PETRON CORPORATION v. COMMISSIONER OF INTERNAL REVENUE

CTA Form No. 8 lllllllllllllllllllllllllll llllllll lllllllllllllll lllllllllllllll 21-0003 87-0065 REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY FIRST DIVISION CTA CASE N0.10634 PETRON CORPORATION, NOTICE OF DECISION Petitioner, -versus- COMMISSIONER OF INTERNAL REVENUE, Respondent. To: OFFICE OF THE SOLICITOR GENERAL 134 Amorsolo Street, Legazpi Village Makati City ATTY. AYESHA HANIA B. GUILING-MATANOG ATTY. CLARISSA J. VlRTUDES-BABARAN Bureau of Internal Revenue Room 703, Litigation Division, BIR National Office Building Sen.Miriam P. Defensor-Santiago Avenue Diliman, Quezon City DU-BALADAD AND ASSOCIATES 20th Floor, Chatham House Building Rufino comer Valero Streets Salcedo Village, Makati City GREETINGS: You are hereby notified by these presents that on October 28 2024, a Decision was rendered in the above-entitled case, copy of which is attached hereto. Quezon City, Philippines, October 29, 2024. AttyE. xMecuatirv~~iCao~uFr. CthaIIn-Te

, REPUBLIC OF THE PHILIPPINES Court of Tax Appeals QUEZON CITY FIRST DIVISION PETRON CORPORATION, CTA Case No. 10634 Petitioner, Members: -versus- DEL ROSARIO, P.J. , Chairperson, BACORRO-VILLENA, and CUI-DAVID, JJ. COMMISSIONER OF Promulgated: INTERNAL REVENUE, Respondent. DEL ROSARIO, P.J.: Before this Court is a Petition for Review1 filed on August 23, 2021 by petitioner Petron Corporation against respondent Commissioner of Internal Revenue, praying that judgment be rendered ordering respondent to refund in favor of petitioner the amount of t-9,553,568.40 representing excise taxes paid during the period August 1, 2019 to December 31 , 2019 for petitioner's imported lubricating oils and its additives which formed part of the finished goods that were subsequently sold and delivered to tax-exempt entities. THE PARTIES Petitioner is a domestic corporation duly organized and existing under Philippine law, with principal office address at the SMC Head Office Complex, 40 San Miguel Avenue, Mandaluyong City. It is registered with the Securities and Exchange Commission (SEC) under Company Registration No. 31171 .2 Petitioner is also registered with the Bureau of Internal Revenue (BIR) as shown in its BIR Certificate of 1 CTA Docket, pp. 6-D to 6-AA. 2 Exhibits "P-1" and "P-2", CTA Docket, pp. 435-453t1'?

, DECISION Petron Corporation vs. Commissioner of lntemal Revenue CTA Case No. 10634 Registration No. OCN 8RC0000559947 with Tax Identification Number (TIN) No. 000-168-801-00000.3 Respondent, on the other hand, is the duly appointed Commissioner of Internal Revenue (CIR) empowered to perform the duties of his office, including among others, the duty to act on and approve claims for refund as provided by law. He may be served with summons, notices and other court processes at his office at the BIR National Office Building, Sen. Miriam P. Defensor-Santiago Avenue, Diliman, Quezon City 4 THE FACTS On August 18, 2021, 5 petitioner filed with the Large Taxpayers Excise Audit Division II of the BIR, an application for tax refund in the total amount of P9,553,568.40, along with supporting documents, allegedly representing excise taxes paid on its importation of lubricating oils and its additives during the period August 1, 2019 to December 31, 2019, which were allegedly subsequently sold and delivered to various tax-exempt entities. 6 Due to respondent's inaction over its administrative claim for refund, petitioner filed the present Petition for Review via electronic mail on August 23, 2021. 7 On October 26, 2021, petitioner filed a Submission with Manifestation submitting the hard copies of its Petition for Review pursuant to CTA En Bane Resolution No. 4-2021. 8 On February 2, 2022, within the extended period, 9 respondent filed his Answer, 10 raising the following Special and Administrative Defenses: (i) petitioner is not entitled to refund of excise taxes allegedly paid for the period August 1, 2019 to December 31, 2019, on its sales and deliveries of lubricating oils to tax-exempt entities in the amount of P9,553,568.40; (ii) Section 135 of the National Internal Revenue Code 3 Exhibit "P-3", CTA Docket, pp. 454-455. 4 Par. 1, Summary of Admitted Facts, Joint Stipulation of Facts and Issues (JSFI), CTA Docket, p. 229. 5 Exhibit "P-6-2", CTA Docket, p. 472. 6 Exhibit "P-6", CTA Docket, pp. 472-477. 7 CTA Docket, pp. 6-A to 6-AA. 8 CTA Docket, pp. 7-9. 9 Resolution dated March 16, 2022, CTA Docket, p. 147. �1 CTA Docket, pp. 126-134"1

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 (NIRC) of 1997, as amended, does not grant exemption to sellers rather it provides for an enumeration wherein petroleum products when sold to international carriers and entities enumerated therein are exempt from excise tax; and, (iii) claims for refund of excise taxes paid is authorized only under Section 130(0) of the NIRC of 1997, as amended. Respondent's Pre-Trial Brief1 1 was filed on March 28, 2022 while petitioner's Pre-Trial Brief12 was filed on May 4, 2022. The Pre-Trial Conference was held on May 12, 2022.13 On June 10, 2022, the parties filed their Joint Stipulation of Facts and lssues14 which was approved by the Court in the Resolution dated June 22, 2022 thereby terminating the Pre-Trial. 15 Upon motion16 of petitioner, the Court commissioned Ms. Madonna Mia S. Dayego, as Independent Certified Public Accountant (ICPA), on July 5, 2022Y On July 13, 2022, the Court issued the Pre-Trial Order. 18 During trial, petitioner presented testimonial and documentary evidence. It presented the following witnesses: Atty. Ma. Clarissa C. Arguelles, 19 petitioner's Tax Manager; Mr. Edicel R. Bautista, 20 Plant Manager of petitioner's New Lube Oil Blending Plant (NLOBP); Mr. Jake Martin A Magana,21 petitioner's Commercial Services Supervisor; Mr. Bentley Raymond L. Elgincolin, 22 petitioner's Area Sales Manager- Lubes and Greases International and Key Accounts; 11 CTA Docket, pp. 154-157 12 CTA Docket, pp. 161-179. 13 Minutes of Hearing and Order dated May 12, 2022, CTA Docket, pp. 180-180-B and 181-181-B. 14 CTA Docket, pp. 229-236. 15 CTA Docket, p. 242. 16 CTA Docket, pp. 217-221. 17 CTA Docket, pp. 268-269. 18 CTA Docket, pp. 277-296. 19 Exhibit "P-30", Judicial Affidavit of Ma. Clarissa C. Arguelles, CTA Docket, PP� 46-60; and Minutes of Hearing dated July 5, 2022, CTA Docket, p. 268. 20 Exhibit "P-32", Judicial Affidavit of Edicel R. Bautista, CTA Docket, pp. 75-84; and Minutes of Hearing dated July 5, 2022, CTA Docket, p. 268. 21 Exhibit "P-36", Judicial Affidavit of Jake Martin A. Magana, CTA Docket, pp. 259-266; and Minutes of Hearing dated July 5, 2022, CTA Docket, p. 268. 22 Exhibit "P-33", Judicial Affidavit of Bentley Raymond L. Elgincolin, CTA Docket, pp. 88- 96; and Order dated September 6, 2022, CTA Docket, pp. 410-412~

DECISION Petron Corporation vs. Commissioner of lntemal Revenue CTA Case No. 10634 Mr. Ronald Q. Chiong, 23 petitioner's Research and Development Manager and, Ms. Madonna Mia S. Dayego,24 the Court- commissioned !CPA. On September 27, 2022, petitioner filed its Formal Offer of Evidence. 25 In the Resolution dated November 18, 2022,26 petitioner's exhibits were admitted in evidence, except Exhibit "P-1 0", for not being found in the records of the case and for petitioner's failure to identify the same; and Exhibit "P-26" for petitioner's failure to identify the same. In the same Resolution, petitioner was deemed to have rested its case; and, considering respondent's manifestation in his Comment (Re: Formal Offer of Evidence) that he will not be presenting evidence,27 the parties were directed to file their respective memoranda within thirty (30) days from receipt thereof. On December 5, 2022, respondent filed his Memorandum 28 On December 9, 2022, petitioner filed a Motion for Reconsideration (Re: Resolution Dated November 18, 2022) with Motion to Defer Filing of Memorandum29 praying for the admission of its Exhibits "P-10" and "P-26". In the Resolution dated February 17, 2023, 30 the Court admitted the previously denied Exhibits "P-1 0" and "P-26" and ordered petitioner to file its memorandum within thirty (30) days from receipt thereof. On March 29, 2023, petitioner filed its Memorandum31 and an Omnibus Motion to Reopen Proceedings and Admit Supplemental Offer of Evidence (with Attached Supplemental Formal Offer of Evidence dated March 29, 2023). 32 23 Exhibit "P-34", Judicial Affidavit of Ronald Q. Chiong, CTA Docket, pp. 100-109; and Order dated September 6, 2022, CTA Docket, pp. 410-412. 2� Exhibit "P-39", Judicial Affidavit of Madonna Mia S. Dayego, CTA Docket, pp. 341-372; and Order dated September 6, 2022, CTA Docket, pp. 410-412. 25 CTA Docket, pp. 420-434. 26 CTA Docket, pp. 495-496. 27 CTA Docket, pp. 487-489. 28 CTA Docket, pp. 497-504. 29 CTA Docket, pp. 507-513. �3 CTA Docket, pp. 525-527. 31 CTA Docket, pp. 528-559. 32 CTA Docket, pp. 560-567.0*1

DECISION Petron Corporation vs. Commissioner of lntemal Revenue CTA Case No. 10634 In the Resolution dated May 26, 2023, 33 the Court granted petitioner's Omnibus Motion and admitted and resolved its Supplemental Formal Offer of Evidence.34 Petitioner's offered exhibits were mostly admitted but Exhibits "P-1 02-3-9" to "P-1 02-3-18", "P-1 03- 2-20" to "P-103-2-22", "P-103-2-24" to "P-103-2-32", and "P-103-2-34" to "P-103-2-36" were denied for not being found in the records of the case. The Court also submitted the case for decision. On June 14, 2023, petitioner filed a Motion for Reconsideration (with Motion for Leave to Recall the Independent Certified Public Accountant).35 This was granted by the Court in the Resolution dated June 29, 2023, 36 which also recalled and set aside the Resolution dated May 26, 2023 with respect to the submission of this case for decision pending the resolution of petitioner's motion. In the Resolution dated August 7, 2023, 37 the Court: (i) partially granted petitioner's Motion for Reconsideration; (ii) admitted Exhibits "P-1 02-3-9" to "P-1 02-3-18"; (iii) denied Exhibits "P-1 03-2-20" to "P- 103-2-22", "P-1 03-2-24" to "P-1 03-2-32", and "P-1 03-2-34" to "P-1 03- 2-36" for not being found in the records of the case; (iv) denied petitioner's Motion for Leave to Recall the ICPA; and, (v) submitted the case anew for decision. On August 29, 2023, petitioner filed a Motion to Reopen Proceedings. 38 In the Resolution dated October 26, 2023,39 the Court: (i) partially granted petitioner's Motion to Reopen Proceedings; (ii) denied petitioner's prayer to reopen the case; (iii) admitted Exhibits "P-1 03-2- 20" to "P-1 03-2-22", "P-1 03-2-24" to "P-1 03-2-32", and "P-1 03-2-34" to "P-1 03-2-36"; and, (v) submitted the case anew for decision. ISSUE The parties stipulated the following issue for the Court's resolution: 33 CTA Docket, pp. 583-585. 34 CTA Docket, pp. 568-576. 35 CTA Docket, pp. 587-592. 36 CTA Docket, p. 595. 37 CTA Docket, pp. 601-602. 38 CTA Docket, pp. 604-614. 39 CTA Docket, pp. 629-631.C!Jil

' DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 Whether petitioner is entitled to the refund in the amount of P9,553,568.40, representing excise taxes paid during the period August 1, 2019 to December 31, 2019 for its imported lubricating oils and its additives which were subsequently sold and delivered to tax-exempt entities.40 PARTIES' ARGUMENTS Petitioner argues that: (i) both its administrative and judicial claims for refund were timely filed; (ii) the imported lubricating oils and its additives sold and delivered to tax-exempt entities are exempt from excise tax and any excise tax paid thereon is erroneous; (iii) subject imported lubricating oils and its additives were imported during the period August 1, 2019 to December 31, 2019 and petitioner paid the corresponding excise taxes therein; (iv) the volume and amount of imported lubricating oils transferred from the Bureau of Customs (BOC) to NLOBP and/or Pandacan Depot were accurate and properly supported; (v) the sales and deliveries of imported lubricating oils to its tax-exempt customers were accurate and adequately supported; and, (vi) it is entitled to a refund in the amount of P9,553,568.40, representing erroneously paid excise taxes on petroleum products that are exempt under Section 135 of the NIRC of 1997, as amended.41 On the other hand, respondent counter-argues that: ((i) petitioner is not entitled to refund of excise taxes allegedly paid for the period August 1, 2019 to December 31, 2019, on its sales and deliveries of lubricating oils to tax-exempt entities in the amount of P9,553,568.40; (ii) Section 135 of the NIRC of 1997, as amended, does not grant exemption to sellers rather it provides for an enumeration wherein petroleum products when sold to international carriers and entities enumerated therein are exempt from excise tax; and, (iii) claims for refund of excise taxes paid is authorized only by Section 130(D) of the NIRC of 1997, as amended.42 THE COURT'S RULING Refund or recovery of tax erroneously or illegally collected is sanctioned by Sections 204(C) and 229 of the NIRC of 1997, as amended, to wit: 40 II. Statement of the Issue, JSFI, CTA Docket, p. 230. 41 Memorandum, CTA Docket, pp. 543-556. 42 Memorandum, CTA Docket, pp. 498-5030t1

� DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 "SEC. 204. Authority of the Commissioner to Compromise, Abate and Refund or Credit Taxes. - The Commissioner may- XXX XXX XXX (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. XXX XXX XXX 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, 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 tax, where on the face of the return upon which payment was made, such payment appears clearly to have been erroneously paid." Section 204 of the NIRC of 1997, as amended, applies to administrative claims for refund, while Section 229 of the same Code pertains to judicial claims for refund. 43 The afore-quoted provisions are clear. Within two (2) years from the date of payment of tax, the claimant must first file an administrative claim with respondent before filing its judicial claim with this Court. Both claims must be filed within a two (2)-year reglementary period. C1J 43 Commissioner of Internal Revenue vs. Univation Motor Philippines, Inc. (formerly Nissan Motor Philippines, Inc.), G.R. No. 231581, April 10, 201

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 Timeliness of the filing of the claim is mandatory and jurisdictional, and thus the Court cannot take cognizance of a judicial claim for refund filed either prematurely or out of time. It is worthy to stress that as for the judicial claim, tax law even explicitly provides that it be filed within two (2) years from payment of the tax "regardless of any supervening cause that may arise after payment. "44 Furthermore, the above-quoted provisions allow the recovery of taxes erroneously or illegally collected. An "erroneous or illegal tax" is defined as one levied without statutory authority, or upon property not subject to taxation, or by some officer having no authority to levy the tax, or one which is some other similar aspect is illegal.45 Relevant to petitioner's present refund claim are Sections 131 (A) and 135 of the NIRC of 1997, as amended. Section 131 (A) of the NIRC of 1997, as amended, provides that the excise tax due for the imported fuel shall be paid before the release of the importations from the customs house, viz: "SEC. 131. Payment of Excise Taxes on Imported Articles.- (A) Persons Liable. - Excise taxes on imported articles shall be paid by the owner or importer to the Custom Officers, conformably with the regulations of the Department of Finance and before the release of such articles from the customs house, or by the person who is found in possession of articles which are exempt from excise taxes other than those legally entitled to exemption. XXX XXX xxx" On the other hand, Section 135 of the NIRC of 1997, as amended, provides: "SEC. 135. Petroleum Products Sold to International Carriers and Exempt Entities or Agencies. - Petroleum products sold to the following are exempt from excise tax: (a) International carriers of Philippine or foreign registry on their use or consumption outside the Philippines: Provided, That the petroleum products sold to these international_ carriers shall ~e stored in a bonded storage tank and may be disposed of only m 44 Commissioneroflnternal Revenue vs. San Miguel Corporation, G.R. Nos. 180740 and 180910, November 11, 2019. . 45 Commissioner of Internal Revenue vs. Pilipinas Shell Petroleum CorporatiOn, G. R. No. 188497, April 25, 2012.\1}

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 accordance with the rules and regulations to be prescribed by the Secretary of Finance, upon recommendation of the Commissioner; (b) Exempt entities or agencies covered by tax treaties, conventions and other international agreements for their use of consumption: Provided, however, That the country of said foreign international carrier or exempt entities or agencies exempts from similar taxes petroleum products sold to Philippine carriers, entities or agencies; and (c) Entities which are by law exempt from direct and indirect taxes." (Emphasis supplied) In Chevron Philippines Inc. vs. Commissioner of Internal Revenue, 46 the Supreme Court elucidated that in order for the exemption under Section 135 of the NIRC of 1997, as amended, to become operative, it must be established that the entities to which petroleum products were sold are exempt from direct and indirect taxes, viz.: "Pursuant to Section 135(c), supra, petroleum products sold to entities that are by law exempt from direct and indirect taxes are exempt from excise tax. The phrase which are by law exempt from direct and indirect taxes describes the entities to whom the petroleum products must be sold in order to render the exemption operative. Section 135(c) should thus be construed as an exemption in favor of the petroleum products on which the excise tax was levied in the first place. The exemption cannot be granted to the buyers -that is, the entities that are by law exempt from direct and indirect taxes - because they are not under any legal duty to pay the excise tax. XXX XXX XXX Inasmuch as its liability for the payment of the excise taxes accrued immediately upon importation and prior to the removal of the petroleum products from the customshouse, Chevron was bound to pay, and actually paid such taxes. But the status of the petroleum products as exempt from the excise taxes would be confirmed only upon their sale to CDC in 2007 (or, for that matter, to any of the other entities or agencies listed in Section 135 of the NIRC). Before then, Chevron did not have any legal basis to claim the tax refund or the tax credit as to the petroleum products. Consequently, the payment of the excise taxes by Chevron upon its importation of petroleum products was deemed illegal and erroneous upon the sale ofthe petroleum products to CDC." (Emphasis supplied) 46 G.R. No. 210836 (Resolution), September 1, 201~

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 This principle was echoed in Pilipinas Shell Petroleum Corporation vs. Commissioner of Internal Revenue, 47 where the Supreme Court held: "As may be gleaned from Section 131 as above-cited, although certain articles may be free from excise taxes upon importation, they may subsequently become subject to the same depending on the subsequent buyer. This is essentially the same principle of subsequent confirmation espoused by the 2015 Chevron, and is also a necessary consequence of excise tax being a property tax, and not a tax on persons. Considering that the status of the petroleum products as tax-exempt solidifies upon the sale to any of the entities enumerated under Section 135, any excise taxes which were previously paid thereon would then be considered as 'erroneously or illegally collected,' and therefore, subject to refund. In turn, the petroleum products become exempt from excise taxes once it is determined that they are to be sold to, among others, international [carriers]. This reflects Section 135's wording, i.e., that the petroleum products are considered as tax-exempt once they are 'sold to [inter alia] x x x [i]nternational carriers."' From the above, the refund can only be ascertained, or the excise taxes will only be deemed erroneously or illegally collected once the petroleum products are sold to tax-exempt entities mentioned under Section 135 of the NIRC of 1997, as amended. Pursuant to Sections 131 and 135, in relation to Sections 204(C) and 229, of the NIRC of 1997, as amended, petitioner is required to prove the following in order for its claim for refund to prosper: 1. Petitioner filed the refund claim within the two (2)-year prescriptive period; 2. The entity to which the petitioner sold the petroleum products is an entity exempt by law from indirect and direct taxes; and, 3. The petitioner is the statutory taxpayer which actually paid the excise taxes sought to be refunded on the same imported petroleum products sold to the exempt entity. The Court shall determine petitioner's compliance with the abovementioned requisites in seriatim. (JI 47 G.R. No. 211303, June 15, 2021.

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 First Requisite: Petitioner's administrative and judicial claims for refund were filed within the two (2)-year prescriptive period The Court shall now determine the timeliness of the filing of the present case. Petitioner presented in evidence its Schedule of lmportations48 of lubricating oils during the period August 1, 2019 to December 31, 2019. Based on said Schedule of Importations, petitioner made importations of base oils and additives in the total aggregate volume of 28,200,921.98 liters and paid excise taxes thereon in the total amount of P253,808,297.93. To prove the fact of importation of base oils and additives and the corresponding payment of duties and taxes for the period August 1, 2019 to December 31, 2019, petitioner must provide at the very least both the: (1) Single Administrative Document (SAD), which must contain the necessary details required by law; and, (2) Statement of Settlement of Duties and Taxes (SSDT) as proof that the customs duties and taxes were duly paid during the period August 1, 2019 to December 31,2019. An examination of the SADs49 and SSDTs50 presented by petitioner discloses the following payments of excise taxes on its importations of base oils and additives during the period August 1, 2019 to December 31,2019: SAD SSDT Volume in Amount of Exhibit No. Reference Date Vessel Name Exh. No. Date of Liters Excise Tax Paid No. Payment P-103-1-8 P-1 03-1-1 C-235799 08/21/2019 tanH P-103-2-8 08/22/2019 95,012.00 p 855,108.00 C-110860 08/21/2019 Princess Garnet P-103-2-1 08/23/2019; 12/13/2019 1,066,223.00 9,596,007.00 P-1 03-2-93 08/27/2019 P-1 03-1-94 C-237289 08/22/2019 Kota Jati C107E P-103-2-72 16,116.51 145,049.00 P-103-1-73 C-242571 08/28/2019 abea V. 1905E P-103-2-92 08/29/2019 16,204.26 145,838.36 P-1 03-1-93 C-241599 08/27/2019 P-103-2-3 08/29/2019 18,793.2< 169,139.00 P-103-1-3 C-113395 08/28/2019 MS Baste Express 1 '175,039.00 10,575,351.00 KS Iris P-103-2-5 08/29/2019; 12/13/2019 P-1 03-1-5 C-113400 08/28/2019 KS Iris P-1 03-2-40 08/29/2019; 1,121,181.00 10,090,629.0C 12/13/2019 P-103-1-41 C-243287 08/28/2019 eera Bhum 200E 08/30/2019 15,567.5 140,108.13 48 Exhibit "P-104", USB. 49 Exhibits "P-103-1-1" to "P-103-1-100", USB. 50 Exhibits "P-1 03-2-1" to "P-1 03-2-99", USB.&/

DECISION Petron Corporation vs. Commissioner of lntema/ Revenue CTA Case No. 10634 SAD SSDT Exhibit No. Reference Date Vessel Name Exh. No. Date of Volume in Amount of No. Payment Liters Excise Tax Paid P-1 03-1-9 P-103-2-9 08/30/2019 P-1 03-1-89 C-243001 08/2812019 jWan Hai 516 P-103-2-88 09103/2019 71,344.00 642,096.00 P-103-1-95 C-245540 08/30/2019 NYK Joanna 13N P-1 03-2-94 09103/2019 1,824.33 16,419.0C P-1 03-1-42 C-245699 0813012019 E.R. Swedem 025E P-103-2-41 0910512019 P-103-1-43 C-251140 09/0412019 Synergy Keelong 934N 48,594.9 437,354.7 P-103-1-50 C-251331 0910412019 Synergy Keelong 934N P-1 03-2-42 09105/2019 34,742.06 312,678.54 P-1 03-1-59 C-251169 0910412019 Synergy Keelong 934N P-103-2-4 0910512019 34,687.81 312,190.29 P-103-1-60 C-251266 09/04/2019 Synergy Keelong 934N 19,546.83 175,921.47 P-1 03-1-96 C-251391 09/0412019 Synergy Keelong 934N P-1 03-2-58 09/0512019 22,531.64 202,784.76 P-103-1-10 C-258087 09/1012019 Teera Bhum 201 E 22,497.12 202,474 08 P-103-1-78 C-257803 09/1012019 Wan Hai 503 E167 P-103-2-59 0910512019 29,07008 261,630.72 P-103-1-97 C-123739 09/1812019 OOCL Beijing 071 W P-103-2-95 09/1112019 71,344.00 642,096.00 P-103-1-37 C-268234 09/1812019 Kola Jati 01 09E P-1 03-2-10 09111/2019 15,518.91 139,670.19 P-103-1-56 C-272288 09/2312019 Zante V.072E 15,554.44 139,990.00 P-1 03-1-57 C-272993 0912312019 Jackson Bay 937N P-103-2-77 09/2012019 22,436.55 201,928.95 P-103-1-61 C-272938 09/2312019 Zante 072E 20,281.25 182,531.25 P-103-1-80 C-272835 0912312019 Jackson Bay 937N P-103-2-96 09/2012019 40,770.83 366,937.47 C-274509 09/2312019 Teera Bhum 202E P-1 03-2-36 09125/2019 22,592.16 203,329.44 15,384.61 138,461.49 P-103-2-55 0912512019 46,620.00 419,580.00 15,518.91 139,670.19 P-103-2-56 09/2512019 401.97 3,617.73 P-1 03-2-60 09125/2019 2,380.90 21,428.10 15,966.03 143,694.27 P-103-2-79 0912612019 69,850.00 628,650.00 71,344.00 642,096.00 P-1 03-1-12 C-277271 09/2612019 SITC Tianjin P-103-2-12 09/2712019 19,960.12 179,641.08 18,150.23 163,352 07 P-103-1-79 C-286294 10/04/2019 OOCL Genoa 035W P-1 03-2-78 10/0912019 19,647.53 176,827.77 P-103-1-75 C-291621 1010912019 Teera Bhum 203E 16,319.66 146,876.94 P-103-2-74 10109/2019 34,594.86 311,353.74 34,562.62 311,063.58 P-103-1-76 C-132602 1011012019 Baltic West OXA3TS P-103-2-75 10111/2019 39,234.64 353,111.76 22,246.54 200,218.86 P-103-1-71 C-296375 10/1412019 Qingdao Tower 940N P-103-2-70 10/1512019 17,953.05 161,577.45 69,979.00 629,811.00 P-103-1-13 C-296992 10/1412019 KMTC Shanghai P-103-2-13 10/15/2019 34,658.07 311,922.63 22,350.23 201 '152.07 P-103-1-11 C-251648 09/0412019 Wan Hai 517 E047 P-103-2-11 10116/2019 116,666.66 1,049,999.94 8,180.88 73,627.92 P-103-1-74 C-308637 10124/2019 PL Germany 074E P-1 03-2-73 10125/2019 19,577.46 176,197.14 P-103-1-81 C-305185 1012212019 NYK Joanna 117N 22,546.08 202,914.72 P-103-2-80 1012512019 18,347.42 165,126.78 32,307.87 290,770.83 P-103-1-51 C-314765 1012912019 Jackson Bay 942N P-103-2-50 1013012019 16,319.66 146,876.94 18,273.92 164,465.28 P-103-1-87 C-314100 1012912019 Kola Waris 016E P-103-2-86 1013012019 1'121 ,005.00 10,089,045.00 3,918.00 35,; 62.00 P-103-1-45 C-316931 1013012019 ACX Crystai210N P-103-2-44 1110412019 (j'' P-103-1-46 C-332612 1111212019 ACX Crystal 211 N P-103-2-45 1111412019 P-103-1-52 C-316992 1013012019 ACX Crystai210N P-103-2-50 1110412019 P-103-1-63 C-316940 1013012019 ACX Crystai210N P-103-2-62 1110412019 P-103-1-82 C-316952 1013012019 ACX Crystai210N P-103-2-81 1110412019 P-103-1-14 C-320576 11/0412019 KMTC Shanghai P-103-2-14 1110412019 P-103-1-44 C-314067 1012912019 Jackson Bay 942N P-103-2-43 1110512019 P-1 03-1-62 C-314082 1012912019 Jackson Bay 942N P-103-2-61 1110512019 P-103-1-15 C-322985 11/0512019 Teera Bhum V.205E P-103-2-15 1110712019 P-103-1-69 C-324565 11/0612019 Bavaria 943N P-103-2-68 1110712019 P-1 03-1-53 C-326197 1110712019 NYK Joanna 118N P-103-2-52 1111112019 P-1 03-1-64 C-326277 1110712019 NYK Joanna 118N P-103-2-63 1111112019 P-103-1-83 C-326309 1110712019 NYK Joanna 118N P-103-2-82 1111112019 P-1 03-1-17 C-327905 1110312019 Zante V.073E P-103-2-17 1111212019 P-1 03-1-88 C-330123 1111112019 Osaka Tower 944N P-103-2-87 1111312019 P-103-1-84 C-332507 11/12/2019 ACX Crystal 211 N P-103-2-83 11/14/2019 P-103-1-22 C-151653 11121/2019 Stolt Momiji P-103-2-22 11/22/2019 P-103-1-22 C-151653 11/2112019 Stolt Momiji P-1 03-2-22 01/2712020

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 SAD SSDT Exhibit No. Reference Date of Volume in Amount of No. Payment Date Vessel Name Exh. No. Liters Excise Tax Paid P-1 03-1-27 C-151687 P-103-1-27 C-151687 11/21/2019 Stolt Momiji P-103-2-27 11/22/2019 1'1 03,588.00 9,932,292.00 P-103-1-77 C-342128 11/21/2019 Stolt Momiji 2,641.00 23,769.00 P-103-1-65 C-343370 11/19/2019 OOCL Genoa 036 P-103-2-27 01/27/2020 3,141.40 28,272.60 P-103-1-85 C-343222 11/20/2019 NYK Joanna 119N P-103-1-33 C-352226 11/20/2019 NYK Joanna 119N P-103-2-76 11/20/2019 22,589.18 203,302.62 P-103-1-39 C-352457 11/27/2019 Kota Waris V. 0165E 18,181.82 163,636.38 P-103-1-90 C-352066 11/27/2019 Kola Waris V. 0165E P-1 03-2-64 11/22/2019 16,701.26 150,311.34 P-103-1-98 C-352301 11/27/2019 ALS Jupiter 946N 16,155.86 145,402.74 P-103-1-67 C-354019 11/24/2019 Kola Waris V. 0165E P-1 03-2-84 11/22/2019 39,969.13 359,722.17 P-103-1-32 C-154541 11/28/2019 ACX Crystai212N 36,443.00 11/28/2019 APL Atlanta/ P-1 03-2-32 11/29/2019 4,049.22 404,948.25 44,994.25 204,103.62 V.OBY48N P-1 03-2-38 11/29/2019 22,678.18 11/28/2019 ACX Crystai212N 11/28/2019 ACX Crystai212N P-1 03-2-89 11/29/2019 11/30/2019 ACX Crystai212N 11/30/2019 Teera Bhum V.206E P-1 03-2-97 11/29/2019 12/03/2019 Teera Bhum V. 207E 12/05/2019 NYK Joanna 120N P-103-2-66 12/03/2019 12/05/2019 NYK Joanna 120N 12/05/2019 NYK Joanna 120N P-103-2-31 12/03/2019 12/11/2019 ACX Crystai213N P-103-1-86 C-354043 12/10/2019 Methi Bhum P-1 03-2-85 12/03/2019 17,872.54 160,852.86 P-103-1-91 C-354023 12/10/2019 Kola Waris V. 0166E P-1 03-2-90 12/03/2019 39,557.61 356,018.49 P-103-1-99 C-355477 12/11/2019 Every Breed V.025N P-1 03-2-98 12/04/2019 16,504.02 148,536.18 P-103-1-16 C-355560 12/11/2019 ACX Crystai213N P-103-2-16 12/04/2019 118,914.06 1,070,226.54 P-103-1-35 C-358457 12/12/2019 Wan Hai 207 P-1 03-2-34 12/05/2019 16,701.26 150,311.34 P-103-1-47 C-360944 P-1 03-2-46 12/09/2019 34,767.10 312,903.90 P-103-1-54 C-360973 OLP37S1NC P-1 03-2-53 12/09/2019 19,718.03 177,462.27 P-1 03-1-66 C-360886 12/12/2019 ACX Crystal 213N P-1 03-2-65 12/09/2019 22,589.18 203,302.62 P-103-1-92 C-369534 12/12/2019 Kola Waris 016E P-103-2-91 12/13/2019 40,246.91 362,222.19 P-103-1-30 C-368287 12/18/2019 Woojin Chems P-103-2-30 12/11/2019 69,722.00 627,498.00 P-103-1-34 C-367619 12/18/2019 NYK Joanna V.121N P-103-2-33 12/12/2019 16,701.26 150,311.34 P-103-1-40 C-369556 12/19/2019 Golden Cygnus P-1 03-2-39 12/13/2019 16,155.86 145,402.74 P-1 03-1-48 C-369545 12/19/2019 Golden Cygnus P-103-2-47 12/13/2019 34,767.10 312,903.90 P-103-1-36 C-371524 12/19/2019 lncheon Chemi P-103-2-35 12/16/2019 13,279.91 119,519.19 12/19/2019 lncheon Chemi P-103-1-55 C-371160 12/20/2019 NYK Joanna 121 N P-1 03-2-54 12/16/2019 39,295.06 353,655.54 P-103-1-72 C-371197 12/23/2019 Golden Cygnus P-103-2-71 12/16/2019 15,949.10 143,541.90 P-103-1-28 C-163142 12/23/2019 Navies Lapis 950N P-103-2-28 12/19/2019 2,213,789.00 19,924,101.00 P-103-1-38 C-377553 12/23/2019 NYK Joanna 121 N P-103-2-37 12/20/2019 117,024.85 1,053,223.65 P-103-1-19 C-163576 12/23/2019 KMTC Gwangyang P-1 03-2-19 12/20/2019 1 ,075,036.00 9,675,324.00 P-103-1-19 C-163576 P-103-2-19 02/21/2020 P-103-1-23 C-163643 1909S P-1 03-2-23 12/20/2019 2,351.00 21 '159.00 P-103-1-23 C-163643 12/23/2019 KMTC Gwangyang P-103-2-23 02/21/2020 1'1 02,919.00 9,926,271.00 P-103-1-49 C-380725 P-103-2-48 12/23/2019 P-103-1-29 C-164581 1909S P-1 03-2-29 12/26/2019 5,412.00 48,708.00 P-103-1-58 C-382433 12/26/2019 Hamburg Bay P-103-2-57 12/26/2019 17,324.08 155,916.72 P-103-1-18 C-382237 P-103-2-18 12/26/2019 1,119,179.00 10,072,611.00 P-103-1-68 C-382874 OIL3WE1PL P-103-2-67 12/27/2019 15,628.30 140,654.70 10/09/2019 JM Sutera 1 40,072.02 360,648.18 09/23/2019 Kelsey 2 P-103-2-69 15,600.48 140,404.32 P-103-1-70 C-382872 P-103-2-99 12/27/2019 15,809.52 142,285.68 P-1 03-1-100 C-383764 P-103-2-2 12/27/2019 2,427.11 21,844.00 P-103-2-4 P-103-1-2 C-132309 01/08/2020 1,074,469.00 9,670,221.00 P-103-1-4 C-125326 01/08/2020 1,129,258.00 10,163,322.00 c1J

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 SAD SSDT Volume in Amount of Exhibit No. Reference Date Vessel Name Exh. No. Date of Liters Excise Tax Paid No. Payment P-1 03-1-6 C-125323 09/23/2019 Kelsey 2 P-103-2-6 01/08/2020 2,220,158.00 19,981,422.00 P-1 03-1-7 C-130101 10/04/2019 Golden Grace 1,126,340.00 10,137,060.00 P-103-1-21 C-135280 10/16/2019 Stolt Hagi P-103-2-7 01/08/2020 1'133,691.00 10,203,219.00 P-1 03-1-24 C-132653 10/10/2019 Princess Topaz 2,216,405.00 19,947,645.00 P-103-1-25 C-135279 10/16/2019 Stolt Hagi P-103-2-21 01/27/2020 2,215,961.00 19,943,649.00 P-103-1-26 C-144944 11/07/2019 Bay Pride 2,215,669.00 19,941,021.00 P-103-1-20 C-163642 12/19/2019 lncheon Chemi P-103-2-24 01/27/2020 1'129,371.00 10,164,339.00 28,013,064.17 '"252,117,577.63 TOTAL P-1 03-2-25 01/27/2020 P-103-2-26 01/27/2020 P-1 03-2-20 02/21/2020 Based on the above dates provided, petitioner's earliest payment date for the period covering August 1, 2019 to December 31, 2019 was August 22, 2019. 51 Counting two (2) years therefrom, the earliest last day for petitioner to file its administrative and judicial claims for refund for the period covering August 1, 2019 to December 31, 2019 was on August 23, 2021, since August 22, 2021 fell on a Sunday. Petitioner filed its administrative claim on August 18, 2021 52 and its judicial claim on August 23, 2021. 53 Thus, petitioner's administrative and judicial claims were filed on time. Second Requisite: The lubricating oils and its additives were sold to tax-exempt entities The second requirement provides that the entity to which the petitioner sold the petroleum products must be an entity exempt by law from indirect and direct taxes. Relative thereto, the pertinent prov1s1on of Section 12(c) of Republic Act (RA) No. 7227,54 as amended by RA No. 9400,55 provides as follows: 51 Exhibit "P-103-2-8", USB. 52 Exhibit "P-7", CTA Docket, p. 478. 53 CTA Docket, p. 6-A. 54 AN ACT ACCELERATING THE CONVERSION OF MILITARY RESERVATIONS INTO OTHER PRODUCTIVE USES, CREATING THE BASES CONVERSION AND DEVELOPMENT AUTHORITY FOR THIS PURPOSE, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES. 55 AN ACT AMENDING REPUBLIC ACT NO. 7227, AS AMENDED, OTHERWISE KNOWN AS THE BASES CONVERSION AND DEVELOPMENT ACT OF 1992, AND FOR OTHER PURPOSES. ~

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 "SEC. 12. Subic Special Economic Zone.- xxx XXX XXX XXX (c) The provision of existing laws, rules and regulations to the contrary notwithstanding, no national and local taxes shall be imposed within the Subic Special Economic Zone. In lieu of said taxes, a five percent (5%) tax on gross income earned shall be paid by all business enterprises within the Subic Special Economic Zone and shall be remitted as follows: three percent (3%) to the National Government, and two percent (2%) to the Subic Bay Metropolitan Authority (SBMA) for distribution to the local government units affected by the declaration of and contiguous to the zone xxx" (Emphasis supplied) Moreover, Sections 3(h) and 21 of the Rules and Regulations Implementing the Provisions Relative to the Subic Special Economic and Freeport Zone and the Subic Bay Metropolitan Authority under RA No. 7227 provide: "SEC. 3. Definitions. For purposes of these Rules, these terms shall be understood to have the following meanings: XXX XXX XXX h. Certificate of Registration refers to the certificate issued by the SBMA representing the registration of the business entity as an SBF Enterprise. XXX XXX XXX SEC. 21. Effect ofIssuance of Certificates. Issuance of the Certificate of Registration or Residency to an SBF Enterprise or Resident, respectively, shall entitle and subject the business enterprise or resident to all the benefits and obligations under the Act and these Rules, and other regulations that may be promulgated by the SBMA, subject to the provisions of Section 5 and 13 hereof. xxx xxx xxx" (Emphasis supplied) With respect to enterprises located in the Subic Special Economic Zone (SSEZ), pursuant to Section 21 of the Rules and Regulations Implementing the Provisions Relative to the Subic Special Economic and Freeport Zone and the SBMA under RA No. 7227, their tax exemption only takes effect upon the SBMA's issuance of a Certificate of Registration (CRT) or Certificate of Registration and Tax Exemption (CRTE). Stated briefly, it is only from the date of issuance of the CRTE will the concerned business enterprise be entitled to the tax exemption from national and local taxes granted under Section 12(c) of RA No. 7227, as amended"cfl

DECISION Petron Corporation vs. Commissioner of lntemal Revenue CTA Case No. 10634 On the other hand, Section 24 of RA No. 7916, 56 as amended by RA No. 8748, 57 provides: "SEC. 24. Exemption from National and Local Taxes.- Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. In lieu thereof, five p~rcent (5%) of the gross income earned by all business enterprises w1thm the ECOZONE shall be paid and remitted as follows: a. Three percent (3%) to the National Government; b. Two percent (2%) which shall be directly remitted by the business establishments to the treasurer's office of the municipality or city where the enterprise is located." Business establishments operating within the ECOZONE are exempt from national and local taxes. In lieu thereof, said enterprises shall pay a total 5% of their gross income to be shared by the national government and the municipality or city where it is located. Similarly, Section 6 of RA No. 9728, 58 as amended by RA No. 11453,59 states that registered business establishments operating within the Freeport Area of Bataan (FAB) shall not be imposed with local and national taxes. In lieu thereof, said business establishments shall pay a 5% final tax on their gross income earned, viz.: "SEC. 6. Imposition of a Tax Rate of Five Percent (5%) on Gross Income Earned.- No taxes, local and national, shall be imposed on registered business establishments operating within the FAB. In lieu thereof, and subject to Section 10 of this Act, said business establishments shall pay a five percent (5%) 56 AN ACT PROVIDING FOR THE LEGAL FRAMEWORK AND MECHANISMS FOR THE CREATION, OPERATION, ADMINISTRATION, AND COORDINATION OF SPECIAL ECONOMIC ZONES IN THE PHILIPPINES, CREATING FOR THIS PURPOSE, THE PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA), AND FOR OTHER PURPOSES. 57 AN ACT AMENDING REPUBLIC ACT NO. 7916, OTHERWISE KNOWN AS THE "SPECIAL ECONOMIC ZONE ACT OF 1995". 58 AN ACT CONVERTING THE BATAAN ECONOMIC ZONE LOCATED IN THE MUNICIPALITY OF MARIVELES, PROVINCE OF BATAAN, INTO THE FREEPORT AREA OF BATAAN (FAB), CREATING FOR THIS PURPOSE THE AUTHORITY OF THE FREEPORT AREA OF BATAAN (AFAB), APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES. 59 AN ACT FURTHER STRENGTHENING THE POWERS AND FUNCTIONS OF THE AUTHORITY OF THE FREEPORT AREA OF BATAAN (AFAB), AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 9728, OTHERWISE KNOWN AS THE "FREEPORT AREA OF BATAAN (FAB) ACT OF 2009". ~

DECISION Petron Corporation vs. Commissioner of tntemal Revenue CTA Case No. 10634 final tax on their gross income earned in the following percentages: "(a) One per centum (1%) to the National Government; "(b) One per centum (1%) to the Province of Bataan; "(c) One per centum (1 %) to the host city/municipality; and "(d) Two per centum (2%) to the Authority of the Freeport Area of Bataan." To support its claim that it sold the imported lubricating oils and its additives subject of the claim to the tax-exempt entities enumerated below, petitioner presented the Certifications issued by the Authority of the Freeport Area of Bataan (AFAB), Philippine Economic Zone Authority (PEZA), and Subic Bay Metropolitan Authority (SBMA), to wit: Customer Name Certificate of Registration or CRTE Lewisberg Warehousing and Certificates of Registration No. 2019-01860 and 2020-02261 as FAB Logistics Enterprise, valid until December 31, 2019 and December 31, 2020, respectively. Petron Freeport Corporation CRTE No. 2003-0073 valid from September 19, 2019 to December 19, 2021 62 TDK Philippines Corp. Certification No. 2019-0271 as PEZA-registered Ecozone Enterprise valid for the year 201963 The foregoing certificates are sufficient to prove that the customers to whom petitioner sold its petroleum products are tax- exempt entities. Any excise taxes paid by petitioner on lubricating oils and its additives subject of the claim which were subsequently sold to aforementioned tax-exempt entities may be refunded. Third Requisite: Petitioner paid excise taxes on its importation of lubricating oils and its additives The third requisite provides that petitioner must be the statutory taxpayer who actually paid the excise taxes on the same imported lubricating oils and its additives which formed part of finished goods that were sold to tax-exempt entities. 60 Exhibit "P-101-5", USB. 61 Exhibit "P-9", USB. 62 Exhibit "P-101-7", USB. 63 Exhibit "P-101-6", USB. (1'1

DECISION Petron Corporation vs. Commissioner of lntemal Revenue CTA Case No. 10634 It is incumbent upon petitioner to prove, with preponderant evidence, that: (i) it imported lubricating oils and its additives and paid the excise taxes on said importations; and, (ii) the imported lubricating oils and its additives actually became a component in the blending process that eventually produced the finished goods or lube products that were sold to its tax-exempt customers. Substantiated Importations and Excise Tax Payments made within the period of the claim Based on petitioner's Schedule of lmportations,64 petitioner made importations of base oils and additives in the total aggregate volume of 28,200,921.98 liters and paid excise taxes thereon in the total amount of P253,808,297.93. However, upon verification by the Court, petitioner's excise tax payment for importation with SAD Reference No. C-151687 was incorrectly recorded in petitioner's Schedule of Importation as P9,955,661.00 instead of P9,956,061.00. Thus, petitioner's total excise taxes paid on importation should be adjusted to P253,808,697.93, or an upward adjustment of P400.00. It must be noted, however, that only the excise tax payments in the amount of P252, 117,577.63 were supported with SADs and/or SSDTs. The following importations with excise tax payment in the amount of P1 ,691,120.30 and with equivalent volume of 187,902.25 liters shall be disallowed for petitioner's failure to provide supporting documents for the same: Single Administrative Document (SAD) Statement of Settlement of Duties and Taxes (SSDT) Volume in Amount of Excise Exhibit No. Reference Date Vessel Name Exhibit No. Date of Payment Liters Tax Paid No. (1) Without supporting proof of payment, i.e., SSDT; outside the period of claim P-103-1-31 C-1542 01/02/2020 Contship Era N/A N/A 93.243.00 ,., 839,187.00 (2) Without supporting importation documents, i.e., SAD and SSDT - C-332435 - - - - 22,419.35 p 201.774.15 - C-297884 - - - - 15,305.78 137,752.00 - C-346198 - - - - 22,419.35 201,774.15 - C-326384 - - - - 34,514.78 310,633.00 Sub-total ,.,., 94,659.26 851,933.30 1,691,120.30 Total 187,902.25 o'1 64 Exhibit "P-1 04", USB.

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 . M~reover, further verification disclosed that the following importations of 14,475,644.00 liters with equivalent excise tax payments in the total amount of P130,280,796.00 were paid beyond the period of claim, or not within August 1, 2019to December 31,2019, thus shall be disallowed by the Court: Single Administrative Document (SAD) Statement of Settlement of Duties and Taxes (SSDT) Volume in Amount of Excise Exhibit No. Reference Date Vessel Name Exhibit No. Date of Liters Tax Paid No. Payment ,. (3) Excise taxes paid outside the period of claim of August 1, 2019 to December 31, 2019 P-103-1-19 C-163576 12/19/2019 Golden Cygnus P-103-2-19 02/21/2020 2,351.00 21,159.00 P-1 03-1-20 C-163642 12/19/2019 lncheon Chemi P-1 03-2-20 02/21/2020 1,129,371.00 10,164,339.00 P-103-1-21 C-135280 10/16/2019 Stolt Hagi P-103-2-21 01/27/2020 1'133,691.00 10,203,219.00 P-1 03-1-22 C-151653 11/21/2019 Stolt Momiji P-1 03-2-22 01/27/2020 3,918.00 35,262.00 P-103-1-23 C-163643 12/19/2019 lncheon Chemi P-103-2-23 02/21/2020 5,412.00 48,708.00 P-103-1-24 C-132653 10/10/2019 Princess Topaz P-103-2-24 01/27/2020 2,216,405.00 19,947,645.00 P-1 03-1-25 C-135279 10/16/2019 Stolt Hagi P-103-2-25 01/27/2020 2,215,961 00 19,943,649.00 P-103-1-26 C-144944 11/07/2019 Bay Pride P-103-2-26 01/27/2020 2,215,669.00 19,941,021.00 P-103-1-27 C-151687 11/21/2019 Stolt Momiji P-103-2-27 01/27/2020 2,641.00 23,769.00 P-103-1-2 C-132309 10/09/2019 JM Sutera 1 P-103-2-2 01108/2020 1,074,469.00 9,670,221.00 P-103-1-4 C-125326 09/23/2019 Kelsey 2 P-103-2-4 01/08/2020 1,129,258.00 10,163,322.00 P-103-1-6 C-125323 09/23/2019 Kelsey 2 P-103-2-6 01/08/2020 2,220,158.00 19,981,422.00 P-103-1-7 C-130101 10/04/2019 Golden Grace P-103-2-7 01/08/2020 ,. 1,126,340.00 10,137,060.00 Total 130,280,796.00 14,475,644.00 The Court's jurisdiction to entertain the present judicial claim shall pertain only to the portion relative to the excise tax payments made during the period August 1, 2019 to December 31, 2019. The Court cannot take cognizance of the claim for tax refund of excise tax payments in relation to imported base oils and additives made beyond August 1, 2019 to December 31, 2019; nor can the Court take cognizance of those alleged importations without any evidence to prove the same. After deducting the foregoing total disallowances from petitioner's corrected importations with total excise tax payments of P253,808,697.93, there leaves a balance of P121,836,781.63, which v;;,; represents the substantiated excise tax payments made within. the period of claim or during August 1, 2019 to December 31, 2019,

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 Particulars Amount Total Excise Tax Payments per Schedule of lmportations65 p 253,808,297.93 Add: Upward adjustment 400.00 Less: Court disallowances 1,691 '120.30 (a) Without SADs and/or SSDTs p (b) Out-of-period of claim 130,280,796.00 (131 ,971 ,916.30) Total Substantiated Excise Tax Payments for the period August p 121,836,781.63 1, 2019 to December 31,2019 Petitioner's total substantiated excise tax payments for its importation of lubricating oils and its additives during the period August 1, 2019 to December 31, 2019 in the amount ofP121 ,836,781.6366 has an equivalent volume of 13,537,420.18 liters.57 The lubricating oils and its additives imported during the period August 1, 2019 to December 31, 2019 formed part of finished goods sold to tax-exempt customers Petitioner's claim for refund of P9,553,568.40 is computed as 1,061,507.60 liters of lubricating oils and its additives which formed part of finished goods sold to tax-exempt entities multiplied by the 8 excise tax paid at the rate of P9.00 per liter, as shown below: 5 Date Invoice No. Customer Volume Excise Tax (a) = (b) (a) � P9.00/Liter 08/24/2019 1010371131 Lewisberg Warehousing and Logistics 180.00 1,620 00 08/24/2019 1010371131 Lewisberg Warehousing and Logistics 08/24/2019 1010371132 Lewisberg Warehousing and Logistics 1,000.00 9,000.00 08/24/2019 1010371135 Lewisberg Warehousing and Logistics 08/24/2019 1010371135 Lewisberg Warehousing and Logistics 180.00 1,620.00 08/24/2019 1010371132 Lewisberg Warehousing and Logistics 08/24/2019 1010371133 Lewisberg Warehousing and Logistics 180.00 1,620.00 08/28/2019 1010375311 Lewisberg Warehousing and Logistics 08/28/2019 1010375311 Lewisberg Warehousing and Logistics 400.00 3,600.00 09/19/2019 1010405173 Lewisberg Warehousing and Logistics 1,000.00 9,000.00 1,200.00 10,800.00 200.00 1,800.00 200.00 1,800.00 36.00 324.00 65 Exhibit "P-1 04", USB. 66 (t-253,808,697.93- P131 ,g71 ,916.30). us(i} 67 (P121 ,836,781.63/t-9.00 rate per liter) 58 Exhibit "P-120",

DECISION Petron Corporation vs. Commissioner of lntemal Revenue CTA Case No. 10634 Date Invoice No. Customer Volume Excise Tax (a) (b) =(a) � P9.00/Liter 09/19/2019 1010405173 Lewisberg Warehousing and Logistics 18.00 162.00 09/19/2019 1010405173 Lewisberg Warehousing and Logistics 200.00 1,800.00 09/19/2019 1010405175 Lewisberg Warehousing and Logistics 400.00 3,600.00 09/19/2019 1010405175 Lewisberg Warehousing and Logistics 200.00 1,800.00 10/03/2019 1010423850 Lewisberg Warehousing and Logistics 600.00 5,400.00 10/03/2019 1010423854 Lewisberg Warehousing and Logistics 360.00 3,240.00 10/03/2019 1010424152 Lewisberg Warehousing and Logistics 600.00 5,400.00 10/11/2019 1010434100 Lewisberg Warehousing and Logistics 414.00 3,726.00 10/11/2019 1010434100 Lewisberg Warehousing and Logistics 180.00 1,620.00 10/11/2019 1010435173 TDK Philippines Corp 3,000.00 27,000.00 10/11/2019 1010435208 TDK Philippines Corp 17,400.00 156,600.00 10/11/2019 1010434100 Lewisberg Warehousing and Logistics 200.00 1,800.00 10/18/2019 1010443581 Lewisberg Warehousing and Logistics 396.00 3,564.00 10/18/2019 1010443589 Lewisberg Warehousing and Logistics 1,200.00 10,800.00 10/18/2019 1010443589 Lewisberg Warehousing and Logistics 600.00 5,400.00 10/18/2019 1010443592 Lewis berg Warehousing and Logistics 200.00 1,800.00 10/18/2019 1010445530 Petron Freeport Corporation 16,000.00 144,000.00 10/18/2019 1010445533 Petron Freeport Corporation 13,600.00 122,400.00 10/18/2019 1010445533 Petron Freeport Corporation 2,400.00 21,600.00 10/18/2019 1010445536 Petron Freeport Corporation 1,008.00 9,072.00 10/18/2019 1010445536 Petron Freeport Corporation 1,600.00 14,400.00 10/18/2019 1010445536 Petron Freeport Corporation 1,600.00 14,400.00 10/18/2019 1010445543 Petron Freeport Corporation 1,008.00 9,072.00 10/18/2019 1010445543 Petron Freeport Corporation 1,600.00 14,400.00 10/18/2019 1010445543 Petron Freeport Corporation 576.00 5,184.00 10/18/2019 1010445544 Petron Freeport Corporation 180.00 1,620.00 10/18/2019 1010445544 Petron Freeport Corporation 576.00 5,184.00 10/18/2019 1010445544 Petron Freeport Corporation 144.00 1,296.00 10/18/2019 1010445545 Petron Freeport Corporation 10/18/2019 1010445545 Petron Freeport Corporation 1,600.00 14,400.00 10/18/2019 1010445545 Petron Freeport Corporation 1,600.00 14,400.00 10/18/2019 1010445545 Petron Freeport Corporation 5,600.00 50,400.00 10/18/2019 1010445536 Petron Freeport Corporation 3,200.00 28,800.00 10/18/2019 1010445543 Petron Freeport Corporation 10/18/2019 1010445535 Petron Freeport Corporation 960.00 8,640.00 10/18/2019 1010443597 Lewisberg Warehousing and Logistics 2,496.00 22,464.00 10/19/2019 1010446349 Petron Freeport Corporation 10/19/2019 1010446051 Lewisberg Warehousing and Logistics 504.00 4,536.00 10/19/2019 1010446051 Lewisberg Warehousing and Logistics 400.00 3.600.00 10/29/2019 1010459130 Lewisberg Warehousing and Logistics 16,000.00 144,000.00 10/29/2019 1010459130 Lewisberg Warehousing and Logistics 600.00 5,400.00 10/30/2019 1010460620 Lewisberg Warehousing and Logistics 400.00 3,600.00 11/05/2019 1010468595 Petron Freeport Corporation 270.00 2,430.00 11/05/2019 1010468595 Petron Freeport Corporation 1,000.00 9,000.00 11/05/2019 1010468595 Petron Freeport Corporation 1,000.00 9,000.00 11/05/2019 1010468595 Petron Freeport Corporation 576.00 5,184.00 11/05/2019 1010468595 Petron Freeport Corporation 576.00 5,184.00 11/05/2019 1010468595 Petron Freeport Corporation 576.00 5,184 00 11/05/2019 1010468595 Petron Freeport Corporation 1,584.00 14,256.00 11/05/2019 101 0468597 Petron Freeport Corporation 4,400.00 39,600.00 11/05/2019 1010468597 Petron Freeport Corporation 5,600.00 50,400.00 11/05/2019 1010468603 Petron Freeport Corporation 400.00 3,600.00 11/05/2019 1010468603 Petron Freeport Corporation 1,008.00 9,072.00 11/05/2019 1010468597 Petron Freeport Corporation 9,600.00 86,400.00 11/05/2019 1010468604 Petron Freeport Corporation 576.00 5,184.00 1,008.00 9,072.00 2,880.00 25,920.00 504.00 4,536.00 C"l

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 Date Invoice No. Customer Volume Excise Tax (a) = (b) (a)* P9.00/Liter 11/11/2019 11/11/2019 1010476201 Petron Freeport Corporation 9,450.00 85,050.00 11/11/2019 1010476201 Petron Freeport Corporation 11/11/2019 1010476201 Petron Freeport Corporation 210.00 1,890.00 11/11/2019 1010476201 Petron Freeport Corporation 11/11/2019 1010476201 Petron Freeport Corporation 2,100.00 18,900.00 11/11/2019 1010476201 Petron Freeport Corporation 11/12/2019 1010476205 Petron Freeport Corporation 2,100.00 18,900.00 11/12/2019 1010477220 Petron Freeport Corporation 11/12/2019 1010477220 Petron Freeport Corporation 800.00 7,200.00 11/15/2019 1010477220 Petron Freeport Corporation 11/15/2019 1010482625 Petron Freeport Corporation 1,680.00 15,120.00 11/15/2019 1010482341 Lewisberg Warehousing and Logistics 11/15/2019 1010482343 Lewisberg Warehousing and Logistics 180.00 1,620.00 11/15/2019 1010482625 Petron Freeport Corporation 11/15/2019 1010482625 Petron Freeport Corporation 6,000.00 54,000.00 11/15/2019 1010482625 Petron Freeport Corporation 11/15/2019 1010482862 Petron Freeport Corporation 4,000.00 36,000.00 11/15/2019 1010482862 Petron Freeport Corporation 11/15/2019 1010482862 Petron Freeport Corporation 6,000.00 54,000.00 11/15/2019 1010482862 Petron Freeport Corporation 11/15/2019 1010483002 Petron Freeport Corporation 960.00 8,640.00 11/15/2019 1010482339 Lewisberg Warehousing and Logistics 11/18/2019 1010482625 Petron Freeport Corporation 400.00 3,600.00 11/18/2019 1010486164 Petron Freeport Corporation 11/18/2019 1010486172 Petron Freeport Corporation 2,000.00 18,000.00 11/18/2019 1010486172 Petron Freeport Corporation 11/18/2019 1010486172 Petron Freeport Corporation 8,400.00 75,600.00 11/18/2019 1010486172 Petron Freeport Corporation 11/20/2019 1010486172 Petron Freeport Corporation 1,200.00 10,800.00 11/20/2019 1010489407 Petron Freeport Corporation 11/20/2019 1010489320 TDK Philippines Corp 4,200.00 37,800.00 11/20/2019 1010489406 Petron Freeport Corporation 11/20/2019 1010489406 Petron Freeport Corporation 3,780.00 34,020.00 11/20/2019 1010489406 Petron Freeport Corporation 11/20/2019 1010489406 Petron Freeport Corporation 1,200.00 10,800.00 11/21/2019 1010489407 Petron Freeport Corporation 11/21/2019 1010490996 Petron Freeport Corporation 3,600.00 32,400.00 11/21/2019 1010490996 Petron Freeport Corporation 11/21/2019 1010490996 Petron Freeport Corporation 8,820.00 79,380.00 11/21/2019 1010490996 Petron Freeport Corporation 11/21/2019 1010490996 Petron Freeport Corporation 16,000.00 144,000.00 11/21/2019 1010490996 Petron Freeport Corporation 11/21/2019 1010490997 Petron Freeport Corporation 1,000.00 9,000.00 11/22/2019 1010490997 Petron Freeport Corporation 12/06/2019 1010491947 Lewisberg Warehousing and Logistics 4,200.00 37,800.00 12/06/2019 1010512258 Petron Freeport Corporation 12/06/2019 1010512254 Petron Freeport Corporation 16,000.00 144,000.00 12/06/2019 1010512246 Petron Freeport Corporation 12/06/2019 1010512246 Petron Freeport Corporation 6,400.00 57,600.00 12/06/2019 1010512246 Petron Freeport Corporation 12/06/2019 1010512254 Petron Freeport Corporation 4,000.00 36,000.00 12/06/2019 1010512254 Petron Freeport Corporation 12/06/2019 1010512301 Petron Freeport Corporation 800.00 7,200.00 12/06/2019 1010512301 Petron Freeport Corporation 1010512301 Petron Freeport Corporation 2,400.00 21,600.00 2,400.00 21,600.00 144.00 1,296.00 18.00 162.00 2,016.00 18,144.00 8,800.00 79,200.00 800.00 7,200.00 576.00 5,184.00 504.00 4,536.00 9,600.00 86,400.00 1,600.00 14,400.00 800.00 7,200.00 2,400.00 21,600.00 800.00 7,200.00 800.00 7,200.00 648.00 5,832.00 14,400.00 129,600.00 800.00 7,200.00 252.00 2,268.00 1,920.00 17,280.00 8,000.00 72,000.00 4,000.00 36,000.00 1,728.00 15,552.00 3,024.00 27,216.00 1,600.00 14,400.00 1,152.00 10,368.00 5,800.00 52,200.00 3,000.00 27,000.00 C!l/

DECISION Petron Corporation vs. Commissioner of lntema/ Revenue CTA Case No. 10634 Date Invoice No. Customer Volume Excise Tax (a) 12/06/2019 (b) = (a) � P9.00/Liter 12/06/2019 12/06/2019 1010512301 Petron Freeport Corporation 648.00 5,832.00 12/06/2019 1010512301 Petron Freeport Corporation 4,000.00 36,000.00 12/06/2019 1010512907 Petron Freeport Corporation 12/06/2019 1010512907 Petron Freeport Corporation 800.00 7,200.00 12/06/2019 1010512907 Petron Freeport Corporation 2,400.00 21,600.00 12/06/2019 1010512907 Petron Freeport Corporation 1,200.00 10,800.00 12/06/2019 1010512907 Petron Freeport Corporation 12/07/2019 1010512907 Petron Freeport Corporation 800.00 7,200.00 12/07/2019 1010512284 Petron Freeport Corporation 800.00 7,200.00 12/07/2019 1010512956 Petron Freeport Corporation 1,080.00 9,720.00 12/07/2019 1010512956 Petron Freeport Corporation 288.00 2,592.00 12/07/2019 1010512956 Petron Freeport Corporation 144.00 1,296.00 12/07/2019 1010512956 Petron Freeport Corporation 800.00 7,200.00 12/07/2019 1010512967 Petron Freeport Corporation 1,600.00 14,400.00 12/07/2019 1010512967 Petron Freeport Corporation 1,728.00 15,552.00 12/07/2019 1010512967 Petron Freeport Corporation 2,800.00 25,200.00 12/10/2019 1010512967 Petron Freeport Corporation 1,000.00 9,000.00 12/10/2019 1010512967 Petron Freeport Corporation 4,000.00 36,000.00 12/10/2019 1010516218 Petron Freeport Corporation 12/10/2019 1010516218 Petron Freeport Corporation 648.00 5,832.00 12/10/2019 1010516218 Petron Freeport Corporation 4,000.00 36,000.00 12/10/2019 1010516218 Petron Freeport Corporation 4,200.00 37,800.00 12/11/2019 1010516218 Petron Freeport Corporation 12/13/2019 1010516218 Petron Freeport Corporation 1,200.00 10,800.00 12/13/2019 1010517604 Lewisberg Warehousing and Logistics 3,150.00 28,350.00 12/13/2019 1010521420 Petron Freeport Corporation 8,400.00 75,600.00 12/13/2019 1010521420 Petron Freeport Corporation 12/13/2019 1010521420 Petron Freeport Corporation 720.00 6,480.00 12/13/2019 1010521420 Petron Freeport Corporation 12/13/2019 1010521420 Petron Freeport Corporation 480.00 4,320.00 12/13/2019 1010521420 Petron Freeport Corporation 12/13/2019 1010521420 Petron Freeport Corporation 360.00 3,240.00 12/13/2019 1010521420 Petron Freeport Corporation 12/13/2019 1010521420 Petron Freeport Corporation 3,360.00 30,240.00 12/13/2019 1010521907 Petron Freeport Corporation 12/16/2019 1010521908 Petron Freeport Corporation 1,470.00 13,230.00 12/16/2019 1010521423 Petron Freeport Corporation 12/17/2019 1010525073 Lewisberg Warehousing and Logistics 2,100.00 18,900.00 12/17/2019 1010525073 Lewisberg Warehousing and Logistics 12/17/2019 1010525900 Petron Freeport Corporation 2,100.00 18,900.00 12/17/2019 1010525900 Petron Freeport Corporation 12/17/2019 1010525900 Petron Freeport Corporation 1,200.00 10,800.00 12/17/2019 1010525900 Petron Freeport Corporation 960.00 8,640.00 12/17/2019 1010525900 Petron Freeport Corporation 12/17/2019 1010525900 Petron Freeport Corporation 2,730.00 24,570.00 12/17/2019 1010525900 Petron Freeport Corporation 12/17/2019 1010525900 Petron Freeport Corporation 1,200.00 10,800.00 12/19/2019 1010525900 Petron Freeport Corporation 2,400.00 21,600.00 12/19/2019 1010525900 Petron Freeport Corporation 1,000.00 12/19/2019 1010529102 Petron Freeport Corporation 9,000.00 12/19/2019 1010529102 Petron Freeport Corporation 12/19/2019 1010529102 Petron Freeport Corporation 400.00 3,600.00 12/19/2019 1010529102 Petron Freeport Corporation 240.00 2,160.00 1010529102 Petron Freeport Corporation 1,000.00 9,000.00 1010529102 Petron Freeport Corporation 2,000.00 18,000 00 1,944.00 17,496.00 252.00 2,268.00 396.00 3,564.00 192.00 1,728.00 1,944.00 17,496.00 576.00 5,184.00 10,368.00 1'152.00 2,160.00 240.00 20,736.00 3,240.00 2,304.00 8,640.00 360.00 28,350.00 960.00 5,670 00 9,450 00 3,150.00 9,450.00 630.00 9,450.00 1,050.00 1,050.00 1,050.00 \1(]

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 Date Invoice No. Customer Volume Excise Tax (a) = (b) (a) � P9.00/liter 12/19/2019 12/19/2019 1010529102 Petron Freeport Corporation 1,200.00 10,800.00 12/19/2019 1010529102 Petron Freeport Corporation 12/19/2019 1010529102 Petron Freeport Corporation 200.00 1,800.00 12/19/2019 1010529102 Petron Freeport Corporation 12/20/2019 1010529102 Petron Freeport Corporation 720.00 6,480.00 12/20/2019 1010531164 Lewisberg Warehousing and Logistics 12/20/2019 1010531164 Lewisberg Warehousing and Logistics 3,570.00 32,130.00 12/26/2019 1010531164 Lewisberg Warehousing and Logistics 12/26/2019 1010538022 Petron Freeport Corporation 2,400.00 21,600.00 12/26/2019 1010538022 Petron Freeport Corporation 12/26/2019 1010538120 Petron Freeport Corporation 400.00 3,600.00 01/16/2020 1010538120 Petron Freeport Corporation 01/16/2020 1010564824 Petron Freeport Corporation 400.00 3,600.00 01/16/2020 1010564824 Petron Freeport Corporation 01/16/2020 1010564824 Petron Freeport Corporation 600.00 5,400.00 01/16/2020 1010564824 Petron Freeport Corporation 01/16/2020 1010564824 Petron Freeport Corporation 2,400.00 21,600.00 01/16/2020 1010564824 Petron Freeport Corporation 01/16/2020 1010564824 Petron Freeport Corporation 1,080.00 9,720.00 01/16/2020 1010564824 Petron Freeport Corporation 01/16/2020 1010564830 Petron Freeport Corporation 2,400.00 21,600.00 01/16/2020 1010564830 Petron Freeport Corporation 01/16/2020 1010564830 Petron Freeport Corporation 2,376.00 21,384.00 01/16/2020 1010564830 Petron Freeport Corporation 01/16/2020 1010564830 Petron Freeport Corporation 960.00 8,640.00 01/16/2020 1010564830 Petron Freeport Corporation 01/16/2020 1010564842 Petron Freeport Corporation 6,300.00 56,700.00 01/16/2020 1010564842 Petron Freeport Corporation 01/16/2020 1010564851 Petron Freeport Corporation 1,470.00 13,230.00 01/16/2020 1010564851 Petron Freeport Corporation 01/16/2020 1010564851 Petron Freeport Corporation 2,100.00 18,900.00 01/16/2020 1010564882 Petron Freeport Corporation 01/16/2020 1010564882 Petron Freeport Corporation 2,100.00 18,900.00 01/16/2020 1010564884 Petron Freeport Corporation 01/16/2020 1010564884 Petron Freeport Corporation 3,150.00 28,350.00 01/16/2020 1010564884 Petron Freeport Corporation 01/16/2020 1010564884 Petron Freeport Corporation 1,200.00 10,800.00 01/16/2020 1010564887 Petron Freeport Corporation 01/16/2020 1010564887 Petron Freeport Corporation 720.00 6,480.00 01/16/2020 1010564887 Petron Freeport Corporation 01/22/2020 1010564830 Petron Freeport Corporation 1,050.00 9,450.00 01/22/2020 1010571754 Lewisberg Warehousing and Logistics 01/22/2020 1010571754 Lewisberg Warehousing and Logistics 2,100.00 18,900.00 01/22/2020 1010571756 Lewisberg Warehousing and Logistics 01/28/2020 1010571754 Lewisberg Warehousing and Logistics 1,050.00 9,450.00 01/28/2020 1010580310 Petron Freeport Corporation 01/28/2020 1010580310 Petron Freeport Corporation 1,200.00 10,800.00 01/28/2020 1010580310 Petron Freeport Corporation 01/28/2020 1010580310 Petron Freeport Corporation 1,200.00 10,800.00 01/28/2020 1010580310 Petron Freeport Corporation 01/31/2020 1010580310 Petron Freeport Corporation 10,500.00 94,500.00 01/31/2020 1010585230 Petron Freeport Corporation 01/31/2020 1010585230 Petron Freeport Corporation 7,200.00 64,800.00 01/31/2020 1010585338 Petron Freeport Corporation 1010585237 Petron Freeport Corporation 900.00 8,100.00 12,000.00 108,000.00 2,000.00 18,000.00 2,000.00 18,000.00 4,000.00 36,000.00 12,000.00 108,000.00 8,000.00 72,000.00 2,400.00 21,600.00 2,400.00 21,600.00 648.00 5,832.00 6,400.00 57,600.00 90.00 810.00 90.00 810.00 2,100.00 18,900.00 234.00 2,106.00 432.00 3,888.00 1,800.00 16,200.00 400.00 3,600.00 1 '161.60 10,454.40 1,050.00 9,450.00 9,450.00 85,050.00 4,200.00 37,800.00 720.00 6,480.00 1,920.00 17,280.00 144.00 1,296.00 252.00 2,268 00 604.80 5,443.20 576.00 5,184.00 CJI1

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 Date Invoice No. Customer Volume Excise Tax (a) (b) = (a) � P9.00/Liter 01/31/2020 1010585208 Petron Freeport Corporation 2,400.00 21,600.00 01/31/2020 1010585208 Petron Freeport Corporation 01/31/2020 1010585208 Petron Freeport Corporation 1,600.00 14,400.00 01/31/2020 1010585208 Petron Freeport Corporation 01/31/2020 1010585208 Petron Freeport Corporation 1,728.00 15,552.00 01/31/2020 1010585230 Petron Freeport Corporation 01/31/2020 1010585237 Petron Freeport Corporation 2,592.00 23,328.00 01/31/2020 1010585237 Petron Freeport Corporation 01/31/2020 1010585237 Petron Freeport Corporation 800.00 7,200.00 01/31/2020 1010585237 Petron Freeport Corporation 01/31/2020 1010585250 Petron Freeport Corporation 504.00 4,536.00 01/31/2020 1010585250 Petron Freeport Corporation 01/31/2020 1010585250 Petron Freeport Corporation 1,600.00 14,400.00 01/31/2020 1010585250 Petron Freeport Corporation 01/31/2020 1010585250 Petron Freeport Corporation 1,296.00 11,664.00 01/31/2020 1010585263 Petron Freeport Corporation 01/31/2020 1010585263 Petron Freeport Corporation 1,944.00 17,496.00 01/31/2020 1010585263 Petron Freeport Corporation 01/31/2020 1010585263 Petron Freeport Corporation 648.00 5,832.00 01/31/2020 1010585263 Petron Freeport Corporation 01/31/2020 1010585263 Petron Freeport Corporation 2,400.00 21,600.00 01/31/2020 101 0585263 Petron Freeport Corporation 01/31/2020 1010585263 Petron Freeport Corporation 2,400.00 21,600.00 01/31/2020 1010585274 Petron Freeport Corporation 01/31/2020 101 0585274 Petron Freeport Corporation 3,600.00 32,400.00 01/31/2020 1010585274 Petron Freeport Corporation 01/31/2020 101 0585274 Petron Freeport Corporation 1,600.00 14,400.00 01/31/2020 1010585274 Petron Freeport Corporation 01/31/2020 1010585274 Petron Freeport Corporation 800.00 7,200.00 01/31/2020 1010585274 Petron Freeport Corporation 01/31/2020 1010585274 Petron Freeport Corporation 5,200.00 46,800.00 01/31/2020 1010585274 Petron Freeport Corporation 01/31/2020 1010585274 Petron Freeport Corporation 1,600.00 14,400.00 01/31/2020 1010585338 Petron Freeport Corporation 01/31/2020 1010585338 Petron Freeport Corporation 2,592.00 23,328.00 01/31/2020 1010585338 Petron Freeport Corporation 01/31/2020 1010585338 Petron Freeport Corporation 400.00 3,600.00 01/31/2020 1010585338 Petron Freeport Corporation 01/31/2020 1010585338 Petron Freeport Corporation 400.00 3,600.00 01/31/2020 1010585338 Petron Freeport Corporation 01/31/2020 1010585338 Petron Freeport Corporation 800.00 7,200.00 01/31/2020 1010585338 Petron Freeport Corporation 01/31/2020 1010585338 Petron Freeport Corporation 800.00 7,200.00 02/06/2020 1010592063 Petron Freeport Corporation 02/06/2020 1010592060 Petron Freeport Corporation 400.00 3,600.00 02/06/2020 1010592060 Petron Freeport Corporation 02/06/2020 1010592060 Petron Freeport Corporation 192.00 1,728.00 02/06/2020 1010592060 Petron Freeport Corporation 02/06/2020 1010592060 Petron Freeport Corporation 192.00 1,728.00 02/06/2020 1010592060 Petron Freeport Corporation 02/06/2020 1010592060 Petron Freeport Corporation 3,600.00 32,400.00 02/06/2020 1010592060 Petron Freeport Corporation 02/14/2020 1010603735 Petron Freeport Corporation 800.00 7,200.00 02/14/2020 1010603745 Petron Freeport Corporation 02/14/2020 1010603778 Petron Freeport Corporation 400.00 3,600.00 400.00 3,600.00 1,296.00 11,664.00 400.00 3.600.00 648.00 5,832.00 144.00 1,296.00 420.00 3,780.00 420.00 3,780.00 1,050.00 9,450.00 1.200.00 10,800.00 2,400.00 21,600.00 4,830.00 43,470.00 360.00 3,240.00 3,444.00 30,996.00 600.00 5,400.00 600.00 5,400.00 180.00 1,620.00 1,050.00 9,450.00 1,470.00 13,230.00 3,780.00 420.00 2,100.00 18,900.00 600.00 5,400.00 360.00 3,240.00 1,920.00 17,280.00 8,400.00 75,600.00 144.00 1.29600 504.00 4,536.00 504.00 4,536.00 cYl

DECISION Petron Corporation vs. Commissioner of lntemal Revenue CTA Case No. 10634 Date Invoice No. Customer Volume Excise Tax (a) (b)= (a) � P9.00/Liter 02/14/2020 02/14/2020 1010603720 Petron Freeport Corporation 5,600.00 50,400.00 02/14/2020 1010603720 Petron Freeport Corporation 4,800.00 43,200.00 02/14/2020 1010603720 Petron Freeport Corporation 1,296.00 11,664.00 02/14/2020 1010603720 Petron Freeport Corporation 02/14/2020 1010603743 Petron Freeport Corporation 648.00 5,832.00 02/14/2020 1010603743 Petron Freeport Corporation 1,008.00 9,072.00 02/14/2020 1010603743 Petron Freeport Corporation 02/14/2020 1010603743 Petron Freeport Corporation 3,200.00 28,800.00 02/14/2020 1010603760 Petron Freeport Corporation 02/14/2020 1010603760 Petron Freeport Corporation 6,400.00 57,600.00 02/14/2020 1010603771 Petron Freeport Corporation 1,296.00 11,664.00 02/14/2020 1010603771 Petron Freeport Corporation 02/14/2020 1010603771 Petron Freeport Corporation 576.00 5,184.00 02/14/2020 1010603786 Petron Freeport Corporation 02/14/2020 1010603786 Petron Freeport Corporation 1,008 00 9,072.00 02/14/2020 1010603786 Petron Freeport Corporation 02/14/2020 1010603786 Petron Freeport Corporation 4,800.00 43,200.00 02/14/2020 1010603786 Petron Freeport Corporation 02/14/2020 1010603786 Petron Freeport Corporation 2,400.00 21,600.00 02/14/2020 1010603786 Petron Freeport Corporation 02/14/2020 1010603787 Petron Freeport Corporation 1,944.00 17,496.00 02/14/2020 1010603787 Petron Freeport Corporation 02/14/2020 1010603787 Petron Freeport Corporation 1,600.00 14,400.00 02/14/2020 1010603787 Petron Freeport Corporation 02/14/2020 1010604455 Petron Freeport Corporation 1,200 00 10,800.00 02/14/2020 1010604455 Petron Freeport Corporation 02/14/2020 1010604455 Petron Freeport Corporation 800.00 7,200.00 02/14/2020 1010604463 Petron Freeport Corporation 02/14/2020 1010604463 Petron Freeport Corporation 800.00 7,200.00 02/14/2020 1010604463 Petron Freeport Corporation 02/14/2020 1010604463 Petron Freeport Corporation 800.00 7,200.00 02/19/2020 1010604463 Petron Freeport Corporation 02/19/2020 1010610124 Lewisberg Warehousing and Logistics 400.00 3,600.00 02/21/2020 1010610124 Lewisberg Warehousing and Logistics 02/21/2020 1010614461 Petron Freeport Corporation 800.00 7,200.00 02/21/2020 1010613527 Lewisberg Warehousing and Logistics 02/21/2020 1010613527 Lewisberg Warehousing and Logistics 1,008.00 9,072.00 02/21/2020 1010613528 Lewisberg Warehousing and Logistics 02/21/2020 1010613532 Lewisberg Warehousing and Logistics 800.00 7,200.00 02/21/2020 1010614461 Petron Freeport Corporation 02/21/2020 1010614461 Petron Freeport Corporation 1,600.00 14,400.00 02/21/2020 1010614461 Petron Freeport Corporation 02/21/2020 1010613527 Lewisberg Warehousing and Logistics 432.00 3,888.00 02/21/2020 1010613532 Lewisberg Warehousing and Logistics 02/21/2020 1010613532 Lewisberg Warehousing and Logistics 4,800.00 43,200.00 02/22/2020 1010614461 Petron Freeport Corporation 02/22/2020 1010615463 Petron Freeport Corporation 4,800.00 43,200.00 02/22/2020 1010615466 Petron Freeport Corporation 02/22/2020 1010615463 Petron Freeport Corporation 2,592.00 23,328.00 02/22/2020 1010615307 Petron Freeport Corporation 02/22/2020 1010615311 Petron Freeport Corporation 3,200.00 28,800.00 02/22/2020 1010615466 Petron Freeport Corporation 02/22/2020 1010615466 Petron Freeport Corporation 2,592.00 23,328.00 02/22/2020 1010616864 Petron Freeport Corporation 1010616864 Petron Freeport Corporation 3,200.00 28,800.00 648.00 5,832.00 648.00 5,832.00 54.00 486.00 504.00 4,536.00 1,536.00 13,824.00 200.00 1,800.00 200.00 1,800.00 72.00 648.00 90.00 810.00 6,300.00 56,700.00 1,200.00 10,800 00 5,250.00 47,250.00 200.00 1,800.00 1,000.00 9,000.00 400.00 3,600.00 4,200.00 37,800.00 144.00 1,296.00 576.00 5,184.00 504.00 4,536.00 1,200.00 10,800 00 3,200.00 28,800.00 11,200.00 100,800.00 1,008.00 9,072.00 600.00 5,400.00 600.00 5,400.00 ~

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 Page 27 of37 Date Invoice No. Customer Volume Excise Tax (a) (b)= (a) * P9.00/Liter 02/22/2020 02/22/2020 1010616864 Petron Freeport Corporation 2,592.00 23,328.00 02/22/2020 1010616864 Petron Freeport Corporation 02/22/2020 1010616864 Petron Freeport Corporation 400.00 3,600.00 02/22/2020 1010616864 Petron Freeport Corporation 02/22/2020 1010616864 Petron Freeport Corporation 828.00 7,452.00 02/22/2020 1010616864 Petron Freeport Corporation 02/22/2020 1010616864 Petron Freeport Corporation 800.00 7,200.00 02/22/2020 1010616866 Petron Freeport Corporation 02/22/2020 1010616866 Petron Freeport Corporation 400.00 3,600.00 02/22/2020 1010616866 Petron Freeport Corporation 02/22/2020 1010616866 Petron Freeport Corporation 450.00 4,050.00 02/22/2020 1010616866 Petron Freeport Corporation 02/24/2020 1010616866 Petron Freeport Corporation 450.00 4,050.00 02/24/2020 1010616875 Petron Freeport Corporation 02/24/2020 1010616875 Petron Freeport Corporation 2,400.00 21,600.00 02/24/2020 1010616875 Petron Freeport Corporation 02/24/2020 1010616875 Petron Freeport Corporation 800.00 7,200.00 02/24/2020 1010616875 Petron Freeport Corporation 02/27/2020 1010616875 Petron Freeport Corporation 1,296.00 11,664.00 03/03/2020 1010622052 Lewisberg Warehousing and Logistics 03/07/2020 1010628096 Lewisberg Warehousing and Logistics 800.00 7,200.00 03/11/2020 1010634078 Lewisberg Warehousing and Logistics 03/11/2020 1010638551 Petron Freeport Corporation 400.00 3,600.00 03/11/2020 1010639963 Petron Freeport Corporation 03/11/2020 1010638531 Petron Freeport Corporation 400.00 3,600.00 03/11/2020 101 0638507 Petron Freeport Corporation 03/11/2020 1010638518 Petron Freeport Corporation 3,150.00 28,350.00 03/11/2020 1010638527 Petron Freeport Corporation 03/11/2020 1010638527 Petron Freeport Corporation 4,200.00 37,800.00 03/11/2020 1010638535 Petron Freeport Corporation 03/11/2020 1010638535 Petron Freeport Corporation 1,050.00 9,450.00 03/11/2020 1010638535 Petron Freeport Corporation 03/11/2020 1010638566 Petron Freeport Corporation 4,200.00 37,800.00 03/11/2020 1010638566 Petron Freeport Corporation 03/11/2020 1010638566 Petron Freeport Corporation 1,920.00 17,280.00 03/11/2020 1010638566 Petron Freeport Corporation 03/11/2020 1010638566 Petron Freeport Corporation 2,100.00 18,900.00 03/11/2020 1010638571 Petron Freeport Corporation 03/11/2020 1010638571 Petron Freeport Corporation 360.00 3,240.00 03/11/2020 1010638576 Petron Freeport Corporation 03/11/2020 1010638576 Petron Freeport Corporation 1,800.00 16,200.00 03/11/2020 1010638576 Petron Freeport Corporation 03/11/2020 1010638576 Petron Freeport Corporation 1,200.00 10,800.00 03/11/2020 1010638576 Petron Freeport Corporation 03/11/2020 1010638599 Petron Freeport Corporation 252.00 2,268.00 03/11/2020 1010638604 Petron Freeport Corporation 03/11/2020 1010638604 Petron Freeport Corporation 1,920.00 17,280.00 03/11/2020 1010638604 Petron Freeport Corporation 03/11/2020 1010638604 Petron Freeport Corporation 907.20 8,164.80 03/11/2020 1010638604 Petron Freeport Corporation 03/11/2020 1010638604 Petron Freeport Corporation 400.00 3,600.00 03/11/2020 1010638604 Petron Freeport Corporation 03/11/2020 1010638622 Petron Freeport Corporation 400.00 3,600.00 03/11/2020 1010638735 Petron Freeport Corporation 1010638735 Petron Freeport Corporation 4,000.00 36,000.00 1,200.00 10,800.00 1,008.00 9,072.00 576.00 5,184.00 576.00 5,184.00 2,400.00 21,600.00 648.00 5,832.00 800.00 7,200.00 2,592.00 23,328.00 800.00 7,200.00 1,008.00 9,072.00 64800 5,832.00 6,000 00 54,000.00 2,000.00 18,000.00 4,000.00 36,000.00 2,000.00 18,000.00 2,000.00 18,000.00 16,000.00 144,000.00 576.00 5,184.00 7,400.00 66,600.00 6,000.00 54,000.00 200.00 1,800.00 180.00 1,620.00 216.00 1,944.00 252.00 2,268.00 16,000.00 144,000.00 7,560.00 68,040.00 4,200.00 37,800.00 &l

DECISION Petron Corporation vs. Commissioner of lntemal Revenue CTA Case No. 10634 Date Invoice No. Customer Volume Excise Tax (a) (b)= (a) � P9.00/Liter 03/11/2020 1010638735 Petron Freeport Corporation 4,200.00 37,800.00 03/11/2020 1010638735 Petron Freeport Corporation 03/11/2020 1010638735 Petron Freeport Corporation 480.00 4,320.00 03/11/2020 1010638735 Petron Freeport Corporation 480.00 4,320.00 03/11/2020 1010638740 Petron Freeport Corporation 03/11/2020 1010638740 Petron Freeport Corporation 1,440.00 12,960.00 03/11/2020 1010638740 Petron Freeport Corporation 3,200.00 28,800.00 03/11/2020 1010638740 Petron Freeport Corporation 3,200.00 28,800.00 03/11/2020 1010638740 Petron Freeport Corporation 03/11/2020 1010638740 Petron Freeport Corporation 900.00 8,100.00 03/11/2020 1010639963 Petron Freeport Corporation 1,600.00 14,400.00 03/11/2020 1010639963 Petron Freeport Corporation 1,600.00 14,400.00 03/11/2020 1010639963 Petron Freeport Corporation 03/11/2020 1010639963 Petron Freeport Corporation 800.00 7,200.00 03/11/2020 1010639963 Petron Freeport Corporation 03/16/2020 1010644809 Petron Freeport Corporation 3,150.00 28,350.00 03/16/2020 1010644809 Petron Freeport Corporation 03/16/2020 1010644809 Petron Freeport Corporation 630.00 5,670.00 03/16/2020 1010644809 Petron Freeport Corporation 8,400.00 75,600.00 03/16/2020 1010644809 Petron Freeport Corporation 03/26/2020 1010654949 Petron Freeport Corporation 600.00 5,400.00 03/26/2020 1010654960 Petron Freeport Corporation 3,150.00 28,350.00 03/26/2020 1010654967 Petron Freeport Corporation 03/26/2020 1010654953 Petron Freeport Corporation 6,300.00 56,700.00 03/26/2020 1010654953 Petron Freeport Corporation 480.00 4,320.00 03/26/2020 1010654953 Petron Freeport Corporation 720.00 6,480.00 03/26/2020 1010654953 Petron Freeport Corporation 03/26/2020 1010654954 Petron Freeport Corporation 5,250.00 47,250.00 03/26/2020 1010654954 Petron Freeport Corporation 03/26/2020 1010654954 Petron Freeport Corporation 1,200.00 10,800.00 03/26/2020 1010654954 Petron Freeport Corporation 03/26/2020 1010654954 Petron Freeport Corporation 288.00 2,592.00 03/26/2020 1010654954 Petron Freeport Corporation 03/26/2020 1010654954 Petron Freeport Corporation 960.00 8,640.00 03/26/2020 1010654954 Petron Freeport Corporation 03/26/2020 1010654959 Petron Freeport Corporation 504.00 4,536.00 03/26/2020 1010654960 Petron Freeport Corporation 03/26/2020 1010654960 Petron Freeport Corporation 5,000.00 45,000.00 03/26/2020 1010654960 Petron Freeport Corporation 03/26/2020 1010654963 Petron Freeport Corporation 5,000.00 45,000.00 03/26/2020 1010654963 Petron Freeport Corporation 03/26/2020 1010654963 Petron Freeport Corporation 4,000.00 36,000.00 03/26/2020 1010654963 Petron Freeport Corporation 03/26/2020 1010654963 Petron Freeport Corporation 2,000.00 18,000.00 03/26/2020 1010654966 Petron Freeport Corporation 03/26/2020 1010654966 Petron Freeport Corporation 1,600.00 14,400.00 03/26/2020 1010654966 Petron Freeport Corporation 03/26/2020 1010654966 Petron Freeport Corporation 1,600.00 14,400.00 03/26/2020 1010656162 Petron Freeport Corporation 03/26/2020 1010656162 Petron Freeport Corporation 648.00 5,832.00 03/26/2020 1010656162 Petron Freeport Corporation 03/26/2020 64800 5,832.00 03/26/2020 1010656162 Petron Freeport Corporation 03/26/2020 1010656162 Petron Freeport Corporation 3,200.00 28,800.00 03/26/2020 1010656162 Petron Freeport Corporation 1010656162 Petron Freeport Corporation 1,600.00 14,400.00 1,600.00 14,400.00 1,600.00 14,400.00 8,000.00 72,000.00 1,008.00 9,072.00 1,600.00 14,400.00 648.00 5,832.00 5,600.00 50,400.00 1,296.00 11,664.00 1,600.00 14,400.00 3,200.00 28,800.00 648.00 5,832.00 1,008.00 9,072.00 2,400.00 21,600.00 9,600.00 86,400.00 5,18400 576.00 5,832.00 648.00 7,200.00 800.00 5,832.00 648.00 21,600.00 2,400 00 7,200.00 800 00 7,200.00 800.00 11,664.00 1,296.00 (11/

DECISION Petron Corporation vs. Commissioner of lntemal Revenue CTA Case No. 10634 Date Invoice No. Customer Volume Excise Tax (a) (b) = (a) � P9.00/Liter 03/26/2020 1010656162 Petron Freeport Corporation 1,296.00 11,664.00 03/26/2020 101 0656162 Petron Freeport Corporation 03/26/2020 1010656162 Petron Freeport Corporation 648.00 5,832.00 03/26/2020 1010656164 Petron Freeport Corporation 03/26/2020 1010656164 Petron Freeport Corporation 800.00 7,200.00 03/26/2020 1010656164 Petron Freeport Corporation 03/26/2020 1010656164 Petron Freeport Corporation 1,600.00 14,400.00 03/26/2020 1010656164 Petron Freeport Corporation 03/26/2020 1010656164 Petron Freeport Corporation 1,600.00 14,400.00 03/26/2020 1010656164 Petron Freeport Corporation 03/26/2020 1010656164 Petron Freeport Corporation 800.00 7,200.00 03/26/2020 1010656164 Petron Freeport Corporation 03/26/2020 1010656164 Petron Freeport Corporation 800.00 7,200.00 03/26/2020 101 0656164 Petron Freeport Corporation 03/26/2020 1010656164 Petron Freeport Corporation 800.00 7,200.00 03/26/2020 1010656164 Petron Freeport Corporation 1,296.00 11,664.00 03/26/2020 1010656164 Petron Freeport Corporation 03/26/2020 1010656164 Petron Freeport Corporation 400.00 3,600.00 03/26/2020 1010656164 Petron Freeport Corporation 05/06/2020 1010683715 Petron Freeport Corporation 400.00 3,600.00 05/06/2020 1010683735 Petron Freeport Corporation 05/06/2020 1010683713 Petron Freeport Corporation 648.00 5,832.00 05/06/2020 1010683731 Petron Freeport Corporation 05/06/2020 1010683713 Petron Freeport Corporation 648.00 5,832.00 05/06/2020 1010683721 Petron Freeport Corporation 05/06/2020 1010683731 Petron Freeport Corporation 400.00 3,600.00 05/06/2020 1010683713 Petron Freeport Corporation 05/06/2020 1010683719 Petron Freeport Corporation 400.00 3,600.00 05/06/2020 1010683727 Petron Freeport Corporation 05/06/2020 1010683709 Petron Freeport Corporation 800.00 7,200.00 05/06/2020 1010683725 Petron Freeport Corporation 05/06/2020 101 0683727 Petron Freeport Corporation 400.00 3,600.00 05/06/2020 1010683709 Petron Freeport Corporation 05/06/2020 1010683719 Petron Freeport Corporation 800.00 7,200.00 05/06/2020 1010683721 Petron Freeport Corporation 05/06/2020 1010683725 Petron Freeport Corporation 400.00 3,600.00 05/06/2020 1010683733 Petron Freeport Corporation 05/06/2020 1010683733 Petron Freeport Corporation 504.00 4,536.00 05/06/2020 1010683721 Petron Freeport Corporation 05/16/2020 1010693171 Petron Freeport Corporation 144.00 1,296.00 05/16/2020 1010693171 Petron Freeport Corporation 05/16/2020 1010693171 Petron Freeport Corporation 960.00 8,640.00 05/16/2020 1010693171 Petron Freeport Corporation 05/16/2020 1010693171 Petron Freeport Corporation 2,016.00 18,144.00 05/18/2020 1010694715 Petron Freeport Corporation 05/18/2020 1010694715 Petron Freeport Corporation 1,008.00 9,072.00 05/18/2020 1010694715 Petron Freeport Corporation 1,008.00 9,072.00 Total 648.00 5,832.00 8,000.00 72,000.00 4,800.00 43,200.00 4,400.00 39,600.00 648.00 5,832.00 400.00 3,600.00 800.00 7,200.00 2,592.00 23,328.00 1,944.00 17,496.00 648.00 5,832.00 648.00 5,832.00 468.00 4,212.00 180.00 1,620.00 3,200.00 28,800.00 4,200.00 37,800.00 2,100.00 18,900.00 1,200.00 10,800.00 8,400.00 75,600.00 1,200.00 10,800.00 1,080.00 9,720.00 540.00 4,860.00 540.00 4,860.00 1,061,507.60 ~ 9,553,568.40 Upon verification, a portion of the refund claim in the aggregate amount of P142,470.00 and with equivalent volume of 15,830.00 liters shall be d;sallowed fm pet;t;oners failure to present the correspon~

DECISION Petron Corporation vs. Commissioner of /ntemal Revenue CTA Case No. 10634 sales invoices, which are essential in proving the fact of sale to tax- exempt entities, to wit: Sl No. Customer Name Volume Excise Tax ,. (a) [(a) x P9.00/liter] 1010371131 Lewisberg Warehousing and Logistics 180.00 1,620.00 1010371131 Lewisberg Warehousing and Logistics 1010371132 Lewisberg Warehousing and Logistics 1,000.00 9,000.00 1010371135 Lewisberg Warehousing and Logistics 1010371135 Lewisberg Warehousing and Logistics 180.00 1,620.00 1010371132 Lewisberg Warehousing and Logistics 1010371133 Lewisberg Warehousing and Logistics 180.00 1,620.00 1010375311 Lewisberg Warehousing and Logistics 1010375311 Lewisberg Warehousing and Logistics 400.00 3,600.00 1010405173 Lewisberg Warehousing and Logistics 1010405173 Lewisberg Warehousing and Logistics 1,000.00 9,000.00 1010405173 Lewisberg Warehousing and Logistics 1010405175 Lewisberg Warehousing and Logistics 1,200.00 10,800.00 1010405175 Lewisberg Warehousing and Logistics 1010482343 Lewisberg Warehousing and Logistics 200.00 1,800.00 1010538022 Petron Freeport Corporation 1010538022 Petron Freeport Corporation 200.00 1,800.00 1010538120 Petron Freeport Corporation 1010538120 Petron Freeport Corporation 36.00 324.00 1010592063 Petron Freeport Corporation 18.00 162.00 TOTAL 200.00 1,800.00 400.00 3,600.00 200.00 1,800.00 2,000.00 18,000.00 2,400.00 21,600.00 1,080.00 9,720.00 2,400.00 21,600.00 2,376.00 21,384.00 180.00 1,620.00 '" 15,830.00 142,470.00 After deducting the disallowed amount of P142,470.00 from petitioner's claim of P9,553,568.40, the amount that may be refunded to petitioner is P9,411 ,098.40. For this excise tax amount to be actually refunded to petitioner, it must be proven by petitioner that the finished goods sold to tax-exempt entities came from the importations of lubricating oils and additives on which petitioner paid excise taxes from August 1, 2019to December31, 2019. As afore-discussed, petitioner's total substantiated excise tax payments for its importation of lubricating oils and its additives during the period August 1, 2019 to December 31, 2019 was computed at P121 ,836, 781.6369 with equivalent volume of 13,537,420.18 liters.70 The Court shall determine whether petitioner has proven that the lubricating oils and its additives of 1,045,677.6071 liters, with excise tax 69 (1'"253,808,697.93- P131 ,971 ,916.30). 70 (1"121 ,836, 781.63/P9.00 rate per liter) 71 (1 ,061,507.60 liters- 15,830.00 liters)~

DECISION Petron Corporation vs. Commissioner of lntema/ Revenue CTA Case No. 10634 payments of P9,411, 098.40, 72 and which formed part of the finished goods sold to tax-exempt entities, came from the valid and substantiated importations of lubricating oils and additives of 13,537,420.18 liters with total excise tax payments of P121 ,836,781.63. Based on the ICPA Report, the raw materials, i.e., imported and local purchases of lubricating oils and additives, are received in the NLOBP. Subsequently, the raw materials are removed either for use in blending or sold to petitioner's customers. The finished goods, which are derived after blending the lubricating oils and additives, are then transferred for storage in Pandacan Terminal. The finished goods are thereafter sold to petitioner's customers including the three tax-exempt entities. 73 Out of petitioner's refund claim, the ICPA was able to trace the imported lubricating oils and its additives in the total volume of 816,099.72 liters, with total equivalent excise tax payment of P7,344,897.58, that petitioner subsequently sold to tax-exempt entities as part of its finished goods. Upon further verification, the Court agrees with the findings of the ICPA except for the lubricating oils and its additives of 245,407.871iters with equivalent excise tax payments of P2,208,670.83. The Court could not trace the lubricating oils and its additives of 245,407.8774 liters, with equivalent excise tax payment of P2,208,670.83, 75 which allegedly formed part of the finished goods sold to tax-exempt entities, to petitioner's importations during the period August 1, 2019 to December 31, 2019. Hence, this amount shall be disallowed. The untraceable volume with its equivalent excise tax is broken down as follows: Particulars Volume in Amount of Unsupported by Sl Liters Excise Tax Unsupported by STO DN/WC/DN Raw materials used in blending and filling but not 15,830.00 p 142,470.00 traced to importation documents due to lack of details Total 92,482.60 832,343.40 137,095.27 1,233,857.43 245,407.87 p 2,208,670.83 72 (P9,553,568.40- P142,470.00). 73 Amended ICPA Report; Exhibit No. "P-32", CTA Docket 1, p. 379. 74 (P2,208,670.82/P9.00 per liter). "{P9,553,568.40- 1'7,344,897.58}C!/

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 Notably, the Court's disallowance of P142,470.00 pertaining to petitioner's sales that were not supported by Sales Invoices is also among the sales that cannot be traced to petitioner's importation of lubricating oils and its additives during the period August 1, 2019 to December 31, 2019. In fine, the total disallowance by the Court amounts to P2,208,670.83. Summary To recap, the Court disallowed petitioner's importations that were not supported by SADs and/or SSDTs in the amount of P1 ,691,120.30 and those importations where the excise taxes in the amount of P130,280, 796.00 were paid beyond the period of the subject claim, or a total of P131,971,916.30. Petitioner's total substantiated importations of lubricating oils and its additives amount to P121 ,836,781.63. With regard to petitioner's importations that were not supported by SADs and/or SSDTs with excise tax payment of P1 ,691, 120.30, verification by the Court discloses that a portion formed part of finished goods which were sold to petitioner's tax-exempt customers and, thus, were related to the subject claim, to wit: SAD SSDT Amount of Related to Claim Exhibit No. Reference Exh. No. Date of Volume in Excise Tax Volume in Amount of No. N/A Payment Liters Paid N/A Liters Excise Tax P-103-1-31 C-1542 93,243.00 p 839,187.00 93,243.00 p 839,187.00 N/A C-332435 N/A N/A 22,419.35 201,774.15 - - N/A C-297884 N/A N/A 15,305.78 137,752.00 - - N/A C-346198 N/A N/A 22,419.35 201,774.15 - - N/A C-326384 N/A N/A 34,514.78 310,633.00 - - TOTAL 187,902.25 ~ 1,691,120.30 93,243.00 ~ 839,187.00 Hence, petitioner's sale to tax-exempt entities of finished goods containing 93,243.00 liters of lubricating oils and its additives and with equivalent excise tax payment of P839, 187.00 shall be disallowed for petitioner's failure to substantiate the payment of the same. On the other hand, of petitioner's importations of lubricating oils and additives with excise tax payments of P130,280,796.00 made beyond the period subject of the claim, or outside the period of August 1, 2019 to December 31, 2019, the Court was able to verify th~

DECISION Petron Corporation vs. Commissioner of /ntemal Revenue CTA Case No. 10634 petitioner's sales of finished goods containing 414,571.82 liters of imported lubricating oils and additives with equivalent total excise tax payment of P3, 731,146.42 were made to its tax-exempt customers, broken down as follows: SAD SSDT Related to Claim Exhibit No. Reference Exh. No. Date of Volume in Amount of Volume in Amount of P-103-1-22 No. Payment Liters Excise Tax Paid Liters Excise Tax P-103-1-27 C-151653 P-1 03-2-22 01/27/2020 3,918.00 35,262.00 - - C-151687 P-103-2-27 01/27/2020 2,641.00 23,769.00 - - P-103-1-19 C-163576 P-1 03-2-19 02/21/2020 2,351.00 21 '159.00 - - P-103-1-23 C-163643 P-103-2-23 02/21/2020 5,412.00 48,708.00 - P-103-1-2 C-132309 P-1 03-2-2 01/08/2020 1,074,469.00 9,670,221.00 - P-103-1-4 23,560.98 P-103-1-6 212,048.82 P-103-1-7 P-103-1-21 C-125326 P-103-2-4 01/08/2020 1'129,258.00 10,163,322.00 51' 156.98 460,412.86 P-103-1-24 P-103-1-25 C-125323 P-103-2-6 01/08/2020 2,220,158.00 19,981,422.00 250,555.58 2,255,000.22 1 '126,340.00 10,137,060.00 C-130101 P-103-2-7 01/08/2020 1,133,691.00 10,203,219.00 - - 2,216,405.00 19,947,645.00 - - C-135280 P-1 03-2-21 01/27/2020 2,215,961.00 19,943,649.00 - - - - C-132653 P-103-2-24 01/27/2020 C-135279 P-1 03-2-25 01/27/2020 P-103-1-26 C-144944 P-103-2-26 01/27/2020 2,215,669.00 19,941,021.00 89,298.28 803,684.52 P-103-1-20 C-163642 P-1 03-2-20 02/21/2020 1,129,371.00 10,164,339.00 - - Total 14,475,644.00 ~ 130,280 '796 .00 414,571.82 ~ 3,731,146.42 Therefore, the above computed sales to petitioner's tax-exempt customers of finished goods containing imported lubricating oils and its additives of 414,571.82 liters with equivalent excise tax payment of P3,731,146.42 shall be disallowed considering that while the same were traced to petitioner's imported lubricating oils and its additives, the payment of excise taxes thereon were made outside the period of claim, or beyond August 1, 2019 to December 31, 2019. Out of petitioner's refund claim, the Court was able to trace that the total excise tax payment amounting to P2, 774,564.16 is part of the substantiated importations of lubricating oils and its additives with excise tax payment in the amount of P121 ,836,781.63, for the period August 1, 2019 to December 31, 2019, detailed as follows: SAD SSDT Related to Claim Reference Date of Volume in Amount of Volume in Amount of No. Payment Liters Excise Tax Paid Exh. No. Exhibit No. Liters Excise Tax P-103-1-8 C-235799 P-103-2-8 08/22/2019 95,012.00 855,108.00 264,788.82 P-103-1-1 C-11 0860 P-1 03-2-1 1,066,223.00 9,596,007.00 29,420.98 08/23/2019; 12/13/2019 P-103-1-94 C-237289 P-1 03-2-93 08/27/2019 16,116.56 145,049.00

DECISION Petron Corporation vs. Commissioner of lntema/ Revenue CTA Case No. 10634 P-103-1-73 C-242571 P-1 03-2-72 08/29/2019 16,204.26 145,838.36 - - P-103-1-93 C-241599 P-103-2-92 08/29/2019 18,793.22 - P-103-1-3 C-113395 P-1 03-2-3 1 '175,039.00 169,139.00 - 08/29/2019; 795,530.83 P-103-1-5 C-113400 P-1 03-2-5 12/13/2019 1,121,181.00 10,575,351.00 88,392.31 08/29/2019; 736,660.80 P-103-1-41 C-243287 P-1 03-2-40 12/13/2019 15,567.57 10,090,629.00 81,851.20 P-103-1-9 C-243001 P-103-2-9 08/30/2019 71,344.00 - P-103-1-89 C-245540 P-103-2-88 140,108.13 - - P-103-1-95 C-245699 P-103-2-94 08/30/2019 1,824.33 - P-103-1-42 C-251140 P-103-2-41 09/03/2019 48,594.97 642,096.00 - - P-103-1-43 C-251331 P-103-2-42 09/03/2019 34,742.06 - P-103-1-50 C-251169 P-103-2-4 09/05/2019 34,687.81 16,419.00 - - P-103-1-59 C-251266 P-103-2-58 09/05/2019 19,546.83 - 09/05/2019 22,531.64 437,354.73 - - 09/05/2019 22,497.12 - 29,070.08 312,678.54 - - 71,344.00 - 15,518.91 312,190.29 - - 15,554.44 - 22,436.55 175,921.47 - - 20,281.25 40,770.83 202,784.76 - - 22,592.16 P-103-1-60 C-251391 P-1 03-2-59 09/05/2019 15,384.61 202,474.08 - - P-103-1-96 C-258087 P-103-2-95 09/11/2019 46,620.00 - P-103-1-10 C-257803 P-1 03-2-10 09/11/2019 15,518.91 261,630.72 - - P-1 03-1-78 C-123739 P-103-2-77 09/20/2019 P-103-1-97 C-268234 P-1 03-2-96 09/20/2019 401.97 642,096.00 - - P-103-1-37 C-272288 P-103-2-36 09/25/2019 2,380.90 15,966.03 139,670.19 - - 69,850.00 - 71,344.00 139,990.00 - 19,960.12 - 18,150.23 201,928.95 - 19,647.53 - P-103-1-56 C-272993 P-1 03-2-55 09/25/2019 16,319.66 182,531.25 - - P-103-1-57 C-272938 P-103-2-56 09/25/2019 34,594.86 P-103-1-61 C-272835 P-1 03-2-60 09/25/2019 34,562.62 366,937.47 - P-103-1-80 C-274509 P-103-2-79 09/26/2019 39,234.64 22,246.54 203,329.44 - 17,953.05 69,979.00 138,461.49 - 34,658.07 P-103-1-12 C-277271 P-103-2-12 09/27/2019 22,350.23 419,580.00 - 116,666.66 P-103-1-79 C-286294 P-1 03-2-78 10/09/2019 8,180.88 139,670.19 - P-103-1-75 C-291621 P-103-2-74 10/09/2019 19,577.46 P-103-1-76 C-132602 P-103-2-75 10/11/2019 22,546.08 3,617.73 - P-103-1-71 C-296375 P-103-2-70 10/15/2019 18,347.42 P-103-1-13 C-296992 P-103-2-13 10/15/2019 32,307.87 21,428.10 - P-103-1-11 C-251648 P-103-2-11 10/16/2019 P-103-1-74 C-308637 P-1 03-2-73 10/25/2019 143,694.27 628,650.00 - 642,096.00 - 179,641.08 - P-103-1-81 C-305185 P-103-2-80 10/25/2019 163,352.07 - P-103-1-51 P-103-2-50 10/30/2019 P-103-1-87 c 314765 P-103-2-86 10/30/2019 176,827.77 - P-1 03-1-45 P-103-2-44 11/04/2019 P-103-1-46 C-314100 P-1 03-2-45 11/14/2019 146,876.94 C-316931 C-332612 311,353.74 311,063.58 P-103-1-52 C-316992 P-1 03-2-50 11/04/2019 353,111.76 P-103-1-63 C-316940 P-1 03-2-62 11/04/2019 200,218.86 P-103-1-82 C-316952 P-103-2-81 11/04/2019 161,577.45 P-103-1-14 C-320576 P-1 03-2-14 11/04/2019 629,811.00 P-103-1-44 C-314067 P-1 03-2-43 11/05/2019 311,922.63 P-103-1-62 C-314082 P-103-2-61 11/05/2019 201 '152.07 P-103-1-15 C-322985 P-103-2-15 11/07/2019 1,049,999.94 P-103-1-69 C-324565 P-103-2-68 11/07/2019 73,627.92 P-103-1-53 C-326197 P-103-2-52 11/11/2019 176,197.14 P-103-1-64 C-326277 P-1 03-2-63 11/11/2019 202,914.72 P-103-1-83 C-326309 P-103-2-82 11/11/2019 165,126.78 P-103-1-17 C-327905 P-103-2-17 11/12/2019 290,770.83

DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 P-103-1-88 C-330123 P-1 03-2-87 11/13/2019 16,319.66 146,876.94 - 11/14/2019 18,273.92 164,465.28 P-103-1-84 C-332507 P-103-2-83 11/22/2019 1,121,005.00 10,089,045.00 - 807,882.59 P-103-1-22 C-151653 P-103-2-22 11/22/2019 1,103,588.00 9,932,292.00 11/20/2019 28,272.60 89,764.73 - P-103-1-27 C-151687 P-103-2-27 11/22/2019 3,141.40 203,302.62 P-103-1-77 C-342128 P-103-2-76 11/22/2019 22,589.18 163,636.38 - - 11/29/2019 18,181.82 150,311.34 - - P-103-1-65 C-343370 P-103-2-64 11/29/2019 16,701.26 - P-103-1-85 C-343222 P-103-2-84 11/29/2019 - 11/29/2019 - P-103-1-33 C-352226 P-103-2-32 12/03/2019 12/03/2019 P-103-1-39 C-352457 P-103-2-38 12/03/2019 16,155.86 145,402.74 - - 12/03/2019 P-103-1-90 C-352066 P-103-2-89 12/04/2019 39,969.13 359,722.17 - - 12/04/2019 P-103-1-98 C-352301 P-103-2-97 12/05/2019 4,049.22 36,443.00 - - 12/09/2019 P-103-1-67 C-354019 P-103-2-66 12/09/2019 44,994.25 404,948.25 - - P-103-1-32 C-154541 P-103-2-31 12/09/2019 12/13/2019 22,678.18 204,103.62 - - 12/11/2019 P-103-1-86 C-354043 P-103-2-85 12/12/2019 17,872.54 160,852.86 - - 12/13/2019 P-103-1-91 C-354023 P-1 03-2-90 12/13/2019 39,557.61 356,018.49 - - 12/16/2019 P-103-1-99 C-355477 P-103-2-98 12/16/2019 16,504.02 148,536.18 - - 12/16/2019 P-103-1-16 C-355560 P-1 03-2-16 12/19/2019 118,914.06 1,070,226.54 - - 12/20/2019 P-103-1-35 C-358457 P-103-2-34 12/20/2019 16,701.26 150,311.34 - - 12/20/2019 P-103-1-47 C-360944 P-103-2-46 12/23/2019 34,767.10 312,903.90 - - 12/26/2019 P-103-1-54 C-360973 P-103-2-53 12/26/2019 19,718.03 177,462.27 - - 12/26/2019 P-103-1-66 C-360886 P-103-2-65 12/27/2019 22,589.18 203,302.62 - - 12/27/2019 P-103-1-92 C-369534 P-103-2-91 12/27/2019 40,246.91 362,222.19 - - P-103-1-30 C-368287 P-103-2-30 69,722.00 627,498.00 P-103-1-34 C-367619 P-103-2-33 16,701.26 150,311.34 - - P-103-1-40 C-369556 P-103-2-39 16,155.86 145,402.74 - - P-103-1-48 C-369545 P-103-2-47 34,767.10 312,903.90 - - P-103-1-36 C-371524 P-1 03-2-35 13,279.91 119,519.19 - - P-103-1-55 C-371160 P-103-2-54 39,295.06 353,655.54 - - P-103-1-72 C-371197 P-1 03-2-71 15,949.10 143,541.90 - - P-103-1-28 C-163142 P-103-2-28 2,213, 789.00 19,924,1 01.00 8,898.60 80,087.40 117,024.85 P-103-1-38 C-377553 P-103-2-37 1,053,223.65 - - P-103-1-19 C-163576 P-103-2-19 1 ,075,036.00 9,675,324.00 9,957.08 89,613.72 1 '102,919.00 9,926,271.00 P-103-1-23 C-163643 P-103-2-23 - P-103-1-49 C-380725 P-103-2-48 17,324.08 155,916.72 - P-103-1-29 C-164581 P-1 03-2-29 1,119,179.00 10,072,611.00 P-103-1-58 C-382433 P-103-2-57 15,628.30 140,654.70 - - P-103-1-18 C-382237 P-103-2-18 P-103-1-68 C-382874 P-103-2-67 40,072.02 360,648.18 P-103-1-70 C-382872 P-1 03-2-69 15,600.48 140,404.32 15,809.52 142,285.68 P-103-1-100 C-383764 P-1 03-2-99 2,427.11 21,844.00 Total 13,537,420.1776 .. 121,836,781.63 308,284.90 .. 2,774,564.16 In fine, petitioner has sufficiently proven its entitlement to a refund in the amount of P2, 774,564.16 representing the erroneously paid excise taxes on 308,284.91 liters of imported lubricating oils and its additives for the period August 1, 2019 to December 31, 2019, wh1ch 76 The ,.0.01 (1"13,537,420.18- 1"13,537,420.17) rounding off difference is negligible0'4

.I,, DECISION Petron Corporation vs. Commissioner of lntemal Revenue CTA Case No. 10634 formed part of the finished goods subsequently sold to tax-exempt entities, computed as follows: Particulars Volume (in Liters) Excise Tax Paid Amount of Refund Claim 1,061,507.60 p 9,553,568.40 Less: Disallowances (a) Non-traceable and without SI!STO 245,407.87 2,208,670.83 DN/WC/DN (b) Without supporting proof of payment (i.e., 93,243.00 839,187.00 SSDT) (c) Excise taxes paid outside the period of ,. 414,571.82 3,731,146.42 claim 6, 779,004.25 753,222.69 Total Disallowances TOTAL REFUNDABLE EXCISE TAX PAID ON 308,284.91 p 2,774,564.1577 IMPORTED LUBRICATING OILS AND ITS ADDITIVES WHEREFORE, premises considered, the present Petition for Review is PARTIALLY GRANTED. Accordingly, respondent is ordered to REFUND in favor of petitioner the amount ofP2,774,564.15, representing petitioner's erroneously paid excise taxes for its imported lubricating oils and its additives for the period August 1, 2019 to December 31, 2019, which formed part of the finished goods that were subsequently sold to tax-exempt entities. SO ORDERED. WE CONCUR: ( ciate Justice ~t111J~ LANEE S. CUI-DAVID Associate Justice 77 The PQ.01 (P2,774,564.16- t-2,774,564.15) rounding off difference is negligible.

.1 DECISION Petron Corporation vs. Commissioner of Internal Revenue CTA Case No. 10634 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. Presiding Justice