payments in the amount of P83,465,353.40. Petitioner bases its claim on Section 112(A) of the NIRC of 1997, as amended, wh ich allows the refund/tax credit of unutilized input VAT attributable to zero-rated or effectively zero-rated sales, to wit: "SEC. 112. Refunds or Tax Credits ofInput Tax.- (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 ta x credit certificate or refund of creditable input ta x due or paid attributable to such sa les, except transitional input ta x, to the extent that such input ta x has not been applied against output tax: Provide~ howeve0 That in the case of zero-rated sales under Section 106(A)(2)(a)(1), (2) and (B) and Section 108 (B)(1) and (2), the acceptable foreign currency exchange proceeds thereof had been du ly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provide~ further, That where the ta xpayer 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 ta x 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 sa l es.~ lil u

DECI SION C.T.A. CASE NOS. 7229 & 7298 Based from the above, the following requisites must be comp li ed with in order that petitioner will be entitled to a refund: 1. there must be zero-rated or effectively zero-rated sales; 2. that input taxes were incurred or paid; 3. that such input ta xes are attributable to zero-rated or effectively zero-rated sales; 4. that the input ta xes were not applied against any output VAT liability; and 5. that the claim for refund was filed within the two-year prescriptive period As resolved in the first issue, petitioner is principally engaged in the business of power generation and its sa le of its services to NPC is effectively subject to zero percent (0%) VAT. Going now to the second requirement, petitioner reflected the following zero- rated sales/receipts in the amount of P12,208,805,373.67 in its original and amended Quarterly VAT Returns for the four quarters of 2003 28 : CTA Exhibit Year Zero-Rated Case No. No. 2003 Sa lesiRecei pts 1st Quarter p 3,170,914,604.24 7229 C I X- 1 2nd Quarter 7298 D I X-2 3rd Quarter 3,034 ,739 ,252 .93 7298 E I X-4 4th Quarter 2,983,478,607 .66 7298 F /X- 9 3,019 ,672 ,908.84 Total p 12,208,805,373 .67 Verification showed that the afore-stated zero-rated sa les/ receipts were actually derived from petitioner's sale of electricity to NPC as evidenced by the invoices and official receipts29 issued by petitioner to NPC for the four quarters of 2003 which were summarized in the Schedule of Gross Receipts and Summary of Zero-Rated Sales 3~ 28 Exhi bits "C''. ''D". "E". " F" & "X- 1 to X- 16". 29 Included in Exh ibits �'Z- 1 to Z-1 57". .1o Exhibits "Y- 1 to Y-4". lil 7

DECISION C. T.A. CASE NOS. 7229 & 7298 However, out of the reported P12,208,805,373.67 zero-rated sales/receipts, the amount of P20,986,302.67 shall be denied VAT zero-rating for petitioner's failure to submit the corresponding official receipts. The computation is as follows: Per Exhibit W-1 Quarter OR No. Date Gross Receipts 3'd 1016 16-Jul-03 p 1,866, 123.04 3'd 1016 16-Ju l-03 3'd 1017 16-Jul-03 3,908 ,503.70 3'd 1017 16-Jul-03 1,859 ,027.46 3'd 1025 5-A ug - 0 3 3,652,973.76 3'd 1025 5-Aug-03 1,878 ,190.72 3'd 1026 5-Au g-03 3,337, 529 .38 3'd 1026 5-Au g-03 1,905 ,149 .3 9 2,578 ,805.22 Total p 20 ,986,302.67 Thus, petition er's total substantiated zero-rated sa les amounts to on ly P12,187,819,071.00, computed as follows: Declared zero- rated sales p 12,208 ,805 ,37 3.67 Less : Unsub stanti ated zero -rated sa les (20,986,302.67) Substantiated zero-rated sales p 12,187,819 ,071 .00 Consequently, only the portion of the input VAT claim attributable to the substantiated zero-rated sales of P12,187,819,071.00 will be considered for refund. The rate to be applied is based on th e total amount of reported zero-rated sales/rece ipts and is computed as follows: Substantiated zero- rated sa les p 12 ,187 ,8 19 ,071 .00 Divided by total declared zero-rated sales p 12 ,208 ,805,373 .67 Rate of substantiated zero-rated sales 99.83 % Having resolved that petitioner's sa les of electricity to NPC for the four quarters of 2003 in the amount of P12,187,8 19,071 .00 qualifies for VAT zero-rating under Section 108(8)(3) of the NIRC of 1997, as amended, we now determine the amount of input VAT attributable thereto in relation to the third requirement~ 1 1.18

DECISION C.T .A. CASE NOS. 7229 & 7298 As can be seen in its Quarterly VAT Returns31 for the four quarters of 2003, petitioner reported the following input ta xes in the total amount of P83,465,353.50, broken down as follows: CTA Exhibit Year 2003 Amount of Input Case No. No. Quarter VAT per Return 1st p 15,085,320 .3 1 7229 C I X-1 2nd 7298 D I X-2 3rd 15,898,643.56 7298 E I X-5 4th 21 '1 51 ,3 08 .57 7298 F I X-9 31,330,081 .06 Total p 83 ,465 ,353.50 In support of the input ta xes, petitioner presented a summary list of purchases (both on importations and domestic purchases) and the related Bureau of Customs (BOC) Import Entries and Internal Revenue Declarations (IEIRDs), BOC or bank official receipts, bank statements, suppliers' invoices and/ or official receipts and other pertinent documents which were verifi ed by the Court-commissioned independent CPA (ICPA). Upon this Court's review of the reports submitted by the ICPA as well as petitioner's supporting documents, the following input taxes in the total amount of P12,642,304.32 should be disallowed from petitioner's claim for failure to meet the substantiation requirements under Sections llO(A) and 113(A) of the NIRC of 1997, as implemented by Sections 4.104-1, 4.104-5 and 4.108-1 of the Revenue Regulations No.7-95. The breakdown is shown below: Findings Ex h . Amount of Input Tax f--- - - - - - -- ----- ---- --- .. - - ---- - �-- - - --- ------------.- 1 Input taxes claimed on importation of goods supported by W - 10 p 2,312 ,602.00 photocopied lEOs certified by �the BOC -------- - - - - ---- - - - - - - - - - - - 2 Input taxes claimed on importation of goods supported by W-11 1,437,035 .00 photocopied lE Os certified by the BOC and photocopied BOC /Bank Ors 31 Exhibits " C". " D". "E". "F" & ''X-1 to X-16" . li.1 9

DECI SI O N W-17 239 ,967 .05 C.T.A. CASE NOS. 7229 & 7298 87,159 .78 W-18 48 ,630 .09 Page 14 of 19 W-19 30 ,986.01 W -20 3 Input taxes claimed on local purchases of goods supported 14 ,200 .00 by documents other than VAT invoices (e .g. ORs , W-21 1' 187.70 statements of accounts, delivery receipts , etc.) W-22 W-23 12,852 .19 4 Input taxes claimed on local purchases of goods supported W-24 12 , 173 . 18 by invoices without BIR Permit W-25 12,713 .64 W-26 418 ,568 .72 5 Input taxes cla imed on local purchases of goods supported 14 ,308.13 by NON VAT invoices W -27 90 ,269.31 W-28 33,511.05 6 Input taxes claimed on local purchases of goods supported W-29 18,086 .58 by a single invoice erroneously presented twice in the W -3 0 18 ,0 00 .00 summary lists W-31 17,747.32 W - 32 7,104.07 7 Input taxes claimed on loca l purchases of goods W-33 supported by invoices with pre-printed "TIN " only 3,871 .61 W-34 8 Erroneous ly computed input taxes claimed on local l 1.~0 purchases of goods 9 Input taxes claimed on local purchases of goods supported by invoices without pre-printed "TI N-VAT" 10 Input taxes claimed on local purchases of goods supported by VAT invoices issued not in the name of the Company 11 Input taxes claimed on local purchases of goods supported by invoices with pre-printed "TAN-VAT" 12 Input taxes claimed on loca l purchases of services supported by documents other than VAT ORs (e .g. invoices) 13 Erroneously computed input ta xes claimed on loca l purchases of services 14 Input taxes claimed on local purchases of services supported by ORs without BIR Permit 15 Input taxes cla imed on local purchases of services supported by ORs with pre-printed "TIN" onl y 16 Input taxes claimed on local purchases of services supported by ORs stamped "TIN VAT" 17 Input taxes claimed on local purchases of servi ces supported by an OR without pre-printed "TIN VAT" 18 Input taxes claimed on purchases of services supported by single OR erroneously presented twice in the summary lists 19 Input taxes claimed on local purchases of services supported by VAT ORs issued not in the name of the Company 20 Input taxes claimed on loca l purchases of services

DECISION C.T.A. CASE NOS. 7229 & 7298 supported by a VAT OR with pre-printed "Zero-Rated" 21 Input taxes claimed on importation of goods supported by W-36 188 , 155 .29 original lEOs and BOC/Bank ORs wherein the amounts are not tallied 22 Input taxes claimed on importation of goods supported by W-37 21,294 .00 single BOC OR erroneously presented twice in the summary lists 23 Input taxes claimed on importation of goods supported by W-38 1,713 .0 0 an undated BOC OR issued to "Mirant" only 24 Input taxes claimed on importation of goods supported by W-39 741.00 ph otocopied BOC OR only 25 Input taxes claimed on importation of goods supported by W-40 26 1.00 photocopied lED only 26 Input taxes claimed on importa tion of goods not issued in W-41 57 ,000 .00 the name of the Company 27 Input taxes claimed on importation of goods without W-42 599,792. 10 supporting documents 28 Inpu t taxes claimed on W-43 2,118,275 .23 local purchases of goods which are supported by invoices dated outside the period of claim (i.e . dated within the fourth - quarter of 2002 and first gua rter of 2004) . _ _ _ _ _ _ - - - - - - - - �-- --~----- ~-- - -- ------- ----- - ------------ 29 Input ta xes cla imed on W-44 219 ,560 .28 local purchases of goods which are supported by invoices with pre-printed T IN-V instead of TIN-VAT 30 Input taxes claimed on NN-511, NN-512 2 ,549 .00 local purchases of goods supported by a VAT invoices merely stamped as "certified true copy". 31 Input taxes claimed on W-46 673 .20 local purchases of goods supported by undated invoices . 32 Input ta xes claimed on W-47 1,008,148 .96 loca l purchases of services which are supported by ORs wi th pre-printed TIN-V instead of TIN-VAT 33 Input taxes claimed on W-48 376,870 .73 loca l pu rchases of servi ces which are supported by ORs dated outside th e peri od of claim (i.e. within the fourth quarter of 2002 and first quarter of 2004) 34 Input taxes claimed on W-49 356,924.55 local purchases of services which are supported by ORs with different OR number as reported in the summary lists. 35 Input taxes cla imed on W-50 37,6 46 .78 local purchases of services supported by undated ORs. - - - - - - - - -- ----~- ~- --- --- �-- - --- ~ - - - - - - - - - ------- ---�-- ------- -. ~ i r,

DECISION W-51 - --- 19.37 C.T .A. CASE NOS. 7229 & 7298 Page 16 of 19 W-52 203 ,403 .00 ----------- - ----- - W-53 47 ,3 11 .00 36 Input taxes claimed on W-54 11 ,301 .00 loca l purchases of services supported by a VAT OR stamped as "certified true copy" W-55 3,297.00 37 Input taxes claimed on importation of goods supported by photocopied lEOs certified by the BOC and origina l BOC/Bank ORs dated outside period of claim 38 Input taxes claimed on importation of goods supported by photocopied informal lEOs and original BOC/ Bank ORs dated outside period of claim 39 Input taxes claimed on importation of goods supported by photocopied lEOs certified by the BOC and photocop ied BOC/Bank ORs dated outside period of cla im 40 Input taxes claimed on importation of goods supported by original Bank OR dated outside period of cl aim 41 Input taxes claimed on importation of goods W-56 10 , 142 .00 supported by photocopied lEOs and original BOC/Bank ORs 7,398.00 dated outside pe riod of claim W-57 279 ,599.92 42 Input taxes claimed on importation of goods Annex A , 9,587 .00 supported by photocopied in formal lEOs and item no.1 undated BOC/Bank Ors Annex A, item no . 2 43 Input taxes claimed on loca l purchases of goods/ services supported by VAT invoices/official receipts which are dated outside period of claim 44 Input VAT claimed on importati on of goods does not tall y with the input VAT per BOC official receipt 45 W ithout supporting documents Annex A, 2,249,667.48 item no . 3 p 12,642,304.32 Total From the foregoing disallowances, petitioner's valid input VAT for the four quarters of 2003 amounts to only P70,823,049.18, computed as follows: Input VAT Claim Total Less Disall owan ces p 83,465,353 .50 Substantiated Input VAT (12,6 42,30 4 .32) p 70 ,823 ,049 .18 Since petitioner reported an output VAT liability in its Quarterly VAT Return for the third quarter of 2003 in the amount of P776 .36, th e same shall be offset against the substantiated input VAT of P70,823,049.18. Hence, only th e remaining.a.__ 1 .i.22

DECIS I ON C.T.A. CASE NOS. 7229 & 7298 input VAT of P70,822,272.82 can be attributed to the entire zero-rated sales declared by petitioner in the amount of P12,208,805,373.67 and only the input VAT of P70,700,533.01 is attributable to the substantiated zero-rated sales of P12,187,819,071.00, as computed below: Substantiated Input VAT p 70 ,823,04 9.1 8 77 6 .36 Less : Output VAT 70 ,822,272. 82 Excess Input VAT 99 .83 % Multiply by rate of substantiated zero-rated sales 70,700,533.01 Excess Input VAT attributable to substantiated zero-rated sales p With respect to the fourth requisite , We find petitioner to have sufficiently complied with the same. Although petitioner carried over the claimed unutilized input VAT for the taxable year 2003 to the succeeding ta xable quarters until the third quarter of the year 200532, the same was deducted as "Any VAT Refund/TCC" claimed from the total available input ta x of P269,486,336.5533 as of the third quarter of 2005. In other words, the subject claim no longer formed part of the excess input VAT of P185,975,741.8934 as of the third quarter of 2005 which was to be carried over/ applied to the succeeding fourth quarter of 200535 . Finally, regarding the issue of whether or not the claim for refund/ ta x credit certificate was filed within the two-year prescriptive period, the answer is in the affirmative. The reckoning of the two-year prescriptive period for the filing of a claim for input VAT refund starts from the date of filing of the corresponding quarterly VAT return. The present claim pertains to input VAT incurred for the first to fourth quarters of 2003. Reckon ed from April 25, 2003, July 25, 2003, October 27, 200~ 32 Exh ibit ''Q" or "UU- I to UU-2". .1.1 Exh ibit ''Q". Line 24 or ''UU- l��. Line 24. 34 Exhibit "Q". Lin e 3 1 or "UU -2". Li ne 3 1. 35 Exhi bit ''R". Lin e 23C. 1.1. 23

DECIS I O N C.T.A. CASE NOS . 7229 & 7298 and January 26, 2004, petitioner had until April 25, 2005, July 25, 2005, October 27, 2005 and January 26, 2006 within which to file its claim both in the administrative and judicial levels . Hence, the administrative claim filed on December 17, 200436 and the Petitions for Review filed with this Court on April 22, 2005 and July 22, 2005 for the first and second to fourth quarters, respectively, are well within the two-year prescriptive period. Although there is a recent case entitled Commissioner of Internal Revenue vs. Mirant Pagbi/ao Corporation (Formerly SOUTHERN ENERGY QUEZO~ INC/ 7 / wherein the Supreme Court held that the reckoning of the two-year prescriptive period for the filing of a claim for input VAT refund starts from the close of the taxable quarter when the relevant sales were made, this Court finds it proper to apply said ruling to cases filed after the promulgation date of the Mirant Case. To apply said ruling in the present case will in effect be giving the new doctrine retroactive app lication thereby impairing vested rights . WHEREFORE , in view of the foregoing, the instant Petition for Review is hereby PARTIAllY GRANTED . Respondent is hereby ORDERED to REFUND or ISSUE a ta x credit certificate to the petitioner in the amount of P70,700,533.01. SO ORDERED . CAESAR A. CASANOVA Associate Justice 36 Ex hibits ..13"... B-1 ��. .. B- 2.. & .. B-3". 37 G.R. No. 172 129. September 12. 2008.

DECISION C.T.A. CASE NOS. 7229 & 7298 WE CONCUR: ~~ . ~ (With Concurring & Dissenting Opinion) ERNESTO D. ACOSTA CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. L-~. Q~ ERNESTO D. ACOSTA Presiding Justice Chairperson, First Division

ANNEX A TEAM ENERGY CORPORATION (formerly Mirant Pagbilao Corporation and -- Southern Energy Quezo n, Inc.) -vs- COMMISSIONER OF INTERNAL REVEN UE CTA CASE NOS. 7229 & 7298 OTHER INPUT VAT DISALLOWANCES FOR TH E FIRST Tb FOURTH QUARTERS OF 2003 Exhibit Vendor Ref No. Date Amount 1. Input taxes claim ed on local purch ases of goods/services supported by VA T in voiceslo fflcia l receipts dated o utside period of claim a. Per Listing under Exhibit W-3 JJ-586,587 ALSTOM PHILIPPINES , INC. 5174 11/18/02 9,480.00 0350 12/20/02 600.00 JJ -59 1 ANGEL ARTS CO. INC. 0951 12/20/02 581.82 55274 10/03/02 (874 .00) JJ-621 ,622 BGM GARDEN AND LANDSCAPING 55274 10/03/02 0756 12/10/02 2,254.00 JJ-646,647 CATHAY INDUSTRIAL & MILL SUPPLY, INC. 16120 12/26/02 12,500.00 2744 10/09/02 - JJ-646 ,647 CATHAY INDUSTRIAL & MILL SUPPLY, INC. 1692 12/04/02 1,500.00 JJ-715,716 D' SEALING ENTERPRISES 60483 12/03/02 447 .27 53534 12/11/02 JJ-175, 176 FH COMMERCIAL, INC. 10555 07/30/02 10,500 .00 0232 12/05/02 939.50 JJ - 192,193 ILAYA SUPERSTORE 0236 12/05/02 304.00 0238 12/09/02 JJ-215,216 JM BRENTON INDUSTRIES CORP. 011849 10/08/02 1,590.91 7106A 12/27/02 340.91 KK-217,218 JUNEAU INDUSTRIAL CORP. 4105 09/03/02 0424 12/27/02 1,050.00 JJ-229 ,230 JUNNA INDUSTRIAL CORPORATION 054 11/08/02 12,272 .73 W0000017820 12/26/02 JJ - 1980,1981 KARNANI, INC . 196216 12/12/02 590 .91 9203 12/13/02 14,565.46 JJ-1080,1081 LE DREAV MANUFATURING &TRADING P24165 12/10/02 114722 12/09/02 1,818.19 JJ-1080,1082 LE DREAV MANUFATURING & TRADING 7376 11/15/02 39,716.37 11979 11/28/02 JJ-1084,1085 LE DREAV MANUFATURING & TRADING 001345A ~ 12/ 15/02 672.73 PH4932 11/28/02 67,622.28 JJ -2 46,247 LEELENG COMMERCIAL, INC.. 81 02/26/02 1754 12/04/02 5,610.00 JJ-2155,2156 MACHINE-AID TECH. PHILIPPINES, INC. 1423 01/04/02 4,080.00 20908 01/08/04 3,126.41 JJ-1118,1119 MEGATECH RESOURCES CORP. Subtotal 263 .6 4 JJ -284 ,285 METROWIDE COMMODITIES CORPORATION 5,454.55 5,836.37 JJ - 1172,1173 MICHELENE'S MART 50,309.10 JJ -1232,1232 MONARK EQUIPMENT CORPORATION 700.00 17,042.46 JJ-324,325 PHILCOPY CORPORATION 509.09 JJ -3 42,343 PINNACLE PARTS CO. 782 .60 1,031 .25 JJ-1357, 1358 RS COMPONENTS LIMITED (PHILS.) 273,21 8.55 JJ-444,445 THE TRADERS HOTEL MAN ILA KK-476,477 THR IVE ZEAL INDUSTRIES, INC. JJ-456,457 TRACKSTAR ENTERPRISES CORP. JJ-1466-1'1466-2 UNIDYNAMICS PH ILIPPINES CORPORATION JJ-1566, 1567 WEBFORGE PHILIPP INES, INC. NN-630, 631 GHD MANAGEMENT ENGINEERING ENVIRONMENT NN-1485, 1486 RACE ENTERPRISES NN-1632, 1633 UN IDYNAMICS PHILIPPINES CORPORATION PP-2514, 2515 SHOPRITE CENTER GENERAL MERCHANDISE I b. Per Listing under Exhibit W-4 LL-105,106 AQUA TREATMENT TECHNOLOGY, INC. 787 11127/02 684.09 260 10/22/02 5,127.28 LL-9 18,919 MCCOY INTERNATIONAL, INC. 42969 12/07/02 570.00 LL-1613, 1614 UNITED POWER COMMERCIAL CORPORATION Subtotal 6,381 .37 Total 27 9, 599.92 2. Inpu t VAT claimed on importation of goods does not tally with the input VA T per BOG official receipt EE-55 to 57 BUREAU OF CUSTOMS 105401965 08/25/03 166.00 104376273 07/04/03 DD-530 TO 533 BUREAU OF CUSTOMS - Per schedule 36,729.00 Less: Per BOC (27,308 .00) 4 � r , ,.... l. ..i. ::_ IJ

ANNEXA TEAM ENERGY CORPORATION Total 9,587.00 (formerly Mirant Pagbilao Corporation and Southern Energy Quezon, Inc.) 00034864A 12/30/03 10,608.68 -vs- COMMISSIONER OF INTE~NAL REVENUE 161428 07/01/03 758.18 CTA CASE NOS. 7229 & 7298 09/19/03 OTHER INPUT VAT DISALLOWANCES 9051072521 10,232.22 FOR THE FIRST TO FOURTH QUARTERS OF 2003 BVA-0556 10/02/03 1,054 .55 1510 05/15/03 501.58 3. Without supporting documents LN -2 0129 2,507.90 LN-20 131 06/18/03 2,507.90 a. Per Listing under Exhibit W-3 18305 09/04/03 1,151 .65 ACCENT MICRO TECHNOLOGIES INC. 71416 06104103 1,178.69 ACHIEVERS SALES CORPORATION 3192 07/01/03 1,929.66 CALTEX (PHILIPPINES) INC. 80466 04/10/03 848.61 CCMS FOOD PRODUCTS 039030 1,297.64 CHOWKING FOOD CORPORATION 039031 07/02/03 1,297.6 4 CHOWKING FOOD CORPORATION 29823 267.27 CHOWKING FOOD CORPORATION 29929 06/14/03 54.55 CHRIS JANN MARKETING INC 71437 11/22/03 2,113 .64 CHRIS JANN MARKETING INC 71439 12/22/03 1,409.09 CHRIS JANN MARKETING INC 26575 09/03/03 700.00 CHRIS JANN MARKETING, INC. 37755 09/08/03 460.91 DATA COMPUTER FORMS, INC . 209691 06/19/03 571.12 DATA COMPUTER FORMS, INC. 10/30/03 112.50 DEALO KOFFEE KLATCH 30204 12/02/03 1,345.46 DEALO KOFFEE KLATCH 46140 06117103 895 .64 DOMINGO'S GEN. MERCHANDISE 46330 05/05/03 32.00 DOMINGO'S GEN. MERCHANDISE 70844 08/15/03 2,400.00 EAGLE STAR INDUSTRIAL SALES CORP. 70996 09/15/03 4,037.40 EER AUTO SUPPLY 12181 09/22/03 685.45 E-PLUS STATIONERY, INC. 55607 05/14/03 366 .00 FAMOUS ELECTRICAL AND CONSTRUCTION SUPPLY 5750 05/16/03 FLYER MARKETING CORPORATION 05/15/03 23,634 .91 GBIC ENTERPRISES INC 217 03/03/03 1,177.91 GBIC ENTERPRISES INC 207 07/30/03 2,015.43 INFINITY INDUSTRIAL SALES CORP. 153051 05/13/03 291 .24 INFINITY INDUSTRIAL SALES CORP. 368 672.73 JJED PHILS. INC. 374 672.73 JUNNA INDUSTRIAL CORPORATION 219 480.00 KPI ELEVATORS INC LN -17453 3,792 .73 LENNART PAOLO ENTERPRISES MN -17451 3,792. 73 LENNART PAOLO ENTERPRISES P0-21007 LUCENA MARKTOWN CONSTRUCTION SUPPLY 207212 25 ,022 .95 MICHELENES MART 2710 1,118.50 MICHELENES MART 13884 76 .36 MICHELENE'S MART 14974 86 .18 MONTE VISTA HOTSPRINGS & CONFERENCE RESORT 13878 173.09 MONTE VISTA HOTSPRINGS &CONFERENCE RESORT 14435 177.00 PATTERN INDUSTRIES 14434 211.36 PH ILCOPY CORPORATION 13871 254 .55 POLARIS IN DUSTRIAL TRADING CORP. 14972 286.55 SHOPRITE CTR & GEN MDSE 14961 336 .36 SHOPR ITE CTR & GEN MDSE 13880 400.73 SHOPRITE CTR & GEN MDSE 13881 408 .27 SHOPRITE CTR & GEN MDSE 13877 418.18 SHOPRITE CTR & GEN MDSE 13870 528 . 14 SHOPRITE CTR & GEN MDSE 14968 594.18 SHOPRITE CTR & GEN MDSE 14853 597.36 SHOPRITE CTR & GEN MDSE 932 .73 SHOP RITE CTR & GEN MDSE SHOP RITE CTR & GEN MDSE SHOPRITE CTR & GEN MDSE SHOP RITE CTR & GEN MDSE SHOPR ITE CTR & GEN MDSE SHOPRITE CTR & GEN MDSE l l.C.7

AN NEXA TEAM ENERGY CORPORATION 14438 05/26/03 941.42 (formerl ~ Mirant Pagbilao Corporation and 13889 05/26/03 1,012.36 Southern Energy Quezon, Inc.) 14960 1,110.18 -vs- COMMISSIONER OF INTERNAL REVENUE 14856 06/27/03 1,204 . 14 CTA CASE NOS. 7229 & 7298 14959 06/23/03 1,246.09 OTHER INPUT VAT DISALLOWANCES 14973 06/07/03 1,377.27 FOR THE FIRST TO FOURTH QUARTERS OF 2003 13879 06/06/03 1,456 .82 13882 05/28/03 1,629.55 SHOPRITE CTR & GEN MDSE . 13883 03/14/03 1,709.55 SHOPRITE CTR & GEN MDSE 14971 06/16/03 2,004 .68 SHOPRITE CTR & GEN MDSE 14437 06/05/03 2,035 .27 SHOPRITE CTR & GEN MDSE 13876 11/10/03 2,667.60 SHOPRITE CTR & GEN MDSE 14857 2,718.82 SHOPRITE CTR & GEN MDSE 1327 Subtotal SHOPRITE CTR & GEN MDSE 1293 732.00 SHOPRITE CTR & GEN MDSE 1048 1,047.50 SHOP RITE CTR & GEN MDSE PAG-0368 SHOP RITE CTR & GEN MDSE 19666 539 .55 SHOPRITE CTR & GEN MDSE 15355 4,332 . 50 SHOPRITE CTR & GEN MDSE 144067 SHOPRITE CTR & GEN MDSE 143728 159.09 ST. PANCRACIUS CONCRETE PRODS. & CONST. 142789 3,182.00 ST. PANCRACIUS CONCRETE PRODS. & CONST. 142581 ST. PANCRATIUS CONCRETE PRODUCTS 142075 973.16 ST. PANCRATIUS CONCRETE PRODUCTS 137487 3,380.10 SUNLIFE BOOKSTORE 998 1,124.50 THE TURF COMPANY INC 414 UP-TOWN INDUSTRIAL SALES, INC. 14259 409 .69 UP-TOWN INDUSTRIAL SALES, INC. 280.96 UP-TOWN INDUSTRIAL SALES, INC. 49272 UP-TOWN INDUSTRIAL SALES, INC. 16322A 38 .00 UP-TOWN IN DUSTRIAL SALES, INC. 2,394 .00 UP-TOWN INDUSTRIAL SALES, INC. 254 VALLEY TECHNOLOGIES, INC. 254 548.18 WILDCAT MACHINERY, INCORPORATED 1583 1,980.92 ZAB ENTERPRISES 55879 161 ,714.73 55879 b. Per Listing under Exhibit W-4 57551 06/04/03 12,017.09 JB MUSIC AND SPORTS 6159 Subtotal 19,022.73 VETTE INDUSTRIAL SALES COMPANY 6159 31 ,039.82 51696645 c. Per Listing under Exhibit W-5 1985 06/25/03 8,000 .00 ALAVA BUSINESS CONSULTANCY 3126 06/25/03 8,000.00 ALAVA BUSINESS CONSULTANCY 836340 08/29/03 20,596.91 ASIA CORROSION SERVICES , INC. 854476 AS IA OVERSEAS TRANSPORT CO., INC. 32629 07/26/03 90.91 ASIA OVERSEAS TRANSPORT CO., INC. 257313 1,31 1.61 ASIA OVERSEAS TRANSPORT CO., INC. 1034 08/29/03 BERMONT EXPRESS INTERNATIONAL INC. 5628 638 .35 BERMONT EXPRESS INTERNATIONAL INC. 10035 19.31 BEST HOTEL MANAGEMENT, INC. 11428 75 .00 BETHRO TRADING 619/0002 B.P. MATA & CO., INC. 0630 47,190.00 CARGOHAUS , INC. 4531 134.55 CARGOHAUS, INC. 4353 DELSAN OFFICE SYSTEMS CORPORATION 3,261 .80 DUSIT HOTEL NIKKO 20.66 FOLLOSCO MORALLOS & HERCE 82.91 FUJI XEROX PHILIPPINES, INC. FUJI XEROX PHILIPPINES, INC. 695.46 FUJI XEROX PHILIPPINES, INC. 849.77 HORSEPOWER BUILDER & INDUSTRIAL SUPPLY 8,043 .75 HORSEPOWER BUILDER & INDUSTRIAL SUPPLY 511 .64 KPI ELEVATORS, INC. 912.27 KPI ELEVATORS. INC. 1,038.91 4,545.46 Page 3 of 5 22,727.28 11,596.82 11,596.82 3 l�. .. rI' , .1.-

ANNEXA TEAM ENERGY CORPORATION 4355 06/20/03 11,596.82 (formerly Mirant Pagbilao Corpora!ion and 56153 08/05/03 339.94 Southern Energy Quezon , Inc.) 55603 339.94 -vs- COMMISSIONER OF INTERNAL REVENUE 55647 06/18/03 439 .95 CTA CASE NOS. 7229 & 7298 0109046 12/17/02 418 . 19 OTHER INPUTVAT DISALLOWANCES 2533 05/23/03 FOR THE FIRST TO FOURTH QUARTERS OF 2003 3177 06/16/03 3,407.09 266030 06/16/03 464.13 KPI ELEVATORS. INC. 153113/1466 06/16/03 19.27 NEW WORLD INTERNATIONAL DEVELOPMENT PHILS. INC 1230 06/16/03 854 .94 NEW WORLD INTERNATIONAL DEVELOPMENT PHILS. INC 236889 06/16/03 19.34 NEW WORLD INTERNATIONAL DEVELOPMENT PHILS. INC 0044 06/16/03 28 .08 PAC-ATLANTIC LINES (PHILS), INC. 889223 06/16/03 PENN REFRIGERATION & AIRCONDITION 179544 03/12/03 4,418 .76 PCIC CONTAINER FREIGHT STATION, INC. 179544 03/12/03 11,910.00 PEOPLE'S AIR CARGO & WAREHOUSING CO., INC 179544 04/11/03 PEOPLE'S AIR CARGO & WAREHOUSING CO , INC 179544 06/27/03 175.67 PEOPLE'S AIR CARGO & WAREHOUSING CO., INC 179544 06/30/03 1,234. 15 PEOPLE'S AIRPORT SERVICES CORP. 179544 1,634 .64 PHILIPPINE LONG DISTANCE TELEPHONE CO 179544 Subtotal 2,872.30 PHILIPPINE LONG DISTANCE TELEPHONE CO 1244 7,174.12 PHILIPPINE LONG DISTANCE TELEPHONE CO 1244 11,446.97 PHILIPPINE LONG DISTANCE TELEPHONE CO 1883 11,705.15 PHILIPPINE LONG DISTANCE TELEPHONE CO 12194 PHILIPPINE LONG DISTANCE TELEPHONE CO 12559 531 .90 PHILIPPINE LONG DISTANCE TELEPHONE CO 542.86 PHILIPPINE LONG DISTANCE TELEPHONE CO 2,227.49 PHILIPPINE LONG DISTANCE TELEPHONE CO 521.20 PHIL-NIPPON CARGO EXPRESS CORP. 398 .82 PHIL-NIPPON ~ARGO EXPRESS CORP. 226,861.91 SAGAWA EXPRESS PHILIPPINES, INC. SAGAWA EXPRESS PHILIPPINES, INC. 23,026 .00 SAGAWA EXPRESS PHILIPPINES, INC. 32,363 .00 46 ,075 .00 d. Per Listing under Exhibit W-9 P0-19136/18728BOC 111 ,007.00 BUREAU OF CUSTOMS P0-20064 BOC 172,193.00 BUREAU OF CUSTOMS SN#46332133 BUREAU OF CUSTOMS 152.00 BUREAU OF CUSTOMS 104376081 06/12/03 1,768.00 BUREAU OF CUSTOMS 103919487 08/01/03 BUREAU OF CUSTOMS 07/09/03 117.00 BUREAU OF CUSTOMS 2228728 10/14/03 2,0 14 .00 BUREAU OF CUSTOMS 103945405 11/11/03 6,595 .00 BUREAU OF CUSTOMS 108596363 10/20/03 7,003 .00 BUREAU OF CUSTOMS 01/21/03 8,063 .00 BUREAU OF CUSTOMS 0009687 11/05/03 31,011 .00 BUREAU OF CUSTOMS 2192758 12/19/03 441,367.00 BUREAU OF CUSTOMS 0011735 Subtotal 167 .00 17002 32,448 .00 e. Per Listing under Exhibit W-12 97954543 06/19/03 6,466.00 BUREAU OF CUSTOMS LBP 12004257 07/26/03 24.00 BUREAU OF CUSTOMS 06/29/03 BUREAU OF CUSTOMS 102713082 06/18/03 449.41 BUREAU OF CUSTOMS 97996893 07/09/03 . 1,850.00 BUREAU OF CUSTOMS 2192758 BUREAU OF CUSTOMS 1052111 36 10/17/03 7,167.00 BUREAU OF CUSTOMS 12022949 11/04/03 17,126.00 PHIL-NIPPON CARGO EXPRESS CORP. SAGAWA EXPRESS PHILIPPIN ES, INC. 1306 Subtotal 43 .00 BUREAU OF CUSTOMS 23,759 .00 BUREAU OF CUSTOMS 104377551 35,488 .00 BUREAU OF CUSTOMS 0011196 288,194 .00 413,201 .41 f. Per Listing under Exhibit W-13 a.. li29

ANNEXA TEAM ENERGY CORPORATION 1230 07/23/03 997.00 (formerly Mirant Pagbilao Corporation and 74283167 07/24/03 1,053.00 South ern Energy Quezon, In c.) 77515103 10/31/03 3,298.00 -vs- COMMISSIONER OF INTERNAL REVENUE 103353844 10/28/03 2,827.00 CTA CASE NOS. 7229 & 7298 108306301 10/01/03 4,183.00 OTHER INPUT VAT DISALLOWANCES 107310865 11/17/03 3,002 .00 FOR THE FIRST TO FOURTH QUARTERS OF 2003 107731626 2,681 .00 Subtotal 18,041.00 BUREAU OF CUSTOMS BUREAU OF CUSTOMS BUREAU OF CUSTOMS BUREAU OF CUSTOMS BUREAU OF CUSTOMS BUREAU OF CUSTOMS BUREAU OF CUSTOMS g. Per Listing under Exhibit W-15 103951136 11/05/03 178.00 BUREAU OF CUSTOMS 0012753 12/8/03 7,468 .00 BUREAU OF CUSTOMS Subtotal 7,646.00 h. Per Listing under Exhibit W-45 82 373 7/14/03 18 ,093 .50 FAMOUS ELECTRICAL AND CONST SUPP Subtotal 18 ,093 .50 i. Per Listing under Exhibit W-35 1,599,435.62 Less: Input VAT per Additional Documents Submitted first set of documents (363,254 .83) Dated outside period of claim BBB CALTEX (PHILIPPINES), INC. 9050859896 12/26/02 7,132 .80 (318 ,747 .8 5) second set of documents Purchase of goods supported by sales invoice wherein amounts does not tally LLL-5 ACHIEVERS SALES CORPORATION Per schedule 12,281 .17 (5 ,184.80) Per sales invoice 931,662.11 2,249,667.48 Subtotal Total . Q r . 1l.J