PILIPINAS SHELL PETROLEUM CORPORATION v. COMMISSIONER OF INTERNAL REVENUE

CTA Form No. 8 lllllllllllllllllll lllllllllllllllllllllllllllllll llllllllllllllllllllll 21-000355�0086 REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY FIRST DIVISION CTA CASE NO. 10611 PILIPINAS SHELL PETROLEUM NOTICE OF DECISION CORPORATION, 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. VIRTUDES-BABARAN Bureau of Internal Revenue Room 703, Litigation Division, BTR National Office Building Sen. Mi1iam P. Defensor-Santiago Avenue Diliman, Quezon City LAYUG CELICIOUS-SY & VILLAPANDO Unit 503, 5th Floor, The Linden Suites 37 San Miguel Avenue, Ortigas Center 1600 Pasig City GREETINGS: You are hereby notified by these presents that on June 26, 2025, a Decision was rendered in the above-entitled case, copy of which is attached hereto. Quezon City, Phjlippines, July 1, 2025.

I' REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY FIRST DIVISION PILIPINAS SHELL CTA CASE NO. 10611 PETROLEUM CORPORATION, Members: DEL ROSARIO, P.J., Chairperson, Petitioner, BACORRO-VILLENA, and CUI-DAVID, JJ. -versus- COMMISSIONER OF Promulgated: INTERNAL REVENUE, Respondent. X- - - - - - - - - - - - - - - - - - - - - - - - - - - - 7'//~'Y/1'~'' DECISION CUI-DAVID, J. : Before this Court is a Petition for Review praying that judgment be rendered: (1) declaring petitioner entitled to a refund of, or issuance of a tax credit certificate (TCC) for, the aggregate amount of P231 ,338,660 .00, allegedly representing excise taxes paid by petitioner on Jet A-1 fuel from August 2019 to Janu ary 2020, and sold to tax-exempt international air carriers du ring the period September 20 19 to August 2020; and (2) ordering respondent to grant petitioner a refund OJ;" tax credit in the said amount ofP231,338,660.00. 1 THE PARTIES Petitioner Pilipinas Shell Petroleum Corporation is a corporation organized and existing under the laws of the Philippines, with office address at 41st Floor, The Finance Center, 26th Street corner 9th Avenue, Bonifacio Global City, Brgy. Fort Bonifacio, Taguig City.2 1 Docket - Vol. I, p. 28, Petition for Review, Prayer. lft\\.. / 2 Exhibit �'P-97", Docket - Vol. Ill, pp. 1353-1369.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X Respondent is the duly appointed Commissioner of Internal Revenue (CIR), who holds office at the Litigation Division, Room 703, Bureau of Internal Revenue (BIR) National Office Building located at BIR Road, Diliman, Quezon City.3 THE FACTS Petitioner had seven importations of Jet A-1 fuel from August to December 2019, enumerated as follows: Payment Date Quantity Excise Excise Taxes Paid per SSDT _(in Liter~ Tax Rate !'36,558,444.00 !'39, 7 42,292.00 1. Aug. 22, 20194 9,139,611 1"4.00 !'33,442,704.00 2. Sep. 6, 20195 1"4.00 3. Sep.17,2019& 9,935,573 !'4.00 Dec.10,20196 8,360,676 4. Sep.17,2019& 8,360,676 !'4.00 !'33,442,704.00 Dec. 10, 20197 5. Oct. 1, 20198 8,418,800 !'4.00 !'33,675,200.00 6. Nov. 8, 20199 8,059,688 !'4.00 !'32,238,752.00 7. Dec. 23, 201910 6,338,400 1"4.00 !'25,353,600.00 58,613,424 1'234,453,696.00 Total Petitioner filed three separate administrative claims for refund or tax credit certificate together, with the corresponding Applications for Tax Credits/Refunds (BIR Form No. 1914), on November 4, 2020,11 November 26, 202012 and January 18, 2021, 13 with the Excise Large Taxpayers Audit Division II of the BIR, seeking the recovery of alleged excise taxes paid on Jet A- 1 fuel sold to international air carriers during the period September 2019 to August 2020, for their use or consumption outside the Philippines, in the aggregate amount of P231,338,660.00, computed as follows: Docket- Vol. II, p. 799, Joint Stipulation of Facts and Issues (JSFI), Stipulation of Facts, par. 1. Exhibit "P-5"", Docket- Vol. III, p. 1086. Exhibit ��P-15"", Docket- Vol. Ill. p. 1099. Exhibits ��P-25"" and "P-25-1"", Docket- Vol. Ill, pp. I I 12-1 I 13. Exhibits "'P-35'" and "P-35-1". Docket- Vol. II!, pp. 1125-1126. Exhibit "P-44". Docket- Vol. Ill, p. 1137. Exhibit "P-5r. Docket- Vol. Ill, p. 1148. 10 Exhibit ..P-63", Docket- Vol. III, p. 1162. 11 Exhibits '"P-94" and ��P-94-1 ", Docket- Vol. III, pp. I 33&-1341. 12 Exhibits �'P-95" and '�P-95- I", Docket- Vol. III, pp. 1342-1348. 13 Exhibits "P-96'" and "'P-96-1". Docket- Vol. III, pp. 1349-1352.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 3 of65 X------------------------------------------------------------------------------------------X Claim Product Volume in Excise Specific Tax: Amount Jet A-1 Liters Tax Rate 1st per Liter 1'129,501,360.00 2nd 32,375,340 87,558,588.00 3rd 21,889,647 P4.00 14,278,712.00 Total 3,569,678 4.00 P231,338,660.00 4.00 PROCEEDINGS BEFORE THE COURT Petitioner filed the present Petition for Review on October 21, 2021.14 On January 31, 2022, respondent filed his Answer.15 On April 20, 2022, respondent transmitted the BIR Records of this case, consisting of four folders.16 The Pre-Trial Conference was initially set on May 19, 2022, 17 but was later reset to, and held on, June 9, 2022.18 Prior thereto, Respondent's Pre-Trial Briefwas filed on March 16, 2022, 19 while the Pre-Trial Brieffor Petitioner was submitted on June 6, 2022.20 On June 29, 2022, the parties submitted their Joint Stipulation of Facts and Issues,21 which was approved by the Court in its Resolution dated July 7, 2022,22 thereby signifying the termination of the pre-trial. The Pre-Trial Order dated July 29, 2022, was then issued. 23 Trial then ensued, with both parties presenting and offering their respective testimonial and documentary evidence. Petitioner offered the testimonies of the . following individuals, namely: ~ " Docket- Vol. I, pp. 7-35. 15 Docket- Vol. II, pp. 639-647. 16 Docket- Vol. I, pp. 660-662, Respondent's Compliance dated April 12, 2022. 17 Docket- Vol. II, pp. 65CHJ52, Notice of Pre-Trial Conference dated March 10,2022. 18 !d. at 658, Notice of Resetting dated March 25, 2022; 790--790-c, and 791-794, Minutes of the Hearing, and Order dated, June 9, 2022. respectively. IQ !d. at 653-656. 20 /d. at 771-789. 21 /d. at799-SI5. 22 /d. at 8 I9-820. 23 /d. at 835-865.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 4 of65 X------------------------------------------------------------------------------------------X (1) Ms. Anna Beatriz Vergel De Dios (Ms. Vergel De Dios),24 petitioner's Import/Additives Scheduler; (2) Mr. Matias D. Aquiatan, Jr. (Mr. Aquiatan, Jr.),25 petitioner's Operations Manager; (3) Mr. Jonathan Juanillo (Mr. Juanillo),26 petitioner's Terminal Operations Manager at the Tabangao Depot; (4) Ms. Berenice Angelique L. Flores (Ms. Flores), 27 petitioner's Tax Advisor; (5) Atty. Farida Nimfa G. Dimailig,2s petitioner's Country Tax Manager; (6) Ms. Maria Luz S. Verdejo, 29 Head Librarian at the Carlos P. Romulo Library of the Department of Foreign Affairs - Foreign Service Institute; and (7) Mr. Emmanuel Y. Mendoza, 30 the Court- commissioned Independent Certified Public Accountant (ICPA).31 The Report of the ICPA was submitted on October 11, 2022.32 On March 7, 2023, petitioner filed its Formal Offer of Evidence Ad Cautelam with Manifestation [on Omnibus Motion For Leave of Court I. to Reopen the Case for Presentation of Duplicates of Certain Exhibits as Additional Evidence II. to Admit the Supplemental Judicial Affidavit of Berenice Angelique Flores III. to Defer the Filing of Formal Offer ofEvidence]. 33 Respondent, however, failed to file a comment thereon. 34 In the Resolution dated May 24, 2023,35 the Court ruled as follows: ~ 24 Exhibit "P-103", Docket- Vol. I, pp. 114-132: Docket- Vol. II, pp. 909-909-D and 910--912, Minutes of the hearing held on, and Order dated, August 25, 2022, respectively. 25 Exhibit "P-104", Docket- Vol. I, pp. 231-245: Docket- Vol. II, pp. 909-909-D and 910--912, Minutes of the hearing held on, and Order dated, August 25, 2022, respectively. 2' Exhibit �'P-118", Docket- Vol. L pp. 356--361; Docket- Vol. II, pp. 964-967, Minutes of the hearing held on, and Order dated, January 24, 2023. 27 Exhibit "P-119", Docket- Vol. I, pp. 365-378; Exhibit �'P-120", Docket- Vol. 1!, pp. 956-963; Docket- Vol. II, pp. 964-967, Minutes of the hearing held on, and Order dated, January 24. 2023. 28 Exhibit "P-121'', Docket- Vol. I, pp. 423-430: Exhibit �'P-122", Docket- Vol. 1!, pp. 741-744; Docket- Vol. 1!, pp. 964-967, Minutes of the hearing held on, and Order dated, January 24. 2023. 29 Exhibit "P-105'', Docket- Vol. II, pp. 668-674; Docket- Vol. II, pp. 909-909-D and 910-912, Minutes of the hearing held on. and Order dated, August 25.2022, respectively. 30 Exhibit �'P-123", Docket- Vol. II, pp. 935-937 and 951-955; Docket- Vol. II, pp. 964-967, Minutesofthe hearing held on, and Order dated. January 24,2023. ll Docket- Vol. II, p. 909-E, Oath ofCommission dated August 25, 2022; Docket- Vol. II, pp. 909-909-D and 910-- 912, Minutes of the hearing held on, and Order dated, August 25, 2022, respectively. 32 Exhibit "P-124'' (Refer to six separate binders). 33 Docket- Vol.111, pp. 1033-1080. 34 !d. at 1587, Records Verification dated March 28,2023 issued by the Judicial Records Division of this Court. 35 /d. at 1593-1595.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X (1) noted petitioner's Manifestation and the filing of its Formal Offer ofEvidence Ad Cautelam; (2) granted petitioner's Motion for Leave of Court to reopen the case for the reception of additional evidence, particularly, the provisionally marked 6E6x"h,ib"itPs-8"0P"-,47"a'nd"P-"5P1-"8' 0"-P1-"5, 5"fo' r"Pt-h56e" ' p"uPr-p6o1s"e' "P- of establishing the said documents as machine readable copies of the originals and be considered as duplicates; (3) ordered the recall of Ms. Flores to identify the Provisionally marked Exhibits "P-47" , "P-51" , "P-55" , (4) "aPd-m56it"t'e"dPM-6s1." 'F"lPo-r6e6s"' 'S"uPp-p8l0e"m' eanntdal"PJ-u8d0ic-1ia"l�' Affidavit as part of the records of the case; (5) set the case for hearing on July 25, 2023 at 9:00 a.m., for the testimony of Ms. Flores; and, (6) held in abeyance the resolution of petitioner's Formal Offer ofEvidence. � Petitioner then presented its recalled witness, Ms. Flores, on November 8, 2023.36 Subsequently, petitioner filed its Supplemental Formal Offer of Evidence with Manifestation on November 20, 2023. 37 Respondent, however, failed to file his comment thereon.3s In the Resolution dated March 7, 2024,39 the Court admitted petitioner's offered exhibits, except (1) Exhibit "P-123-1", for failure to submit the duly marked exhibit; and, (2) Exhibits "P- 106-1 b" to "P-1 06-3397b", described in petitioner's Formal Offer ofEvidence as "Aircraft Registration found in the CAAP list", for not being found in the records of the case. For his part, respondent offered the testimony of his lone witness, Chief Revenue Officer I Ryan Calvin Morga,40 who ts assigned to the Excise Large Taxpayers Audit Division 2. On March 11, 2024, respondent filed his Formal Offer of Evidence, 41 to which petitioner filed its Comment [Re: Respondent's Formal Offer ofEvidence] on March 18, 2024.42 In 36 Exhibit �'P-125", Docket- Vol. II, pp. 1025-1031; Order dated November 8, 2023, Docket- Vol. Ill, pp. 1613- 1614. 37 Docket- Vol. III. pp. 1617-1625. ~ 8 !d. at 1626, Records Verification dated December 18.2023 issued by the Judicial Records Division of this Court. 39 ld at 1638-1641. 40 Exhibit "R-5", Docket- Vol. II, pp. 724-729: Docket- Vol. 111, pp. 1632-1633, Order dated February 27, 2024. 41 Docket- Vol. Ill, pp. 1642-1645. " !d at 1649-1651.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 6 of65 X------------------------------------------------------------------------------------------X the Resolution dated April 15, 2024,43 the Court admitted all of respondent's offered exhibits. Thereafter, upon petitioner's Motion for Reconsideration with Submission filed on March 26, 2024, 44 and respondent having failed to file his comment,45 the Court, in the Resolution dated May 3, 2024,46 noted petitioner's Manifestation, granted petitioner's Motion for Reconsideration, and admitted in evidence Exhibit "P-123-1". On May 23, 2024, respondent filed his Memorandum, 47 while the Memorandum for Petitioner was submitted on June 7, 2024.48 The present case was submitted for decision on June 28, 2024.49 THE ISSUE The parties submit the following 1ssue for this Court's resolution, to wit: "WHETHER OR NOT PETITIONER IS ENTITLED TO THE RECOVERY OF EXCISE TAXES IN THE AMOUNT OF [P231,338,660.00] PAID IN AUGUST 2019 TO JANUARY 2020 ON IMPORTED JET A-1 FUEL SOLD TO INTERNATIONAL AIR CARRIERS FOR USE OR CONSUMPTION OUTSIDE THE PHILIPPINES DURING THE PERIOD FROM SEPTEMBER 2019 TO AUGUST 2020."50 PETITIONER'S ARGUMENTS Petitioner argues that it timely filed its claim for refund or credit for excise taxes erroneously, wrongfully, illegally, or excessively collected from excise taxes paid from August 20 19 to January 2020, pursuant to Sections 204 and 229 of the National Internal Revenue Code (NIRC) of 1997, as amended; and that it is entitled to the recovery of excise taxes in the amount ofP231,338,660.00 paid from August 2019 to January 43 ld. at 1675. ~ 44 ld. at 1652-1656. 45 /d. at 1669, Records Verification dated Apri\11, 2024 issued by the Judicial Records Division of thiS Court. 46 ld. at 1683-1684. " !d. at 1685-1695. 48 Id. at 1698-1733. 49 !d. at 1724, Notice of the Resolution dated June 28, 2024. 50 Docket- Vol. II, pp. 799-800, JSFI, Stipulation of Issue[s}, par. 2; the JSFI erroneously indicated the amount as P231,668,660.00.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue x------------------------------------------------------------------------------------------x 2020 on Jet A-1 fuel sold to international air carriers for use or consumption outside the Philippines during the period from September 2019 to August 2020. RESPONDENT'S ARGUMENTS Respondent contends that petitioner is not entitled to the refund of excise taxes allegedly paid for the period from September 2019 to August 2020 on its sales and deliveries of Jet A-1 fuel to international carriers in the amount of P231 ,338,660.00; and that claims for refund of excise taxes paid are authorized only by Section 130(D) of the NIRC of 1997, as amended. THE COURT'S RULING The instant Petition for Review is partly meritorious. Relevant to the resolution of the instant case are Sections 204(C) and 229 of the NIRC of 1997, as amended, which read: SEC. 204. Authority of the Commissioner to Compromise, Abate and Refund or Credit Taxes. - The Commissioner may (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." (Emphasis supplied) SEC. 229. Recovery of Tax Erroneously or fllegally 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 v collected, until a claim for refund or credit has been duly filed

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X 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. (Emphases supplied) The aforequoted provisions are clear: within two years from the date of payment of tax, the claimant must first file an administrative claim with respondent before filing its judicial claim with the courts of law. Both claims must be filed within a two-year prescriptive period. Timeliness ofthe 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 years from payment of the tax "regardless of any supervening cause that may arise after payment."51 Moreover, the foregoing provisions authorize the recovery of taxes that were 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 in some other similar respect is illegal.52 In other words, what can be refunded or credited is a tax that is erroneously, illegally, excessively, or in any manner wrongfully collected. In short, there must be a wrongful payment because what is paid, or part of it, is not legally due.s3 Thus, for the present claim for refund or issuance of TCC to prosper, petitioner must establish not only that the claim was timely filed, but also that the exc1se taxes paid were "erroneously or illegally" collected. 51 Commissioner of Internal Revenue v. San lvfigue/ Corporation, et seq., G.R. Nos. 180740 & 180910, November 11, 2019 [Per J. Hernando, Second Division]. 52 Commissioner ofInternal Revenue v. Pilipinas Shell Petroleum Corporation, G.R. No. 188497, April 25. 2012 [Per J. Villarama, Jr., First Division], citing the definition provided in Black's Law Dictionary, Fifth Edition, p. 486. 53 Commissioner ofInternal Revenue v. San Roque Power Corporation, et seq., G.R. Nos. 187485, 196113, & 197156, February 12. 2013 [Per J. Carpio. En Bane].

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 9 of65 X------------------------------------------------------------------------------------------X Petitioner timely filed its administrative and judicial claims. a. Excise Tax on Importation of Jet A-1 Fuel In general, excise tax on imported articles is paid by the owner or importer upon importation and prior to removal from the customs house, as provided in Sections 129 and 131(A) of the NIRC of 1997, as amended, to wit: SEC. 129. Goods Subject to Excise Taxes. - Excise taxes apply to goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition and to things imported. The excise tax imposed herein shall be in addition to the value-added tax imposed under Title IV. .. . (Emphasis and underscoring supplied) 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 Customs Officers, conformably with the regulations of the Department of Finance and before the release of such articles from the customshouse, or by the person who� is found in possession of articles which are exempt from excise taxes other than those legally entitled to exemption. .. . (Emphasis and underscoring supplied) Thus, based on the foregoing provisions, the two-year period prescribed in Sections 204(C) and 229 of the same Code, in relation to the above provisions, should be reckoned from the date of actual payment of the excise tax. In this case, records reveal that petitioner imported Jet A- -rl 1 fuel from August 2019 to December 2019, through its refinery in Tabangao, Batangas (Tabangao Refinery), and paid the corre,ponding exci" taxe,, "'follow""' 54 Refer to Exhibit �'P-124'" (Binder 1 of6), pp. 2 to 3 and Annex .. A-3" thereof.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue x------------------------------------------------------------------------------------------x SAD55 No. SAD Date Volume in Rate Amount of Payment Date Liters C1253857 Aug. 20, 2019 9,139,611 '!'4.00 Excise Tax as per SSDT56 Sep. 5,2019 9,935,573 '!'4.00 c 1344359 Sep. 16, 2019 8,360,676 '!'4.00 !'36,558,444.00 'Aug. 22, 201958 c 1395961 Sep.16, 2019 8,360,676 '!'4.00 !'39,742,292.00 Sep. 6, 201960 c 1396063 Sep. 27,2019 8,418,800 !'4.00 !'33,442,704.00 Sep. 17,2019 & c 1469465 Nov. 6,2019 8,059,688 '!'4.00 !'33,442,704.00 Dec. 10, 201962 c 1678367 Dec. 20,2019 6,338,400 !'4.00 !'33,675,200.00 c 1907269 58,613,424 Sep. 17,2019 & Total Dec. 10, 201964 Oct. 1, 201966 !'32,238,752.00 Nov. 8, 201968 !'25,353,600.00 Dec. 23, 201970 P234,453,696.00 Counting two years from the earliest payment of excise tax on imported articles on August 22, 2019, petitioner had until August 22, 2021, to file its administrative claim for refund. Notably, petitioner filed two administrative claims for refund on November 4, 2020, 71 and November 26, 2020, respectively.72 These administrative claims fell within the two- year prescriptive period. However, petitioner's judicial claim for refund was filed before this Court only on October 21, 2021,73 beyond the two- year period from the earliest date of excise tax payment. Nevertheless, due to the physical closure of� courts resulting from the COVID-1 9 pandemic, the Office of the Court Administrator (OCA) and the Supreme Court (SC) issued several circulars extending or suspending the filing periods for pleadings and motions in courts within the National Capital Region (NCR) until their physical reopening, to wit: 55 That is, ''Single Administrative Document". 56 That is, ''Statement of Settlement of Duties and Taxes". 57 Exhibit "P-4", Docket- Vol. Ill, pp. I084-1085. 58 Exhibit "P-5", Docket- Vol. Ill, p. 1086. 59 Exhibit "P-14", Docket- Vol. Ill, p.l 098. 60 Exhibit "P-15'', Docket- Vol. Ill, p. 1099. 61 Exhibit "P-24", Docket- Vol.lll, p. II II. 62 Exhibits "P-25" and "P-25-1", Docket- Vol. 111, pp. 1112-1113. 63 Exhibit ..P-34'', Docket~ Vol. Ill, p. 1124. 64 Exhibits "P-35" and "P-35-1 ",Docket- Vol. lll, pp. 1125-1126. 65 Exhibit ''P-43", Docket- Vol. Ill, p. 1136. 66 Exhibit "P-44", Docket- Voi.III, p. 1137. 67 Exhibit "P-52", Docket- Vol.lll, p. 1147. 68 Exhibit "P-53", Docket- Vol.lll, p. 1148. 69 Exhibit "P-62��, Docket- Vol. III, p. ll6L 70 Exhibit "P-63", Docket- Vol. III, p. 1162. 71 Exhibits "P-94" and "P-94-1 ", Docket- VoL III, pp. 1336-1341. 72 Exhibits "P-95" and "P-95-1 ", Docket- VoL III, pp. 1342-1348. 73 Docket- VoL I, pp. 7-35.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 11 of65 x------------------------------------------------------------------------------------------x AC No. Date Issued Subject Content 56-2021 Jul. 30, "... All courts and judicial 2021 RE: COURT offices in the NCR shall be PHYSICALLY CLOSED from 2 OPERATIONS ON to 20 August 2021. ... 2-20 AUGUST 2021 The time for filing and service of pleadings and motions during this period is SUSPENDED and shall resume after seven (7) calendar days counted from the first day of the physical reopening of the relevant court." OCA Aug. 20, RE: COURT "Considering that the National Circular 2021 No. 114- OPERATIONS Capital Region (NCR) has been 2021 STARTING 23 placed under Modified AUGUST 2021 Enhanced Community Quarantine (MECQ) beginning 21 August 2021, upon instructions of Chief Justice Alexander G. Gesmundo and pursuant to Administrative Circular (AC) No. 56-2021, dated 30 July 2021, all courts in the NCR, except the Supreme Court, shall be PHYSICALLY CLOSED to court users for the duration of the MECQ.... The time for filing and service of pleadings and motions during this period is SUSPENDED and shall resume after seven (7) calendar days counted from the first day of the physical reopening of the relevant court." OCA Aug. 28, RE: "Considering that the National Circular 2021 REITERATION OF Capital Region (NCR) and other No. 117- OCA CIRCULAR identified areas shall remam 2021 NO. 114-2021, under Modified Enhanced DATED 20 Community Quarantine AUGUST 2021 (MECQ) until 7 September 2021, upon instructions of Chief Justice Alexander G. Gesmundo, OCA Circular No. 114-2021, dated 20 August 2021, is hereby reiterated. All courts m the NCR and identified areas under MECQ, except the Supreme Court, shall be PHYSICALLY CLOSED to court users for the� duration of the MECQ.... The time for filing and service of pJeadin_g_s and motions during

DECISION CTA Case No. 10611 Pi1ipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue x------------------------------------------------------------------------------------------x this period is SUSPENDED and shall resume after seven (7) calendar days counted from the first day of the physical reopening of the relevant court." OCA Sep. 7, 2021 RE: COURT "In view of the continued surge Circular No. 119- OPERATIONS of confirmed COVID-19 cases in 2021 BEGINNING 8 different variants, and SEPTEMBER considering that the proposed 2021 granular or localized lockdown will be pilot-tested in the National Capital Region (NCR) which is on Alert Level 4 (except the City of Manila), upon instructions of Chief Justice Alexander G. Gesmundo, ALL COURTS in the NCR, except the Supreme Court, shall remain PHYSICALLY CLOSED to court users until 30 September 2021, notwithstanding the NCR will be under General Community Quarantine (GCQ), beginning 8 September 2021. ... AC No. 72- Sep. 15, RE: COURT The time for filing and service of 2021 2021 pleadings and motions during OPERATIONS this period is SUSPENDED and shall resume after seven (7) BEGINNING 16 calendar days counted from the first day of the physical SEPTEMBER reopening of the relevant court, xxx" 2021 "Notwithstanding that the National Capital Region (NCR) will be under General Community Quarantine (GCQ) with Alert Level 4 beginning 16 September 2021, ALL COURTS in the NCR will continue to remain PHYSICALLY CLOSED to court users until further notice. The time for filing and service of pleadings and motions during this period REMAINS SUSPENDED and shall resume after seven (7) calendar days counted from the first day of the physical reopening of the relevant court, unless otherwise expressly ordered by the relevant court which shall consider the physical closure of the courts and the granular

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X lockdowns ill the different areas." AC No. 75- Oct. 1, 2021 RE: COURT "Notwithstanding ' any 2021 OPERATIONS BEGINNING 4 modification of the alert level OCTOBER 2021 guidelines ill the National Capital Region (NCR), all appellate collegiate courts within the NCR, except the Supreme Court, shall, beginning 4 October 2021 until further notice, remmn PHYSICALLY CLOSED to court users EXCEPT for urgent matters where in-court hearings may be deemed necessary, at the sound discretion of the Presiding Justice or the Chairpersons of the different divisions. The time for filing and service of pleadings and motions during this period shall REMAIN SUSPENDED until further notice." 83-2021 Oct. 18, RE: COURT "Considering that the 2021 OPERATIONS National Capital Region BEGINNING (NCR) has been placed under OCTOBER 20, Alert Level 3 of the IATF's 2021 UNTIL COVID-19 Alert Levels OCTOBER 29, System, all appellate 2021 collegiate courts within the NCR, beginning October 20, 2021 until October 29, 2021, may conduct in-court proceedings on urgent matters and other matters as may be determined by the presiding justice or the chairpersons of the different divisions, but.. in-court attendance shall be limited to lawyers, parties, and witnesses required to participate in-court. All others who are not required to be in-court but wish to observe the proceedings may do so through videoconferencing, subject to existing guidelines.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner oflnternal Revenue x------------------------------------------------------------------------------------------x The suspens10n of the time for filing and service of pleadings and motions, regardless of the alert level or community quarantine, IS LIFTED. Pursuant to Administrative Circular No. 72-2021, the period for filing and service shall resume seven (7) calendar .d..a,ys from October 20, 2021. In view of the physical closure of courts beginning August 2, 2021, pursuant to SC AC No. 56-2021 dated July 30, 2021, which suspended the filing of pleadings, and SC AC No. 83- 2021 dated October 18, 2021, which lifted said suspension and granted litigants seven calendar days from October 20, 2021 to file the required pleadings, petitioner timely filed the present Petition for Review on October 21, 2021. Correspondingly, petitioner's administrative and judicial claims for refund of excise taxes paid on imported Jet A-1 fuel were filed in accordance with Sections 204(C) and 229 of the NIRC of 1997, as amended, and within the prescribed period. b. Excise Tax on Locally Produced or Manufactured Jet A-1 Fuel Excise taxes on locally produced or manufactured petroleum products are generally paid by the manufacturer or producer prior to removal of the domestic products from the place of production, pursuant to Section 130(A)(2) of the NIRC of 1997, as amended, to wit: SEC. 130. Filing of Return and Payment of Excise Tax on Domestic Products. - (A) Persons Liable to File a Return, Filing of Return on Removal and Payment of Tax. - (2) Time for Filing of Return and Payment of the Tax.�- Unless otherwise specifically allowed, the return shall be filed and the excise tax paid by the manufacturer or

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue x------------------------------------------------------------------------------------------x producer before removal of domestic products from place of production: ... (Emphasis and underscoring supplied) Thus, pursuant to Sections 204(C) and 229, in relation to Section 130(A)(2), petitioner's administrative and judicial claims must be filed within two years from the earliest date of removal of the locally produced petroleum products from the place of production. During the period from December 23, 2019, to January 30, 2020, petitioner paid excise taxes in advance on locally produced or manufactured Jet A-1 withdrawn by petitioner from its Tabangao Refinery, as follows: Withdrawal Withdrawal BIR Form No. 2200-P Date of Volume Excise Tax Date Certificate Filing Reference No. Payment Liters (Advance payment) 1'3,637 ,844.0076 Jan. 9, 20180060637274 Dec. 23, 909,461 2020 07190003366152575 2019 905,780 1'7 ,235,520.0078 Jan. 22, 20180060660477 2020 07200003385520879 Jan. 8, 903,100 1'3,626, 184.0084 Feb. 2, 20180060676280 07200003414318281 906,546 2020 20180060686582 07200003428927683 2020 1'14,499,548.00 Feb. 10, Jan. 22, 3,624,887 2020 2020 Total Jan. 29, 2020 Based therefrom, the earliest removal of petitioner's locally produced or manufactured fuel oil from Tabangao Refinery to Tabangao Terminal as per Withdrawal Certificate (WC) No. 201800606372,85 occurred on January 9, 2020, for which petitioner paid the corresponding excise taxes by applying, on January 30, 2020,86 the advance payment made on December 23, 2019. Thus, petitioner had two years from January 9, 2020, or until January 9, 2022, to file both its administrative and judicial claims for refund. As such, the filing of petitioner's administrative claims on January 18, 202187 and judicial claim 74 Exhibit "P-71 ", Docket- Vol.lll, p. 1172. " Exhibit "P-75'', Docket- Vol. 111, pp. 1176-1178. 76 Exhibit "P-I 05-1 b", USB (Exhibit '�P-124-2"). 77 Exhibit "P-72", Docket- Vol. Ill. p. 1173. 78 Exhibit "P-105-2b", USB; Amount in BIR Form No. 2200-P includes payment of excise ta'< for domestic sales, Refer to Annex A-5, Exhibit ''P-124'' (Binder 1 of6). 79 Exhibit �'P-76", Docket- Vol. 1II, pp. 1179-1181. 80 Exhibit "P-73", Docket- Vol. Ill. p. 1174. 81 Exhibit �'P-77", Docket- Voi.II1, pp. 1182-1183. 82 Exhibit "P-74", Docket- Voi.II1, p. 1175. &3 Exhibit "P-78, Docket- Vol. III, pp. 1184-1185. " Exhibit "P-1 05-3b", USB (Exhibit "P-124-2"). 85 Exhibit "P-71". Docket- Vol. 1II, p. 1172; Exhibit "P-105-68c", USB (Exhibit "P-124-2"). 80 Exhibit "P-105-Ib", USB (Exhibit "P-124-2"). 87 Exhibits "P-96" and �'P-96-1 ��,Docket- Vol. Ill, pp. 1349-1352.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue x------------------------------------------------------------------------------------------x on October 21, 2021,88 as discussed above, were both made within the two (2)-year prescriptive period provided under Sections 204(C) and 229, in relation to Section 130(A)(2). In view of the timely filing of the present Petition for Review, this Court has jurisdiction to entertain the same. Having settled the foregoing matters, the Court shall now determine whether the excise taxes paid by petitioner from August 2019 to January 2020 on imported and � locally manufactured Jet A-1 fuel sold to international air carriers from September 20 19 to August 2020 were illegal or erroneous. The excise taxes paid on imported and locally manufactured or produced Jet A-1 fuel sold to international air carriers were erroneously or illegally collected. Respondent argues that based on Section 129 of the NIRC of 1997, as amended, petitioner, as a manufacturer of petroleum products sold to international carriers of Philippine or foreign registry, is liable to pay excise taxes due thereon. In other words, the petitioner becomes liable for excise tax upon the fuel it manufactures as soon as they are in existence. Petitioner may only claim a refund if the excise tax was erroneously paid. However, respondent stresses that the excise tax paid by petitioner was legally and validly collected, as it is indeed liable to pay such tax. Respondent further contends that since petitioner sold fuel to international carriers, Section 135 of the NIRC of 1997, as amended, applies, which exempts the buyers, i.e., international carriers, from excise tax. As such, the buyer of the fuel is not liable to pay the excise tax due thereon, or, in other words, the excise tax due on the said transaction cannot be included in the purchase price, as the buyers are already exempt entities. Respondent also claims that on its face, Section 135 of the NIRC of 1997, as amended, does not grant exemption to sellers. Rather, it enumerates transactions where petroleum product~ / 88 Docket- Vol. I, pp. 7-35. \'l"

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue x------------------------------------------------------------------------------------------x sold to international carriers and entities enumerated therein are exempt from excise tax. Petitioner anchors its. claim for refund on Section 135 of the NIRC of 1997, as amended. However, respondent argues that this provision cannot be invoked by sellers like petitioner, but only by the exempt buyers. In the case at hand, the petroleum product sold is subject to excise tax, as it is a fact that the buyers, as enumerated in Section 135, are exempt entities. Thus, respondent asserts that petitioner cannot invoke the exemption granted to these exempt entities as a ground to claim a refund of the excise tax paid. The Court disagrees with respondent. To recall, Section 129 of the NIRC of 1997, as amended, states that excise taxes apply to "goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition and to things imported, as well as services performed in the Philippines." Corollary thereto, Section 135 of the NIRC of 1997, as amended, reads: 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 be stored in a bonded storage tank and may be disposed of only in 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 or 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; (c) Entities which are by law exempt from direct and indirect taxes." (Emphasis and underscoring supplied) A plain reading of Section 135 reveals that the term "petroleum products" is not qualified. The law does not distinguish between locally manufactured and imported ~

DECISION CTA Case No. 10611 Pi1ipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X petroleum products to qualify for an excise tax exemption. Where the law does not distinguish, courts should not distinguish.89 Thus, the exemption under Section 135 applies regardless of whether the subject Jet A-1 fuel was locally manufactured or imported, provided the conditions therein are complied with by the refund claimant. Moreover, in Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue (2021 Pilipinas Shell case),90 the Supreme Court sitting En Bane discussed lengthily the nature of excise tax in this wise: By its nature, an excise tax under the Philippine taxation system pertains to the tax levied on certain goods, whether at a specific rate or ad valorem. As case law characterizes, an excise tax is not a tax on the exercise of a privilege, but rather a levy on certain articles which are manufactured or imported for domestic consumption. It is equally settled that the accrual or liability to pay the same arises immediately upon importation or as soon as the goods come into existence when manufactured. Furthermore, excise taxes are indirect taxes, as opposed to direct taxes. Pertinently, these types of taxes relate to the statutory taxpayer who is obligated to pay taxes to the government. In this relation, one must understand the concepts of tax incidence (or the actual liability to pay the tax) and tax burden (the economic burden of the tax incident). On the one hand, direct taxes are 'those that are exacted from the very person who, it is intended or desired, should pay them; they are impositions for which a taxpayer is directly liable on the transaction or business he is engaged in,' which means, the tax incidence and tax burden fall upon the same person. On the other, indirect taxes are 'those that are demanded, in the first instance, from, or are paid by, one person in the expectation and intention that he can shift the burden to someone else. Stated elsewise, indirect taxes are taxes wherein the liability for the payment of the tax falls on one person but the burden thereof can be shifted or passed on to another person, such as when the tax is imposed upon goods before reaching the consumer who ultimately pays for it. When the seller passes on the tax to his buyer, he, in effect, shifts the tax burden, not the liability to pay it, to the purchaser as part of the price of goods sold or services rendered.' As jurisprudence explains, 'this shifting process, ~ 89 Manila International Airport Authority v. Court ofAppeals, eta!., G.R. No. 155650, July 20,2006 [Per J. Carpio. En Bane]. 90 G.R. No. 211303, June 15,2021 [Per J. Perlas-Bernabe. En Bane].

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X otherwise known as 'passing on,' is largely a contractual affair between the parties. Meaning, even if the purchaser effectively pays the value of the tax, the manufacturer [or] producer (in case of goods manufactured or produced in the Philippines for domestic sales or consumption or for any other disposition) or the owner or importer (in case of imported goods) [is] still regarded as the statutory [taxpayer] under the law. To this end, the purchaser does not really pay the tax; rather, he only pays the seller more for the goods because of the latter's obligation to the government as the statutory taxpayer.' Thus, when it comes to indirect taxes, the statutory taxpayer remains to be the manufacturer or importer of the articles. Despite being able to pass the burden of the tax to the buyer as an inherent component of the total price of the article, the onus to actually pay the excise tax and to remit the returns incidental thereto remains with the statutory taxpayer, who must correspondingly benefit from any tax exemption. In effect, upon the sale of the goods, the portion of the price corresponding to the excise tax originally paid by the manufacturer or importer is not per se the excise tax liability imposed under Section 129 of the Tax Code. The price passed on, and assumed by the buyer of the goods, is therefore no different from any other component cost in arriving at the price of the article sold, such as raw material cost or distributed overhead expenses. In a similar situation, the Court held that '[e)ven if the consumers or purchasers ultimately pay for the tax, they are not considered the taxpayers. The fact that [statutory taxpayer1importer], on whom the excise tax is imposed, can shift the tax burden to its purchasers does not make the latter the taxpayers and the former the withholding agent. [The purchaserI end-consumer] ultimately bears the tax burden, but this does not transform [its] status into a statutory taxpayer.' This distinction between statutory taxpayer and the purchaser who assumes the tax burden when the costs of the taxes are passed on to it as part of the purchase price is material to understand the 'exemption' granted under Section 135 governing excise taxes. III. At its core, the purpose of a grant of tax exemption is 'some public benefit or interest, which the law-making body considers sufficient to offset the monetary loss entailed in the grant of the exemption.' However, the object of the grant of tax exemption is not necessarily a natural person similar to how 'the objects of taxation are either persons, property[,] and property rights within the jurisdiction of the taxing authority.' As such, generally speaking, the object of tax exemptions may either be personal or impersonal. Personal exemptions conceptually pertain to those 'granted directly in

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X favor of such persons as are within the contemplation of the law granting the exemption.' On the other hand, an impersonal exemption may be said to exist when a tax exemption is 'granted directly in favor of a certain class of property.' If the tax exemption is impersonal in nature, then, regardless of who transacts with the property, the exemption should still apply. This framework of personal and impersonal tax exemptions underpins the exemption granted under Section 135 on excisable articles. Notably, the Court, in the 2014 Pilipinas Shell Resolution, stated that the 'exemption from payment of excise tax' under Section 135 is 'conferred on international carriers who purchased the petroleum products of respondent'; thus, in said case, the tax exemption under Section 135 covering said products was characterized as a grant of a personal tax exemption. However, in the subsequent case of 2015 Chevron, the Court effectively abandoned the foregoing characterization, and instead, correctly categorized that the tax exemption under Section 135 is 'in favor of the petroleum produc;ts on which the excise tax was levied in the first place.' As such, the Court, in 2015 Chevron, validated the nature of Section 135 as a provision conferring an impersonal tax exemption, which, in fact, cogently squares with the nature of excise taxes being a tax on property, rather than a tax on persons. Being an impersonal tax exemption, Section 135 cannot be therefore interpreted as an exemption primarily conferred to the buyers because 'they are not under any legal duty to pay the excise tax.' To reiterate, upon the buyers' purchase of the articles, the 'excise tax' they pay, if any, is, in reality, a mere passed-on cost that forms part of the purchase price. Hence, while purchasers bear the economic burden, they do not, by the mere fact of assuming the passed-on costs, become legally regarded as statutory taxpayers. In this regard, Associate Justice Henri Jean Paul B. Inting aptly observed that 'a tax immunity would lose its meaning if we insist that it is available only to a person who, in the first place, has no obligation to pay the tax due on the subject article/transaction. It can only be enjoyed in its truest'sense by the person who is liable for the tax and wishes to be immune from therefrom.' The impersonal nature of the tax exemption IS also expressed in the wording itself of Section 135: As worded, the object of Section 135 itself is not the enumerated persons but rather, the 'petroleum products sold.' Palpably, based on Section 135's phraseology, the

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X enumerated persons are merelv descriptive of the petroleum products, i.e., the persons to which the products are sold to. As such, the wording of Section 135 hews more closely with the character of impersonal tax exemptions, which is, in turn, consistent with the nature of excise taxes as taxes not on persons but on the goods/articles. As equally observed by Associate Justice Alfredo Benjamin S. Caguioa, '[t]he succeeding paragraphs (a), (b), and (c) do not confer nor refer to the tax exemption. Paragraphs (a), (b)[,] and (c) simply enumerate and describe the entities to whom petroleum products must be sold to make the excise tax exemption operative.' IV. At this juncture, it is likewise relevant to mention that since an excise tax is in the nature of a property tax, it is thus erroneous to consider the operation of a tax exemption thereto in the same way as a transactional tax, wherein every purchaser and seller may be considered as a statutory taxpayer for every succeeding transaction, only ending with the final consumer. Rather, the exemption under Section 135 must be reconciled with the idea that liability for the tax attaches to the articles as soon as they come into existence or immediately upon importation. The Court, in the 2015 Chevron, had already settled that the true status of the goods, whether ultimately taxable or tax-exempt, is actually conditional or subject to confirmation upon the sale of the articles to any of the entities enumerated under Section 135. This conditional taxability can actually be seen in another related provision in the Tax Code, i.e., Section 131 thereof: Section 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 Customs 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. In the case of tax-free articles brought or imported into the Philippines by persons, entities, or agencies exempt from tax which are subsequentlv sold, transferred or exchanged in the Philippines to non-exempt persons or entities, the purchasers or

DECISION CTA Case No, 10611 Pilipinas Shell Petroleum Corporation v, Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X recipients shall be considered the importers thereof, and shall be liable for the duty and internal revenue tax due on such importation., x x x x (Emphasis and underscoring supplied) 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 20 15 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 !35'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,' Based on (a) the nature of excise taxes as a property tax and an indirect tax, and (b) the principle that a buyer, when shouldering the tax burden, does not become the statutory taxpayer, it is thus clear that the purchaser of local products (such as international carriers) cannot be deemed to have been conferred a tax exemption when it has not been imposed a tax liability, In the ordinary course of things, international carriers do not manufacture or import petroleum products and hence, are not statutory taxpayers to which the exemption under Section 135 could pertain, If anything, international carriers merely bear the tax burden when the costs therefor are passed on to them by the actual manufacturers or importers, However, as earlier discussed, the 'passing on' of the tax burden is largely a contractual affair between the parties and should not determine the tax incidence imposed by law unless the contrary is provided, As such, the tax exemption under Section 135 must correspondingly benefit the one who actually bears the liability to pay the same (i.e., the importers/manufacturers of petroleum products sold to international carriers, among others), and not the one who simply bears the economic burden thereof (i.e., the purchasers of the products, such as international carriers). (Emphasis supplied)

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 23 of65 x------------------------------------------------------------------------------------------x The Supreme Court has categorically rejected respondent's argument that only buyers who are exempt entities may invoke the excise tax exemption under Section 135. Contrary to this claim, the Supreme Court clarified that the exemption must benefit the party legally liable to pay the tax, namely, the importer or manufacturer of petroleum products sold to international carriers, not merely the party that bears the economic burden, such as the purchaser. Applying the foregoing principle, petitioner's sale of imported and locally manufactured Jet A-1 fuel to international air carriers renders the fuel tax-exempt. Accordingly, the excise taxes previously paid on the imported and locally manufactured Jet A-1 fuel were erroneously or illegally collected and are the proper subject of a claim for refund or credit under Sections 204(C) and 229 of the NIRC of 1997, as amended. The excise taxes due on the imported and locally produced Jet A-1 fuel subject of the present claim were duly paid by petitioner. Records show that petitioner, which operates its own Tabangao Refinery, generally produces Jet A-1 fuel through the crude oil refining process. When additional supplies are required, the petitioner first attempts to source them from local suppliers before resorting to importation.91 Petitioner occasionally imports finished Jet A-1 fuel, particularly when the refinery shuts down or if the demand for Jet A-1 fuel exceeds the projected supply of locally manufactured Jet A-1 fuel.92 Also, petitioner follows a defined process and documentation flow, with respect to the importation' of Jet A-1 fuel, which may be simplified in the following stages: (1) requisition of goods and importation; (2) arrival and discharge of imported goods; and (3) payment of taxes and import duties. 93 91 Q&A No. I0, Exhibit "P-I 03", Docket- Vol. I, p. 117. 92 Q&A No. 11, Exhibit ''P-103", Docket- Vo1.1, p. 117. 93 Q&A No. 13, Exhibit ''P-1 03", Docket- Vol. I. p. 117.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 24 of65 X------------------------------------------------------------------------------------------X In connection with the present claim, petitioner made seven importations of Jet A-1 fuel between August and December 2019, enumerated as follows: Payment Date Quantity Excise Excise Taxes per SSDT (in Liters) Tax Rate Paid 1. Aug. 22, 201994 9,139,611 P4.00 P36,558,444.00 2. Sep. 6, 201995 9,935,573 P4.00 P39,742,292.00 3. Sep. 17,2019 & 8,360,676 P4.00 P33,442,704.00 Dec. 10,201996 4. Sep. 17,2019 & 8,360,676 P4.00 P33,442,704.00 Dec. 10,201997 5. Oct. 1, 201998 8,418,800 P4.00 P33,675,200.00 6. Nov. 8, 201999 8,059,688 P4.00 P32,238,752.00 7. Dec. 23, 2019100 6,338,400 P4.00 P25,353,600.00 Total 58,613,424 1"234,453,696.00 1st importation: The first importation was on August 27, 20 19, involving 9,139,611 liters of Jet A-1 fuel, which arrived at the Tabangao Refinery private port, under the jurisdiction of the Port of Batangas. This was declared under Bureau of Customs (BOC) Single Administrative Document (SAD) with Customs Reference C 12538 and shipped through the vessel, MT Chang Hang Kai Tuo, to which petitioner paid excise taxes in the amount of P36,558,444.00.101 The importation of the said 9, 139,611liters of Jet A-1 fuel and the amount of excise taxes paid thereon are covered by the following documents, viz.: 1. Ocean Bill of Lading No. ZH19-834B dated August 19, 2019, showing the quantity of 9,139,611 liters; 102 2. Load Port Survey Report (LPSR) - Certificate No. 19082002AD dated August 20, 2019; 103 3. Customs Invoice - Bulk Product No. ITGDElOOOl' dated August 19, 2019;104 " Exhibit �'P-5", Docket- Vol. Ill, p. 1086. 95 Exhibit "P-15", Docket- Vol. Ill, p. 1099. 96 Exhibits "P-25" and "P-25-1 ", Docket- Vol. Ill, pp. 1112-1113. 97 Exhibits "P-35" and �'P-35-1", Docket- Vol. Ill, pp. 1125-1126. 98 Exhibit "P-44'', Docket- Vol. Ill, p. 1137. 99 Exhibit "P-53'', Docket- Vol. Ill, p. 1148. 100 Exhibit ''P-63'', Docket- Vol. III, p. 1162. 101 Q&A No. 42, Exhibit "P-103", Docket- Vol. I, p. 123. 102 Exhibit "P-1", Docket- Vol. Ill, p. 1081. 103 Exhibit �'P-2'', Docket- Vol. III, p. 1082. 104 Exhibit �'P-3", Docket- Vol. III, p. 1083.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 25 of65 X------------------------------------------------------------------------------------------X 4. BOC SAD with Customs Reference C 12538 dated August 20, 2019, with date stamped August 22, 2019, showing the quantity at 9,139,611 liters;1os 5. Statement of Settlement of Duties and Taxes (SSDT) - Receipt No. R17534 dated August 22, 2019;106 6. Revised SSDT- Receipt No. R22836 dated October 31, 2019; 107 7. Authority to Release Imported Goods (ATRIG) dated August 22, 2019;108 8. Certificate of Quantity Received (CQR) with date received on August 27, 2019;109 9. Tax Invoice No. 90768373/P dated September 4, 2019;110 10. Assessment Notice;111 and 11. BOC Official Receipt (OR) No. 01881234412 dated October 31, 2019. 11 2 2nd importation: The 2nd importation was for 9,935,573liters of Jet A-1 fuel, which arrived at Tabangao Refinery on September 12, 2019. This was declared under BOC SAD with Customs Reference C- 13443 and shipped via the vessel MT Silver Gwen.' Petitioner paid excise taxes thereon in the amount of P39,742,292.00. 113 The importation of the said 9,935,573liters of Jet A-1 fuel and the amount of excise taxes paid thereon are covered by the following documents, viz.: 1. Ocean Bill ofLading No. C20 190802A dated September 4, 2019, showing the quantity of 9,935,573 liters; 114 2. LPSR- Certificate No. 19090500A7 dated September 5, 2019; 115 3. Customs Invoice -Bulk Product No. ITGFME0001 dated September 4, 2019;116 4. BOC SAD with Customs Reference C 13443 dated September 5, 2019, showing the quantity at 9,935,573 liters; 117 5. SSDT- Receipt No. R18809 dated September 6, 2019; 118 105 Exhibit "P-4", Docket- Vol. lll, pp. 1084-1085. ' teo Exhibit "P-5", Docket- Vol. lll, p. 1086. 107 Exhibit �'P-5-1", Docket- Vol.lll, p. 1087. 108 Exhibit �'P-6", Docket- Vol. III, p. 1088. 109 Exhibit "P-7", Docket- Vol.lll, p. 1089. 110 Exhibit "P-8", Docket- Vol. lll, pp. I090-1092. 111 Exhibit ''P-9", Docket- Vol. Ill, p. 1093. 112 Exhibit "P-I 0", Docket- Vol. lll, p. I094. Ill Q&A No. 42, Exhibit �'P-103", Docket- Vol. I, p. 123. 114 Exhibit "P-11'", Docket�- Vol. III, p. 1095. I 15 Exhibit ''P-12'', Docket- Vol. III, p. 1096. "' Exhibit �'P-13", Docket- Vol. Ill, p. 1097. " 7 Exhibit "P-14", Docket- Vol. lll, p. 1098. 118 Exhibit "P-15", Docket- Vol. lll, pp. 1099.

DECISION CTACaseNo.l0611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 26 of65 x------------------------------------------------------------------------------------------x 6. Revised SSDT - Receipt No. R22834 dated October 31, 2019;119 7. ATRIG dated September 6, 2019;120 8. CQR with date received on September 12, 2019;121 9. Tax Invoice No. 91229630/P dated September 11, 2019;122 10. Assessment Notice;123 and 11. BOC OR No. 01881234399 dated October 31, 2019.124 3rd and 4th importations: On September 21, 20 19, petitioner received two importations of Jet A-1 fuel with 8,360,676 liters each or a total of 16,721,352 liters at the Tabangao Refinery. They were respectively declared under BOC SAD with Customs References C 13959 and C 13960, and shipped through the vessel MT Yu Yi. Petitioner paid excise taxes thereon in the amount of !>33,442,704.00 for each importation, or a total of P66,885,408.00.I25 Petitioner presented the following documents to support the 3rd importation, to wit: 1. Ocean Bill of Lading No. 19136 dated September 12, 2019, showing the quantity of 8,358,109 liters of Jet A-1 fuel; 125 2. LPSR- Control No. ATSCHN190312-A dated September 13, 2019; 127 3. Customs Invoice - Bulk Product No. ITGFME0002 dated September 13, 2019;128 4. BOC SAD with Customs Reference C 13959 dated September 16, 2019, showing the quantity at 8,358,109 liters; 129 5. SSDT - Receipt No. R 19563 dated September 17, 2019, with excise tax paid in the amount of 1"33,432,436.00; 130 6. Revised SSDT- Receipt No. R25918 dated December 10, 2019 with excise tax paid m the amount of 1"33,442,704.00; 131 7. ATRIG dated September 17, 2019;132 119 Exhibit �'P-15-1", Docket- Vol. III, p. II 00. 120 Exhibit"P-16", Docket- Vol. III, p. 1101. Ill Exhibit �'P-17", Docket- Vol. III, p. II 02. 122 Exhibit ''P-18", Docket- Vol. III, pp. II 03-1105. 123 Exhibit �'P-19", Docket- Vol. III, p. 1106. 124 Exhibit "P-20", Docket- Vol. III, p. 1107. "' Q&A No. 42, Exhibit "P-103'', Docket- Vol. I, pp. 123-124. 126 Exhibit "P-21", Docket- Vol. III, p. 1108. 127 Exhibit "P-22", Docket- Vol. III, p. 1109. m Exhibit �'P-23'', Docket- Vol. III, p. 1110. 129 Exhibit "P-24", Docket- Vol. III, p. Ill!. 130 Exhibit "P-25'', Docket- Vol. III, p. 1112. 131 Exhibit �'P-25-1", Docket- Vol. III, p. 1113. 132 Exhibit �'P-26'', Docket- Vol. Ill, p. 1114.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 27 of65 x------------------------------------------------------------------------------------------x 8. CQR with date received on September 21, 2019 for 16,721,352 liters, which also covers the 4th importation; 133 9. Tax Invoice No. 90771810/Pdated October 1, 2019;134 10. Assessment Notice;135 and 11. BOC OR No. 01881235514 dated December 10,2019. 136 For the 4th importation, the following documents were presented, viz.: 1. Ocean Bill ofLading No. 19137 dated September 12, 2019 showing the quantity of 8,358,109 liters of Jet A-1 fuel; 137 2. LPSR- Control No. ATSCHN190312-B dated September 13, 2019;138 3. Customs Invoice -Bulk Product No. ITGFME0003 dated September 13, 2019;139 4. BOC SAD with Customs Reference C 13960 dated September 16, 2019 showing the quantity at 8,358,109 liters; 140 5. SSDT- Receipt No. R19564 dated September 17, 2019 with excise tax paid in the amount of 1"33,432,436.'00; 141 6. Revised SSDT- Receipt No. R25923 dated December 10, 2019 with excise tax paid m the amount of P33,442, 704.00;142 7. ATRIG dated September 17, 2019;143 8. Tax Invoice No. 90771820/Pdated October 1, 2019;144 9. Assessment Notice;14S and 10. BOC OR No. 01881235503 dated December 10, 2019.1 46 5th importation: The 5th importation consisted of 8,418,800 liters of Jet A- 1 fuel, received at the Tabangao Refinery on October 4, 2019, and declared under BOC SAD with Customs Reference C 14694, shipped via the vessel MT Aulae Conifer. Relevant thereto, petitioner paid excise taxes in the amount ofr'33,675,200.00. 147 ( m Exhibit �'P-27", Docket- Vol. III, p. 1115. 134 Exhibit �'P-28", Docket- Vol. Ill, pp. 1116-1118. 135 Exhibit "P-29", Docket- Vol. Ill, p. 1119. 130 Exhibit "P-30", Docket- Vol. Ill, p. 1120. 137 Exhibit �'P-31", Docket- Vol. Ill, p. 1121. 138 Exhibit "P-32", Docket- Vol. Ill, p. 1122. 139 Exhibit "P-33", Docket- Vol. Ill, p. 1123. 140 Exhibit �'P-34", Docket- Vol. Ill, p. 1124. 141 Exhibit "P-35", Docket- Vol. Ill, p. 1125. 1" Exhibit �'P-35-1", Docket- Vol111. I, p. 1126. 1 4~ Exhibit "P-36.., Docket- Vol. III, p. 1127. 144 Exhibit "P-37", Docket- Vol. Ill, pp. 1128-1130. 145 Exhibit�'P-38", Docket- Vol. Ill, p. 1131. 146 Exhibit "P-39", Docket- Vol. Ill, p. 1132. 147 Q&A No. 42, Exhibit �'P-103", Docket- Vol. I, p. 124.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 28 of65 x------------------------------------------------------------------------------------------x Petitioner presented the following documents to support the 5th importation, to wit: 1. Ocean Bill of Lading No. 85569 dated September 22, 2019, showing the quantity of 8,418,800 liters of Jet A-1 fuel;148 2. LPSR- Control No. ATSSGP190338 dated September 23, 20 19;149 3. Customs Invoice -Bulk Product No. ITGFME0004 dated September 23, 2019;150 4. BOC SAD with Customs Reference C 14694 dated September 27, 2019, showing the quantity at 8,418,800 liters;151 5. SSDT- Receipt No. 20628 dated October 1, 20 19; 152 6. ATRIG dated September 30, 2019;153 7. CQR with date received on October 4, 2019;154 8. Tax Invoice No. 91231255/P dated October 14, 2019;155 and 9. Assessment Notice156 6th importation: The 6th importation was for 8,059,688liters of Jet A-1 fuel that was received at the Tabangao Refinery on November 10, 2019, and declared under BOC SAD with Customs Reference C16783 and shipped through the vessel MT Silver Millie, to which petitioner paid exctse taxes m the amount of !'32,238, 752.00.157 Petitioner presented the following documents to support the 6th importation, to wit: 1. Ocean Bill of Lading No. HL2019JET052-1 showing the quantity of 8,059,688 liters of Jet A-1 fuel; 158 2. LPSR Control No. ATSCHN190377 dated November 5, 20 19;159 3. Customs Invoice - Bulk Product No. ITHEDK0001 dated November 5, 2019;160 148 Exhibit "P-40'', Docket- Vol. Ill. p. 1133. 149 Exhibit �'P-41 ,. , Docket- Vol. III, p. 1134. 15� Exhibit �'P-42'', Docket- Vol.lll, p. 1135. 151 Exhibit "P-43", Docket- Vol. Ill, p. 1136. 152 Exhibit "P-44", Docket- Vol. 111, p. 1137. 153 Exhibit"P-45", Docket- Vo1.111, p. 1138. 154 Exhibit "P-46", Docket- Vol. 111, p. 1139. 155 Exhibit "P-47", Docket- Vol. 111, pp. 1140--1142. 1 ~/i Exhibit "P-48.., Docket- Vol. III, p. 1143. 157 Q&A No. 42, Exhibit �'P-103", Docket- Vol. I, p. 124. 1" Exhibit "P-49", Docket- Vol. Ill, p. 1144. 159 Exhibit''P-50'', Docket- Vol. III, p. 1145. 1'' Exhibit �'P-51 ", Docket- Vol. 111, p. 1146.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue x------------------------------------------------------------------------------------------x 4. BOC SAD with Customs Reference C 16783 dated November 6, 2019, showing the quantity at 8,059,688 liters; 161 5. SSDT- Receipt No. R23495 dated November 8, 2019;162 6. Revised SSDT- Receipt No. R27097 dated December 27, 2019;163 7. ATRIG dated November 11, 2019;164 8. CQR with date received on November 10, 2019;165 9. Tax Invoice No. 91233223/Pdated November 25, 2019;166 10. Assessment Notice;167 and 11. BOC OR No. 01881235727 dated December 27,2019.168 '7th importation: Lastly, petitioner imported 6,338,400 liters of Jet A-1 fuel, which was received at the Tabangao Import Facility on December 27, 2019, and declared under BOC SAD with Customs Reference Cl9072, shipped on the vessel MT Beluga Pacific. !69 It paid excise taxes in the amount of P25,353,600.00,17� and presented the following documents to support the 7th importation, viz.: 1. Ocean Bill ofLading No. 86364 dated December 19, 2019, showing the quantity 6,338,400 liters of Jet A-1 fuel;1 71 2. LPSR - Reference No. PHI-010676 / Partial 01 dated December 19, 2019;172 3. Customs Invoice- Bulk Product No. ITKFEM0001 dated December 19, 2019;173 4. BOC SAD with Customs Reference C 19072 dated December 20, 2019, showing the quantity at 6,338,400 liters; 174 5. SSDT- Receipt No. R26697 dated December 23, 2019; 175 6. Revised SSDT - Receipt No. R2706 dated February 5, 2020;176 7. ATRIG dated December 23, 2019;177 8. CQR with date received on December 27, 2019;178 161 Exhibit "P-52", Docket- Vol. Ill, p. 1147. 162 Exhibit "P-53", Docket- Vol. 111, p. 1148. 162 Exhibit"P-53-1", Docket-Vol.lll, p. 1149. 164 Exhibit "P-54", Docket- Vo1.111, p. 1150. 165 Exhibit"P-55'', Docket- VoL 111, p. 1151. 166 Exhibit "P-56'', Docket- Vo1.111, pp. 1152-1154. 167 Exhibit "P-57", Docket- Vol. Ill, p. 1155. 168 Exhibit "P-58", Docket- VoL Ill, p. 1156. 169 Exhibit �'P-62", Docket- Vol. Ill, p. 1161. 17o Exhibits �'P-63" and '�P-63-1 ", Docket- Vol. 111, pp. 1162-1163. 171 Exhibit �'P-59", Docket- Vol. 111, p. 1157. 172 Exhibit �'P-60", Docket- Vol.111, pp. 1158-1159. 173 Exhibit "P-61 ", Docket- Vol. 111, p. 1160. 174 Exhibit �'P-62", Docket- Vol. III, p. 1161. 175 Exhibit '�P-63", Docket- Vol. 111, p. 1162. 176 Exhibit �'P-63-1 ", Docket- VoL 111, p. 1163. 177 Exhibit "P-64", Docket- Vol. 111, p. 1164. ns Exhibit �'P-65'', Docket- Vol. Ill, p. 1165.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 30 of65 X------------------------------------------------------------------------------------------X 9. Provisional Tax Invoice No. 91235308/P dated January 8, 2020; 1?9 10. Assessment Notice;1so and 11. BOC OR No. 01881236469 dated February 5, 2020.181 Petitioner partially established that it erroneously paid excise taxes on imported and locally manufactured Jet A-1 fuel sold to tax-exempt international air carriers. For the period from September 3 to October 24, 2019, petitioner allegedly sold excise tax-paid Jet A-1 fuel from its 1st to 4th importations (previously discussed) to various international air carriers for use or consumption outside the Philippines, as follows: 1s2 Customer Country of Registry ' Total Volume in 1 Cebu Air Inc Philippines China Liters 2 China Airlines Ltd Philippines 4,146,032 PhiliPPines 1,292,851 3 PhiliPPine Airlines Inc 17,793,165 Singapore 2,256,484 4 PhiliPPines Airasia Inc China Papua New Guinea 509,719 5 Silkair Singapore Private Malavsia 603,850 Limited Malavsia 480,106 Korea 809,734 6 Air China Ltd United States of America 43,609 7 Air Niucini Ltd China 1,166,545 8 Airasia Berhad China 121,660 United States of 647,680 9 Airasia X Berhad America Singapore 1,390,963 10 Asiana Airlines Inc Netherlands ' Singapore 11 Atlas Air Inc Singapore 264,917 China 221,155 12 China Eastern Airlines Co Ltd 1,953 13 China Southern Airlines Co 55,078 Ltd 65,136 504,703 14 Federal ExPress Com 15 Jetstar Asia Airwavs Pte Ltd 16 Shell Aircraft Ltd 17 Scoot Tigerair Pte Ltd 18 Tigerair Taiwan Co Ltd 19 Xiamen Airline Co Ltd "' Exhibit "P-66", Docket- Vol. III, pp. 1166-1168. 180 Exhibit"P-67", Docket- Vol. III, p. 1169. '"' Exhibit �'P-68", Docket- Vol. Ill, p. 1170. 182 Docket- Vol. III, pp. 1713-1714, Memorandum for Petitioner, par. 34.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X Total Aviation Sales 32,375,340 _(in liters) I 1"4.00 Pl29,501,360.00 Excise Tax Rate TOTAL EXCISE TAX Further, from October 13, 2019 to January 19, 2020, petitioner allegedly sold the aforementioned excise tax-paid Jet A-1 fuel from its 5th to 7th importations to various international air carriers for use or consumption outside the Philippines, as follows: 183 Customer Country of Registry Total Volume in Liters 1 Cebu Air Inc Philippines 2,784,076 2 China Airlines Ltd China 763,449 3 Philippine Airlines Inc Philippines 11,568,627 4 Philippines Airasia Inc Philippines 1,525,452 5 Silkair Singapore Private Singapore 604,155 Limited China 509,274 6 Air China Ltd Papua New Guinea 255,434 7 Air Niugini Ltd Malaysia 520,063 8 Airasia Berhad Korea 971,015 9 Asiana Airlines Inc United States of 10 America 37,760 China 445,231 Atlas Air Inc. 11 China Eastern Airlines Co Ltd China 844,966 12 China Southern Airlines Co Germany 80,000 United States of Ltd America 109,741 13 Eurowings GMBH Singapore 235,472 14 Singapore 178,325 Singapore Federal Express Corp China 50,374 15 Jetstar Asia Airways Pte Ltd 406,233 16 Scoot Tigerair Pte Ltd 17 Tigerair Taiwan Co Ltd 21,889,647 18 Xiamen Airline Co Ltd f'4.00 Total Aviation Sales P87 ,558,588.00 (in liters) ' Excise Tax Rate TOTAL EXCISE TAX The sale of locally manufactured Jet A-1 fuel to airlines for use or consumption internationally is as follows: 184 Customer Country of Registry Total Volume in Liters 1 Cebu Air Inc Philippines 1,071,320 2 Philippine Airlines Inc PhiliiJIJines 1,459,900 183 /d. at 1714, Memorandum for Petitioner, par. 35. 184 !d. at 1714-1715, A1emorandumfor Petitioner, par. 36.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 32 of65 X------------------------------------------------------------------------------------------X 3 Silkair Singapore Private Singapore 807,122 Limited Singapore 160,592 Singapore 4 Scoot Tigerair Pte Ltd 70,744 5 Tigerair Taiwan Co Ltd 3,569,678 Total Aviation Sales 1"4.00 (in liters) P14,278,712.00 Excise Tax Rate TOTAL EXCISE TAX Alleging that the international air carriers to which it sold imported Jet A-1 fuel are exempt from excise taxes under Section 135(a) of the NIRC of 1997, as amended, petitioner seeks a refund of the excise taxes paid in the aggregate amount of I>231 ,338,660.00.185 For the aforesaid sales of 57,834,665186 liters of imported and locally manufactured Jet A-1 to international air carriers be exempted from excise tax under Section 135(a) of the NIRC of 1997, as amended, petitioner must present the following: 1. Proof that the imported and locally manufactured Jet A-1 fuel sold to international air carriers was stored in a bonded storage tank, and had been disposed of in accordance with the rules and regulations; 2. Proof of foreign registry of the international rur carriers, or in case of Philippine-registered air carriers, the latter's proof of authority to operate international flights; and 3. Proof that the imported and locally manufactured Jet A-1 fuel was used or consumed outside the Philippines. First reQuirement: Proof that the imported and locally manufactured Jet A-1 fuel sold to international air carriers was stored in a bonded storage tank and had been disposed of in accordance with the rules and regulations. 185 Sum ofTotal Excise Taxes (1'129,501,360.00 + 1'87,558,588.00 + 1'14,278,712.00). 186 Sum ofTotal Aviation Sales (32,375,340 + 21,889,647 + 3.569,678).

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue x------------------------------------------------------------------------------------------x Petitioner partially complied with the first requirement. In their respective Judicial Affidavits, Ms. Vergel De Dios, 187 petitioner's Import/ Additives Scheduler, Mr.' Aquiatan, Jr., 188 petitioner's Operations Manager, Ms. Flores, 189 petitioner's Tax Advisor, and Mr. Juanillo, 190 petitioner's Terminal Operations Manager at Tabangao Depot, explained the process and documentation of the receipts and withdrawals of imported Jet A-1 fuel at petitioner's storage tanks in Tabangao Refinery through the Tabangao Depot and its subsequent delivery to the Joint Oil Company Aviation Storage Plant (JOCASP) at the Ninoy Aquino International Airport in Manila, the Clark Aviation Services, Inc. (CASI) facility in the Clark International Airport in Pampanga, and storage facility leased from Total Oil and Gas Resources, Inc. (TOGRI), formerly the Total Bulk Corporation, near the Mactan Cebu International Airport in Mandaue, Cebu for eventual sale to international earners. Ms. Vergel De Dios explained that upon the arrival of vessels carrying imported Jet A-1 fuel in Philippine ports, petitioner presents the SSDT to the port authorities, who then allow the discharge of the imported Jet A-1 fuel into the tanks at Tabangao Refinery.191 The imported Jet A-1 fuel, stored in product tanks, is then withdrawn from the Tabangao Refinery and delivered to intermediate storage facilities in the JOCASP, CASI, and TOGRI. Deliveries to JOCASP and CASI are processed through the Tabangao Depot, while deliveries to TOGRI are made directly from the Tabangao Refinery. The Jet A-1 fuel delivered to JOCASP, CASI, or TOGRI is eventually sold and delivered to international air carriers refueling at international airports. 192 The importation, as well as the withdrawals, of Jet A-1 fuel in the Tabangao Refinery are recorded and summarized in the Official Register Book (ORB), which is jointly signed by an authorized representative of the petitioner and the Revenue Officer on Premises (ROOP). The ORB indicates the "receipts" and "removals" of Jet A-1 fuel for a certain period, the running 187 Exhibit "P-I 03", Docket- Vol. I, pp. 114--132. 188 Exhibit ''P-104��, Docket- Vol. I, pp. 231-245. 189 Exhibit ''P-119", Docket- Vol. I, pp. 365-378. 190 Exhibit "P-118", Docket- Vol. 11, pp. 356--361. 1�1 Q&A No. 33, Exhibit �'P-103", Docket- Vol. I, p. 121 192 Q&A No. 44, Exhibit "P-I 03", Docket- Vol. L p. 129.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 34 of65 X------------------------------------------------------------------------------------------X balance of stored Jet A-1 fuel, and the production of local Jet A-1 fuel for that period.l93 Ms. Flores testified that the ORB indicates, among others, the source of the Jet A-1 fuel. Locally manufactured Jet A-1 fuels are identified as "Production" while imported Jet A-1 fuels are indicated under "Receipts Import". In its withdrawals of Jet A-1 fuel from the storage tanks, petitioner adopts a first-in, first-out (FIFO) method.l94 The withdrawals from the Tabangao Refinery are also covered by Wes, which indicate the destination of the fuel. Jet A-1 fuel destined for JOeASP and eASI first passes through Tabangao Depot, while Jet A-1 fuel destined for TOGRI is delivered directly from the Tabangao Refinery. Hence, the wes of Jet A-1 fuel destined for JOeASP and eASI coming from the Tabangao Refinery indicate Tabangao Depot as "Destination", while the wes for deliveries to TOGRI indicate "Total Bulk, eebu" as "Destination" _195 If the Jet A-1 fuel to be withdrawn from the refinery is imported, then the We, which is noted as "Tax Paid," means that the excise tax on the imported Jet A-1 fuel was already paid to the BOe. Since this we covers the withdrawal or removal of imported Jet A-1 fuel, the we indicates that the fuel covered thereby is "Tax Paid".l96 As for the payment of excise tax related to� locally manufactured Jet A-1 fuel, Ms. Flores explains that prior to withdrawal of locally manufactured petroleum products, including Jet A-1 fuel, petitioner files an Excise Tax Return under which it pays for its excise tax liability for the petroleum products withdrawn by applying the advance payment previously made. The excise tax liability paid through the application of advance payments is supported by the corresponding Daily Product Deliveries Reports (DPDR) as of the time of filing of the Excise Tax Return.l97 She also claims that the imported Jet A-1 fuel is stored in storage tanks located at JOeASP, eASI, or TOGRI to await sale and delivery to international carriers. Jet A-1 fuel is eventually delivered to international air carriers via a specialized vehicle 191 Q&A No. 45, Exhibit "P-103", Docket- Vol. I, p. 129. 194 Q&A No. 25, Exhibit "P-119', Docket- Vol. I, p. 371. 195 Q&A No. 45, Exhibit "P-103", Docket- Vol. I, pp. 129-130. 196 Q&A No. 48, Exhibit �'P-1 03", Docket- Vol. I, p. 130. 197 Q&A No. I7, Exhibit "P-119', Docket- Vol. I, p. 369.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 35 of65 X------------------------------------------------------------------------------------------X that pumps the Jet A-1 fuel directly into the air carrier's tank. The specialized vehicle is equipped with a meter that determines the volume of Jet A-1 fuel delivered to the customer.l98 Upon removal of the imported Jet A-1 fuel from the Tabangao Refinery through the Tabangao Depot for deliveries to JOCASP and CASI or directly from the Tabangao Refinery for deliveries to TOGRI, the Jet A-1 fuel is accompanied by a Bulk Delivery Note, which provides the date of the transfer of the imported Jet A-1 fuel, its volume, its source, and its destination.! 99 Furthermore, the sales and deliveries of imported Jet A-1 fuel to international air carriers are supported by Aviation Service Returns (ASRs) and petitioner's invoices. In an ASR, the customer acknowledges the receipt from petitioner of a particular volume of Jet A-1 fuel. On the other hand, the petitioner's Invoice indicates the quantity, unit price, any other charges, and the total amount due for the Jet A-1 fuel sold and delivered to the customer. 2oo The ASR is either printed through the Data Capture System (DCS) used by petitioner or manually prepared when the system is down. With the DCS, the details of the delivery are immediately captured by petitioner's computer system, enabling it to generate a report daily. A Monthly Supplier Sales Report may be generated by the DCS to summarize the daily deliveries to air carrier customers. It indicates the ASR number and date, the customer, the aircraft registration number, the volume of Jet A-1 fuel delivered to that customer, the aircraft's destination, and the invoice number and date. A Daily Product Movement Report Subject to Excise Tax Claim is also prepared, which is the summary of all transactions for the day, including receipts from the Tabangao Refinery.2o1 As may be gleaned from respondent's denial letter, 2�2 respondent stood by his decision to deny petitioner's. claim due to the latter's failure to comply with the mandatory requirements prescribed under the provisions of the pertinent laws and regulations, as follows: 198 Q&A No. 27, Exhibit "P-119.., Docket-- Vol. I, p. 372. 199 Q&A No. 18, Exhibit �'P-119", Docket- Vol. I, p. 369. 200 Q&A No. 28, Exhibit ��p_ I I9'', Docket- Vol. I, p. 372. 200 Q&A No. 21, Exhibit �'P-104", Docket- Vol. 1, pp. 237-238. 202 Exhibit �'R-3", BlR Records (Exhibit "R-4")- Folder I of 4, pp. 781-782.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 36 of65 X------------------------------------------------------------------------------------------X Moreover, you likewise failed to strictly comply with the mandatory requirements regarding the issuance of Withdrawal Certificates (WCs) laid down under the provisions of Revenue Regulations (RR) No. 13-77 dated 10 October 1997, as amended, Revenue Memorandum Circular (RMC) No. 50-2014 dated 9 June 2014, RMC No. 23-2015 dated 16 February 2015 and Revenue Regulations (RR) No. 18-2012 dated 22 October 2012 considering that: a. The WCs you submitted failed to provide the following information or entries a.l. Carrier/Truck Number (the Company just indicated in the 'Carrier' portion thereof the phrase 'Various Lorries'); a.2. Whether Product is Bonded, Tax Exempt or Tax Paid under the 'Remarks' Portion; and a.3. the Official Receipt No., Amount and Date of Payment (since the products are imported); b. The WCs only pertained to transfer of the Jet A-1 from Customs to the Tabangao Depot but no WCs were issued for: b.1. The series of transfers of the Jet A-1 fuel from the Company's Tabangao Depot to the Joint Oil Companies Aviation Fuel Storage Plant (JOCASP) and b.2. Sales of the Jet A-1 from the Company to the end-users, 1.e., international carriers; and c. The series of transfers of the Jet A-1 from the Company's Tabangao Depot to the JOCASP are merely supported by Bulk Delivery Notes which are not registered with the Bureau. The Court agrees with respondent. We find the following pieces of evidence submitted by petitioner compliant with the requirements provided by law and its implementing rules and regulations: 1. ORBs;2o3 2. Daily Removal Monitoring;204 3. Daily Stock/Product Movement Report or Stock Monitoring & Liquidation Report;2o5 4. WCs;2o6 5. Delivery Notes;207 i 6. Sales Invoices;2os 7. ASRs;209 and 2o1 Exhibits "P�I 09-1 a" to �'P-I 09-13a"; "P-I 09-1 c" to "P-I 09-13c; "P-I 09-1 d" to "P-109-13d", USB (Exhibit "P-124- 2"). 204 Exhibits "P-I 09-1 b" to "P-I 09-13b", USB (Exhibit ''P-124-2"). 205 Exhibits "P-110-la" to "P-110-396a.., USI3 (Exhibit "P-124-2"). 206 Exhibits �'P-I 05-1 c" to "P-I 05-71 c", USB (Exhibit �'P-124-2"). 2o2 Exhibits "P-I 06-1 a" to "P-I 06-1470a", USB (Exhibit �'P-124-2"). 2os Exhibits "P-107-Ia" to "P-107-433a", USB (Exhibit �'P-124-2"). 2o9 Exhibits �'P-106-Ib" to �'P-106-3397b", USB (Exhibit �'P-124-2").

DECISION CTACaseNo. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 37 of65 X------------------------------------------------------------------------------------------X 8. Printouts of petitioner's Global System Application Product System showing "Overview of Billing Items" and "Pricing Details" (F4 Display Printouts)21o Additionally, since the ORBs were duly signed jointly by an authorized representative of petitioner and ROOP, the ORBs are sufficient supporting documents of transfers from Tabangao Depot to JOCASP and CASI. However, upon scrutiny of the ORBs submitted, the Court found that the Mandaue ORBs for September 2019, January 2020, and August 2020 do not carry the signature of the ROOP. 211 In justifying the non-presentation of the original copies of the subject ORBs covering the sales of Jet A-1 fuel to international air carriers from TOGRI for September 2019 and from January 2020 to August 2020, Ms. Flores explains that the original copies of the same had been lost because of the flood brought about by super typhoon Odette and, as such, petitioner was only able to retrieve the soft copies of excel sheets containing the figures and information of the lost ORBs. 21 2 Considering that the receipts and removals of Jet A-1 fuel at Tabangao Refinery, Pandacan installation, JOCASP, and CASI are indicated in the ORBs prepared by both the ROOP and petitioner's representative,21 3 petitioner should have presented any proof showing the concurrence of the ROOP who signed the same or should have obtained certified true copies of the ORBs from the BIR where the same are being filed so that the Court can verify petitioner's allegations relating to the information reflected in the said ORBs. Due to such failure, the Court cannot rely on the submitted ORBs in the present case. Consequently, We have no recourse but to disallow the ORBs covering the sales of Jet A-1 fuel to international air carriers from TOGRI for September 2019 and from January 2020 to August 2020. From the foregoing, petitioner proved its compliance with the first requirement but only up to the extent of sales made from JOCASP and CASI and sales from TOGRI, and only for August 2019 and October to December 2019. 21 0 Exhibits ��p.JQ7.Jb" to "P.J07�3397b", USB (Exhibit ��p.J24�2"). 211 Exhibits "P�I Q9.2d" and ��p.J 09�6d" to "P�I 09�13d", USB (Exhibit "P�l24�2"). 21 2 Q&A Nos. 10 and 14, Exhibit ''P�120", Docket- Vol. II. pp. 959-960. 213 Summary of Annexes and Exhibits, Exhibit ''P-124", p. 23.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of lnternal Revenue Page 38 of65 X------------------------------------------------------------------------------------------X Second requirement: Proof of foreign registry for international air carriers, or, in the case of Philippine-registered air carriers, proof of authority to operate international flights. To prove its compliance with the second requirement, petitioner presented the letter certification from the Civil Aviation Authority of the Philippines (CAAP) dated February 22, 2022, 214 which confirms the countries of registration of the international air carriers, whom petitioner allegedly sold and delivered Jet A-1 fuel subject of the present claim, based on the aircraft registration code as provided by such international air carrier and as appearing in the ASRs. Petitioner likewise presented Certification from the Civil Aeronautics Board (CAB) dated July 30, 2021,2 15 showing that the international air carriers of foreign registry listed therein have been issued Foreign Air Carrier's Permit (FACP) and are authorized to operate international flights only for a period covering, but are not limited to, the years 2019 to 2020. Meanwhile, as regards to the Philippine-registered air carriers, the same Certification indicates that: 1) Philippine Airlines, Inc. has been granted a Franchise Permit through Presidential Degree No. 1590 to operate and maintain air transportation services in the Philippines and between the Philippines and other countries, and that the said Franchise Permit authorizes the said airline to operate international flights from June 11, 1978 to present, including the years 2019 and 2020; 2) Cebu Air, Inc. has been granted a franchise permit through Republic Act No. 7151 (R.A. 7151), which was approved on August 30, 1991, to operate and maintain air transport services in the Philippines and between the Philippines and other countries, and that the said Franchise Permit authorizes Cebu Air, Inc. to operate v international flights from the date of effectivity of 214 Exhibit "P-99-1 ", Docket- Vol. Ill, pp. 1396-142 I. 215 Exhibit "P-102", Docket- Vol. Ill, p. !583.

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 39 of65 x------------------------------------------------------------------------------------------x R.A. 7151 to present, including the years 2019 arid 2020; arid 3) Philippines AirAsia Inc., through its predecessor Asiari Spirit Inc., has been granted a franchise through Republic Act No. 9183 (R.A. 9183), which was approved on Jariuary 09, 2003, to operate arid maintain air trarisport services in the Philippines arid between the Philippines arid other countries, arid that the said Frarichise Permit authorizes Philippines AirAsia to operate international flights in the years 2019 arid 2020. Summarized below are the international air carriers, with their respective countries of registration based on the CAAP certification arid with the FACPs to operate international flights based on CAB Certification: Listed on International Certification Aircraft Registration No. Country of issued by Registration No. Airlines Republic of Korea CAB CAAP China Papua New I Air 8usan Co., Ltd. Yes Yes HL8055 ' Guinea 81909, 85!67, 85170,85179,85236,85312,85326, Malaysia 85328,85901,85906,85912,85913,85916,85919, Malaysia 85946,85947,85948,85956,85957,85977,85978, Republic of Korea USA 86075,86076,86080,86091,86092,86101,86113, 2 Air China Ltd. Yes Yes 86117,86503,88383,88385,88386,88579,88689 3 Air Niugini Ltd. Yes Yes P2PXC, P2PXD, P2PXV,P2PXVV 9MAF8, 9MAFC, 9MAFD, 9MAFE, 9MAFF, 9MAFV, 9MAGA, 9MAG8, 9MAGC, 9MAGD, 9MAGE, 9MAGF, 9MAGG, 9MAGH, 9MAGI, 9MAGJ, 9MAGK, 9MAGL, 9MAGM, 9MAGN, 9MAGO, 9MAGP, 9MAGR, 9MAGS, 9MAGT, 9MAGU, 9MAGW, 9MAGX, 9MAGY, 9MAGZ, 9MAHE, 9MAHL, 9MAHS, 9MAHV, 9MAHX, 9MAHY, 9MAHZ, 9MAIP, 9MAJA, 9MAJC, 9MAJD, 9MAJE, 9MAJG, 9MAJH, 9MAJI, 9MAJJ, 9MAJK, 9MAJN, 9MAJP, 9MAJS, 9MAJT, 9MAJW, 9MAJX, 9MAJY, 9MAJZ, 9MAQA, 9MAQ8, 9MAQC, 9MAQF, 9MAQH, 9MAQM, 9MAQN, 9MAQO, 9MAQP, 9MAQQ, 9MAQS, 9MAQZ, 9MNEO, 9MRAA, 9MRA8, 9MRAC, 9MRAD, 9MRAE, 9MRAG, 9MRAH, 9MRAI, 9MRAJ, 9MRAK, 9MRAL, 9MRAM, 9MRAO, 9MRAP, 9MRAQ, 9MRAR, 9MRAT, 9MVAA, 9MVA8, 9MVAD, 9VAJG, AK585, 4 Airasia Berhad Yes Yes RPC8946 5 AirAsia X Berhad No Yes 9MX8E, 9MXXA, 9MXXI, 9MXXP Asiana Airlines, 6 Inc. HL7413, HL7415, HL7417, HL7418, HL7428, HL7S79, 7 Atlas Air Inc. HL7625, HL7626, HL7732, HL7736, HL7739, HL7740, HL774l, HL7746, HL7747, HL7754, HL7755, HL7756, HL7775, HL779l, HL7793, HL7794, HL8254, HL8258, Yes Yes HL8259, HL8284, HL8286, HL8293, HL8362 N408MC, N412MC, N477MC, N493MC, N64!GT, No Yes N645GT

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 40 of65 x------------------------------------------------------------------------------------------x International Listed on Aircraft Registration No. Country of Certification Registration No. Airlines RPC3287, RPC3228, RPC3231, RPC3233, RPC3237, Philippines issued by RPC3238, RPC3239, RPC3249, RPC3250, RPC3260, China 8 Cebu Air Inc. CAB CAAP RPC3261,RPC3262,RPC3263,RPC3264, RPC3265, 9 China Airlines Ltd. RPC3266,RPC3267,RPC3268,RPC3272,RPC3273, China Yes Yes RPC3274, RPC3275, RPC3276, RPC3277, RPC3278, China Eastern RPC3279, RPC3281, RPC3287, RPC3341, RPC3342, China 10 Airlines Co. Ltd. Yes Yes RPC3343,RPC3344,RPC3345,RPC3346,RPC3347, RPC3348,RPC4100,RPC4101,RPC4102,RPC4103, China Southern Yes Yes RPC4104,RPC4105,RPC4106, RPC4108,RPC4109, II Airlines Co. Ltd. RPC4110,RPC4111,RPC4112,RPC4113,RPC4114, Yes Yes RPC4115,RPC4116,RPC4117,RPC4118,RPC4119, Deutsche RPC4120,RPC4121,RPC4122 12 Lufthansa AG B-18708, 815358,818210,818301, B18302,BI8303, 13 Eurowings GMBH 818305,818306,818307,818308,818309,818310, 818311,818315,818316,818317,818351,818352,. Federal Express 818353,818355,818356, B18357,BI8358, 818359, 818360,818361,818610, BI8612,B18615, 818617, 14 Corp. 818622,8186507,818651,818652,818653,818655, 818656, 818657,BI8658,818659,B18660, 818661, Federal Express 818662, B18663,BI8665,818666,BI8667, 818701, 818706,818707, 818708,BI8709,BI8711, 818712, 15 Corp. 818715, B18716,B18717,BI8718, 818719,818720, 818721,818722, BI8723,BI8725, 88655 BI033,BI049, BI066,BI073,BI211, 81607,81615, B1640,BI679,BI680,BI835,B1860,BI861, 82207, B2208,B2290,B2335,B2336,B2337,B2338,B2413, B2419,B300P,B300Q,B300R,B3026,B302G,B303E, B304C, B304P, 85906,85920, B5926,B5930,B5931, 85938, 85941, 85942, 85943, 85952, 85961, B5?68, 85976,86001,86002, 86003,B6008,B6009,B6010, 86012,86370,86506,86507,86537,86538,86545, 86559, B6586, 86587,86591, B6592,B6616, 86617, 86642,86668, B6716,B6753, 86755,86802,86831, B6870,B6886, B6925,B6926,B6927, 86951,88172, B8230,B8231,B8276,B8406,B8566, 88571,88572, 88573,88575,88576,88650,88652,88653,88862, 88863,88967,88968,88970,88971,88972,89900, 89906, 89946, 89947, 89972 81062, 81123, 81128, 81168, 81169, Bl242, 81293, 81297, 81402, 81403, 81411, 81413, 81525, 81585, 81700,81701,81736,81737,81749,81781, 818358,B1916,B1917,BI925,BI950,81952, BI979,8209D,8209X,820AA,820CJ,B2693,B2694, 82695,82696,82697, B2725,B2726,B2727,B2732, 82733,82735,82736,82737,82787,82788,85041, 85042,85067,85147,85149,85189,85191,85192, 85195,85300,85340,85356,85445,85446,85586, B5598,B5609, B5675,B5677,B5678, B5698, 85715, B574!,85745,85749,B5760,85917, 85922,85928, 85939, B5940, 85951,86086,86087,86135,86502, 86515,86516,86526, B6528,86531,B6532,86542, 86547,86548,88358,88360,88363,88365,88426, 88870 No Yes D-ABYK, DAIGW, DAIGY, DAIHB, DAIML, DAIXM ' Germany Germany No Yes DAXGD Yes Yes 818667, 818716, 8884FD China NIOIFE,N102FE,NI03FD,NI03FE,N104FE, NI06FE,N107FE,N108FE,N121FE,NI32FE, NI94FD,N410FE,N522FE,N529FE,N574FE, N588FE,N589FE,N597FE,N598FE,N603FE,N605FE, N608FE,N613FE,N617FE,N618FE,N619FE,N642FE, N643FE,N844FD,N850FD,N854FD,N855FD, N856FD,N858FD,N859FD,N861FD,N863FD, Yes Yes N865FD,N866FD,N868FD,N869FD,N876FD, USA

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X Listed on International Certification Aircraft Registration No. Country of issued bv Registration No. Airlines CAB CAAP N882FD,N885FD,N891FD,N892FD,N893FD, N895FD,N897FD,N914FD,N914FE,N918FD, N919FD,N919FE,N924FD,N946FD,N947FD, N948FD ' Hong Kong Airlines 16 Limited Yes Yes 8LHR,8LNL,8LNN,8LNP China 9VJJH, 9VJSA, 9VJSF, 9VJSH, 9VJSI, 9VJSJ, 9VJSK, Jetstar Asia 9VJSL,9VJSM,9VJSN,9VJS0,9VJSP,9VJSQ, Yes 9VJSR,9VJSS,9VJSU,9VJSV,9VJSW 17 Airwavs Pte. Ltd. Yes Zambia 9MMLH, 9MMSG, 9MMT8, 9MMTC, 9MMTD, 9MMTF, Malaysia Airlines 9MMTG, 9MMTI, 9MMTM, 9MMUA, 9MMU8, 9MMUD, 18 8erhad Yes Yes 9MMXA, 9MMXL, 9MMXO, 9MMXW, 9MMXY Malaysia Malinda Airways 19 S8N 8HD No Yes 9MLNL Malaysia Philippines Philippine Airlines RP-C8760, RPC124, RPC3278, RPC3501, RPC3503, RPC3504, RPC3506,RPC3507,RPC3508,RPC7772, 20 Inc. Yes RPC7773, RPC7774, RPC7775, RPC7776, RPC7777, RPC7778, RPC7779, RPC7781, RPC7782, RPC8613, RPC8619, RPC8620, RPC8760, RPC8762, RPC8763, RPC8764, RPC8765, RPC8766, RPC8771, RPC8780, RPC8781,RPC8782,RPC8783,RPC8784,RPC8785, RPC8786, RPC8789, RPC8980, RPC9901, RPC9902, RPC9903, RPC9905, RPC9906, RPC9907, RPC9909, RPC9912,RPC9914,RPC9915,RPC9916,RPC9917, RPC9918, RPC9919,RPC9925,RPC9926,RPC9928, RPC9929, RPC9930, RPC9932, RPC9933, RPC9934, RPC9935, RPC9936, RPC9937, RPC9938, RPC9912, RPC3227,RPC3228,RPC3504,RPC8189,RPC8641, RPC8896, RPC8940, RPC8941, RPC8946, RPC8948, RPC8949, RPC8950, RPC8963, RPC8964, RPC8965, RPC8966, RPC8967, RPC8970, RPC8971, RPC8972, RPC8974, RPC8975,RPC8976,RPC8977,RPC8978, Yes RPC8979, RPC8986,RPC9948 PT Indonesia 21 AirAsia No Yes PKAZD,PKAZG Indonesia 9VTAN, 9VTAO, 9VTAQ, 9VTAU, 9VTAV, 9VTAX, Singapore Scoot TigerAir PTE 9VTAZ, 9VTRC, 9VTRD, 9VTRE, 9VTRH, 9VTRI, 9VTRK, 9VTRL, 9VTRM, 9VTRN, 9VTRO, 9VTRP, 22 Ltd. No 9VTRQ,9VTRR,9VTRS,9VTRT,9VTRU,9VTRV, Yes 9VTRW, 9VTRX Shell Aircraft 23 Limited No Yes VQ8XD,V08XG,V08XH Bermuda 9VMGA, 9VMG8, 9VMGC, 9VMGD, 9VMGE, 9VMGF, 9VMGG, 9VMGH, 9VMG!, 9VMGJ, 9VMGK, 9VMGL, Silkair Singapore 9VMGM, 9VMGN, 9VMGO, 9VMGP, 9VMGQ, 9VMGU, 24 Private Limited Yes Yes 9VSLL, 9VSLM, 9VSLO, 9VSLP, 9VSLO, 9VSLR, 9VSLS Singapore Thai Airasia 25 Comnanv Ltd. Yes Yes HSEAA,HSEA8 Thailand 850001, 850003, 850005, 850006, 850007, 850008, TigerAir Taiwan Co. 85001,850011,850015,850016,850017,8500\8, 26 Ltd. No Yes 855008 China Varance Air RPC2283, RPC8150, RPC8330, RPC8450, RPC8488, Yes RPC900 27 Corporation No Philippines EC-MDS, ECKXN, ECMDS, ECMJS, ECMNY, ECMQK, 28 Wamos Air No Yes ECMRM, ECN8N Spain

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner oflnternal Revenue Page 42 of65 x------------------------------------------------------------------------------------------x International Listed on Aircraft Registration No. Country of Certification Registration No. Airlines 81352, 81356, 81357, 81566, 81567, 81706, 81707, issued bv 81708,81709,81749,81911,81912,81913,81915, China CAB CAAP 81964,81966,81969,81970,81971,82760,82762, 82763, 82769, 85151, 85152, 85160, 85161, 85162, Xiamen Airline Co. Yes Yes 85167,85216,85218, 85219,85278,85279,85~80, 29 Ltd. 85301,85302,85303,85305,85306,85307,85308, 85355,85382,85383,85385,85386,85388,85435, 85458,85476,85487,85488,85489,85528,85529, 85532,85533,85535,85565,85595,85601,85602, 85603, 85605, 85630, 85631, 85632, 85633, 85635, 85653,85656,85657,85658,85659,85688,85706, 85707,85750,85751,85752,85788,85789,85790, 85791,85792,85845,85847,86482,86483,86485, 86487,86488,86489,86490,87836,87838,87846, 87849 Based on the foregoing, the following airlines not listed in the Certification issued by CAB are not authorized to operate international flights: 1. AirAsia X Berhad; 2. Atlas Air Inc; 3. Deutsche Lufthansa AG; 4. Eurowings GMBH; 5. Malinda Airways SBN BHD; 6. PT Indonesia AirAsia; 7. Scoot TigerAir PTE Ltd.; 8. Shell Aircraft Limited; 9. TigerAir Taiwan Co. Ltd.; 10. Varance Air Corporation; and 11. Wamos Air. Thus, any excise taxes paid on imported and� locally manufactured Jet A-1 fuel sold to above enumerated airlines cannot be refunded. Third requirement: Proof that the imported and locally manufactured Jet A-1 fuel were used or consumed outside the Philippines. As to the third requirement, petitioner's ASRs, indicate the details of the Jet A-1 fuel deliveries made by petitioner to international air carriers, such as the name of international air carrier to whom the Jet A-1 fuel was delivered to, the origin and destination of the international air carrier named therein, and volume in liter of Jet A-1 fuel delivered to international a1r

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 43 of65 X------------------------------------------------------------------------------------------X carriers. It Carl be glear~ed from each of the ASRs that the destination of the international air carrier named therein (whether of foreign or Philippine registry) is the code of ar1 airport located in other country, thereby proving that the sold imported ar1d locally mar~ufactured Jet A-1 fuel was used or consumed outside the Philippines. From the following disquisitions, We find that a total of 5,893,246 liters of Jet A-1 fuel with equivalent excise taxes of P23,572,984.00 shall be disallowed from the present claim, to wit: Exhibit Date ASRNo. Customer Volume Excise Tax Rate in Liters at 1'4.00 A. Excise taxes on sale of Jet A-1 fuel to airlines with valid FACP but sold from TOGRI on September 2019 and Januan to August 2020 ''P-106-488b'" Sep. 18, 2019 54275 CEBU AIR INC 10,066 I' 40,264.00 "P-106-489b'" Sep. 18, 2019 54278 CEBU AIR INC 15,689 62,756.00 "P-1 06-490b"" Sep. 18, 2019 54276 PHILIPPINE AIRLINES INC. 14,066 56,264.00 SILKAIR SINGAPORE "P-1 06-491 b'" Sep. 18, 2019 54279 PRIVATE LIMITED 4,033 16,132.00 SILKAIR SINGAPORE "P-106-492b"" Sep. 18, 2019 54280 PRIVATE LIMITED 6,602 26,408.00 "P-106-493b"" Sep. 18, 2019 54277 XIAMEN AIRLINE CO LTD 7,183 28,732.00 "P-106-494b'" Sep. 19, 2019 54281 CEBU AIR INC 12,661 50,644.00 "P-106-495b'" Sep. 19,2019 54284 CEBU AIR INC 13,803 55,212.00 "P-106-496b'" Sep. 19,2019 54282 PHILIPPINE AIRLINES INC 17,604 70,416.00 "P-106-497b'" Sep. 19, 2019 54287 PHILIPPINE AIRLINES INC 13,996 55,984.00 SILKAIR SINGAPORE "P-106-498b"" Sep. 19, 2019 54285 PRNATE LIMITED 6,829 27,316.00 SILKAIR SINGAPORE "P-106-499b'" Sep. 19, 2019 54286 PRIVATE LIMITED 9,894 39,576.00 "P-106-754b'" Sep. 19,2019 54283 XIAMEN AIRLINE CO LTD 6,882 27,528.00 "P-106-755b"" Sep. 19, 2019 54288 XIAMEN AIRLINE CO LTD 16,151 64,604.00 "P-106-756b'" Sep. 20, 2019 54290 CEBU AIR INC 10,274 41,096.00 "P-106-757b'" Sep. 20, 2019 54294 CEBU AIR INC 13,597 54,388.00 "P-106-758b"" Sep. 20, 2019 54291 PHILIPPINE AIRLINES INC 13,055 52,220.00 SILKAIR SINGAPORE "P-106-759b"" Sep. 20, 2019 54295 PRNATE LIMITED 5,276 21,104.00 "P-1 06-760b'" Sep. 20, 2019 54292 XIAMEN AIRLINE CO LTD 7,596 30,384.00 "P-106-761b'" Sep. 21, 2019 54296 CEBU AIR INC 11,374 45,496.00 "P-106-762b"" Sep. 21, 2019 54300 CEBU AIR INC 13,883 55,532.00 "P-106-763b'" Sep. 21, 2019 54297 PHILIPPINE AIRLINES INC 17,099 68,396.00 "P-106-764b'" Sep. 21, 2019 54304 PHILIPPINE AIRLINES INC 10,172 40,688.00 SILKAIR SINGAPORE "P-106-765b'" Sep. 21, 2019 54301 PRNATE LIMITED 6,001 24,004.00 SILKAIR SINGAPORE "P-106-766b"" Sep. 21,2019 54302 PRIVATE LIMITED 9,371 37,484.00 "P-1 06-807b"" Sep. 21,2019 54298 XIAMEN AIRLINE CO LTD 8,171 32,684.00 "P-106-808b'" Sep. 21,2019 54303 XIAMEN AIRLINE CO LTD 16,329 65,316.00 "P-1 06- I 2922b'" Sep. 22, 2019 54306 CEBU AIR INC 11,122 44,488.00 "P-1 06- Sep. 22, 2019 54310 CEBU AIR INC 15,804 63,216.00 2923b'" "P-106- Sep. 22, 2019 54307 PHILIPPINE AIRLINES INC 13,133 52,532.00 2924b'" "P-1 06- SILKAIR SINGAPORE 3,847 15,388.00 2925b'" Sep. 22, 2019 54311 PRNATE LIMITED

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 44 of65 X------------------------------------------------------------------------------------------X Exhibit Date ASRNo. Customer Volume Excise Tax Rate Sen. 22, 2019 54312 "P-106- SILKAIR SINGAPORE in Liters at P4.00 2926b" PRIVATE LIMITED "P-106- 9,774 39,096.00 2927b" "P-106- Sen. 22,2019 54308 XIAMEN AIRLINE CO LTD 7,193 28,772.00 2928b" "P-106- Sen. 23, 2019 54313 CEBU AIR INC 10,215 40,860.00 2929b" "P-106- Sen. 23, 2019 54316 CEBU AIR INC 11,900 47,600.00 2930b" "P-106- Sen. 23, 2019 54314 PHILIPPINE AIRLINES INC 15,935 63,740.00 2931b" Sen. 23, 2019 54317 SILKAIR SINGAPORE "P-106- Sen. 23, 2019 54318 PRIVATE LIMITED 6,552 26,208.00 2932b" SILKAIR SINGAPORE "P-106- PRIVATE LIMITED 9,621 38,484.00 2933b" "P-106- Sen. 24,2019 54319 CEBU AIR INC 9,699 38,796.00 2934b" "P-106- Sen. 24, 2019 54320 CEBU AIR INC 1,385 5,540.00 2935b" "P-1 06- Sen. 24, 2019 54323 CEBU AIR INC 10,274 41,096.00 2978b" "P-106- Sen. 24, 2019 54321 PHILIPPINE AIRLINES INC 14,195 56,780.00 2979b" "P-106- Sen. 24, 2019 54327 PHILIPPINE AIRLINES INC 10,962 43,848.00 2980b" Sen. 24, 2019 54324 SILKAIR SINGAPORE "P-106- Sep. 24, 2019 54326 PRIVATE LIMITED 4,155 16,620.00 2981 b" SILKAIR SINGAPORE "P-106- PRIVATE LIMITED 9,7, 26 38,904.00 2982b" 32,320.00 "P-106- Sen. 24, 2019 54322 XIAMEN AIRLINE CO LTD 8,080 2983b" "P-106- Sen. 24, 2019 54325 XIAMEN AIRLINE CO LTD 14,883 59,532.00 2984b" "P-106- Sen. 25, 2019 54329 CEBU AIR INC 11,586 46,344.00 2985b" "P-106- Sen. 25, 2019 54333 CEBU AIR INC 11,052 44,208.00 2986b" "P-106- Sen. 25, 2019 54330 PHILIPPINE AIRLINES INC 9,963 39,852.00 2987b" Sen. 25, 2019 54334 "P-106- Sen. 25, 2019 54335 SILKAIR SINGAPORE 8,672 34,688.00 2988b" PRIVATE LIMITED 8,980 35,920.00 "P-106- SILKAIR SINGAPORE 2989b" PRIVATE LIMITED "P-106- 2989b" Sep. 25, 2019 54331 XIAMEN AIRLINE CO LTD 7,488 29,952.00 "P-1 06- 299lb" Sen. 26, 2019 54336 CEBU AIR INC 9,499 37,996.00 "P-106- 2990b" Sen. 26, 2019 54339 CEBU AIR INC 11,086 44,344.00 "P-106- 3017b" Sen. 26, 2019 54337 PHILIPPINE AIRLINES INC 15,644 62,576.00 "P-106- 30 18b" Sen. 26,2019 54343 PHILIPPINE AIRLINES INC 10,979 43,916.00 "P-106- Sep. 26, 2019 54340 SILKAIR SINGAPORE 30 19b" Sen. 26, 2019 54341 PRIVATE LIMITED 6,088 24,352.00 "P-106- SILKAIR SINGAPORE 3020b" PRIVATE LIMITED 9,320 37,280.00 "P-106- 3021 b" Sep. 26, 2019 54338 XIAMEN AIRLINE CO LTD 7,311 29,244.00 Sen. 26,2019 54342 XIAMEN AIRLINE CO LTD 15,786 63,144.00

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 45 of65 X------------------------------------------------------------------------------------------X Exhibit Date ASRNo. Customer Volume Excise Tax Rate ''P-106- in Liters at P4.00 3022b" "P-106- Sep. 27, 2019 54345 CEBU AIR INC 9,549 38,196.00 3023b" "P-106- Sep. 27, 2019 54349 CEBU AIR INC 10,129 40,516.00 3024b" "P-1 06- Sep. 27, 2019 54346 PHILIPPINE AIRLINES INC 12,502 50,008.00 3025b" Sep. 27,2019 54350 SILKAIR SINGAPORE 5,471 21,884.00 "P-106- PRIVATE LIMITED 3026b" "P-106- Sep. 27, 2019 54348 XIAMEN AIRLINE CO LTD 8,770 35,080.00 3027b" "P-106- Sep. 28, 2019 54351 CEBU AIR INC 10,281 41,124.00 3028b" "P-106- Sep. 28, 2019 54355 CEBU AIR INC 11,654 46,616.00 3029b" "P-1 06- Sep. 28, 2019 54352 PHILIPPINE AIRLINES INC 15,284 61,136.00 3030b" "P-106- Sep. 28,2019 54359 PHILIPPINE AIRLINES INC 13,662 54,648.00 3031b" Sep. 28, 2019 54356 SILKAIR SINGAPORE 5,903 23,612.00 "P-1 06- Sep. 28, 2019 54357 PRIVATE LIMITED 41,044.00 3059b" SILKAIR SINGAPORE 10,261 "P-106- PRIVATE LIMITED 3060b" "P-106- Sep. 28, 2019 54353 XIAMEN AIRLINE CO LTD 7,176 28,704.00 3061b" "P-106- Sep. 28, 2019 54358 XIAMEN AIRLINE CO LTD 15,535 62,140.00 3062b" "P-106- Sep. 29, 2019 54361 CEBU AIR INC 10,386 41,544.00 3063b" "P-106- Sep. 29, 2019 54365 CEBU AIR INC 12,330 49,320.00 3064b" "P-1 06- Sep. 29, 2019 54362 PHILIPPINE AIRLINES INC 11,075 44,300.00 3090b" Sep. 29, 2019 54366 7,658 30,632.00 "P-106- Sep. 29,2019 54367 SILKAIR SINGAPORE 8,537 34,148.00 3091 b" PRIVATE LIMITED "P-106- 3097b" SILKAJR SINGAPORE "P-106- PRIVATE LIMITED 3098b" "P-106- Sep. 29, 2019 54363 X1AMEN AIRLINE CO LTD 7,599 30,396.00 3099b" "P-106- Sep. 30, 2019 54368 CEBU AIR INC 11,173 44,692.00 3100b" Sep. 30, 2019 54370 CEBU AIR INC 14,330 57,320.00 "P-106- 3101b" Sep. 30,2019 54369 PHILIPPINE AIRLINES INC 12,326 49,304.00 "P-106- Sep. 30,2019 54371 SILKAJR SINGAPORE 5,687 22,748.00 3102b" Sep. 30, 2019 54372 PRIVATE LIMITED 8,391 33,564.00 "P-1 06- Jan. 6,2020 0003256 SILKAJR SINGAPORE 7,335 29,340.00 3115b" PRIVATE LIMITED 15,315 61,260.00 "P-106- SILKAIR SINGAPORE 13,453 53,812.00 3116b" PRIVATE LIMITED 18,510 74,040.00 "P-106- 16,752 67,008.00 3117b" Jan. 7, 2020 0003257 CEBU AIR INC 10,797 43,188.00 "P-106- 3118b" Jan. 7,2020 0003260 CEBU AIR INC "P-106- 3119b" Jan. 7,2020 0003258 PHILIPPINE AIRLINES INC "P-106- 3120b" Jan. 7, 2020 0003262 PHILIPPINE AIRLINES INC Jan. 7, 2020 SILKAIR SINGAPORE 0003259 PRIVATE LIMITED

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 46 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate Jan. 7, 2020 "P-106- in Liters at 1'4.00 312lb" "P-106- SILKAIR SINGAPORE 9,632 38,528.00 3122b" 0003261 PRIVATE LIMITED "P-106- 3123b" Jan. 8,2020 0003263 CEBU AIR INC 13,929 55,716.00 "P-I 06- 3124b" Jan. 8, 2020 0003267 CEBU AIR INC 10,962 43,848.00 "P-I 06- 59,224.00 3125b" Jan. 8,2020 0003264 PHILIPPINE AIRLINES INC � 18,924.00 "P-106- Jan. 8,2020 0003266 35,712.00 3126b" Jan. 8,2020 0003268 SILKAIR SINGAPORE 14,806 "P-106- PRIVATE LIMITED 3127b" SILKAIR SINGAPORE 4,731 "P-106- PRIVATE LIMITED 3162b" 8,928 "P-106- 3163b" Jan. 9, 2020 0003270 CEBU AIR INC 12,148 48,592.00 "P-106- 3164b" Jan. 9,2020 0003273 CEBU AIR INC 10,495 41,980.00 "P-106- 3165b" Jan. 9,2020 0003271 PHILIPPINE AIRLINES INC 16,549 66,196.00 "P-I 06- 3166b" Jan. 9,2020 0003275 PHILIPPINE AIRLINES INC 10,992 43,968.00 "P-106- Jan. 9, 2020 0003272 SILKAIR SINGAPORE 9,795 39,180.00 3167b" Jan. 9, 2020 0003274 PRIVATE LIMITED 40,500.00 "P-106- SILKAIR SINGAPORE 10,125 3168b" PRIVATE LIMITED "P-106- 3169b" Jan. 10, 2020 0003276 CEBU AIR INC 11,445 45,780.00 "P-106- 3170b" Jan. 10, 2020 0003280 CEBU AIR INC 9,770 39,080.00 "P-106- 13,9' 44 55,776.00 3171b" Jan. 10, 2020 0003277 PHILIPPINE AIRLINES INC 9,343 37,372.00 "P-106- Jan. 10, 2020 0003279 SILKAIR SINGAPORE 20,024.00 3172b" Jan. 10, 2020 0003281 PRIVATE LIMITED 5,006 "P-106- SILKAIR SINGAPORE 3173b" PRIVATE LIMITED "P-106- 3174b" Jan. 11, 2020 0003283 CEBU AIR INC 11,939 47,756.00 "P-106- 3175b" Jan. II, 2020 0003286 CEBU AIR INC 9,159 36,636.00 "P-106- 3202b" Jan. 11, 2020 0003284 PHILIPPINE AIRLINES INC 14,254 57,016.00 "P-106- 15,979 63,916.00 3203b" Jan. II, 2020 0003289 PHILIPPINE AIRLINES INC 33,812.00 "P-1 06- Jan. 11, 2020 0003285 SILKAIR SINGAPORE 8,453 42,712.00 3204b" Jan. II, 2020 0003287 PRIVATE LIMITED 10,678 44,700.00 "P-1 06- SILKAIR SINGAPORE 11,175 49,844.00 3205b" PRIVATE LIMITED 12,461 "P-1 06- 3206b" Jan. 12, 2020 0003290 CEBU AIR INC "P-I 06- 3207b" Jan. 12, 2020 0003294 CEBU AIR INC "P-I 06- 3208b" Jan. 12, 2020 0003291 PHILIPPINE AIRLINES INC 14,620 58,480.00 "P-106- Jan. 12, 2020 0003293 SILKAIR SINGAPORE 6,938 27,752.00 3209b" Jan. 12, 2020 0003295 PRIVATE LIMITED 9,427 37,708.00 "P-I 06- SILKAIR SINGAPORE 17,451 69,804.00 321Gb" PRIVATE LIMITED 12,979 51,916.00 Jan. 13, 2020 0003297 CEBU AIR INC Jan. 13, 2020 0003301 CEBU AIR INC

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 47 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-1 06- in Liters at P4.00 3211b" "P-106- Jan. 13, 2020 0003298 PHILIPPINE AIRLINES INC 18,580 74,320.00 3212b" Jan. 13, 2020 0003300 SILKAIR SINGAPORE 10,159 40,636.00 "P-106- Jan. 13, 2020 0003302 PRIVATE LIMITED 39,476.00 3213b" SILKAIR SINGAPORE 9,869 "P-106- PRIVATE LIMITED 3214b" "P-106- Jan. 14, 2020 0003303 CEBU AIR INC 4,397 17,588.00 3215b" "P-1 06- Jan. 14, 2020 0003306 CEBU AIR INC 12,518 50,072.00 3240b" "P-106- Jan. 14, 2020 0003304 PHILIPPINE AIRLINES INC 14,615 58,460.00 3241 b" "P-106- Jan. 14, 2020 0003308 PHILIPPINE AIRLINES INC 18,770 75,080.00 3242b" Jan. 14, 2020 0003305 SILKAIR SINGAPORE 8,978 35,912.00 "P-1 06- Jan. 14, 2020 0003307 PRIVATE LIMITED 9,921 39,684.00 3243b" SILKAIR SINGAPORE "P-106- PRIVATE LIMITED 3244b" "P-106- Jan. 15, 2020 0003309 CEBU AIR INC 11,393 45,572.00 3245b" "P-106- Jan. 15, 2020 0003313 CEBU AIR INC 10,597 42,388.00 3246b" "P-106- Jan. 15, 2020 0003310 PHILIPPINE AIRLINES INC 14,629 58,516.00 3247b" Jan. 15, 2020 0003312 SJLKAIR SINGAPORE 8,772 35,088.00 "P-1 06- Jan. 15, 2020 0003314 PRIVATE LIMITED 9,862 39,448.00 3271b" SILKAIR SINGAPORE "P-106- PRIVATE LIMITED 3272b" "P-106- Jan. 16, 2020 0003316 CEBU AIR INC 12,744 50,976.00 3284b" "P-106- Jan. 16, 2020 0003319 CEBU AIR INC 5,818 23,272.00 3285b" "P-106- Jan. 16, 2020 0003317 PHILIPPINE AIRLINES INC 16,197 64,788.00 3286b" "P-106- Jan. 16, 2020 0003321 PHILIPPINE AIRLINES INC 11,185 44,740.00 3287b" Jan. 16, 2020 0003318 SILKAIR SINGAPORE 8,449 33,796.00 "P-106- Jan. 16, 2020 0003320 PRIVATE LIMITED 9,554 38,216.00 3290b" SILKAIR SINGAPORE 12,011 48,044.00 "P-106- PRIVATE LIMITED 3291 b" "P-106- Jan. 17, 2020 0003322 CEBU AIR INC 3292b" "P-106- Jan. 17, 2020 0003326 CEBU AIR INC 12,244 48,976.00 3293b" "P-106- Jan. 17, 2020 0003323 PHILIPPINE AIRLINES INC 14,427 57,708.00 3294b" Jan. 17, 2020 0003325 SILKAJR SINGAPORE 7,423 29,692.00 "P-106- Jan. 17,2020 0003327 PRIVATE LIMITED 9,451 37,804.00 3295b" SILKAIR SINGAPORE 12,435 49,740.00 "P-106- PRIVATE LIMITED 9,492 37,968.00 3296b" "P-106- Jan. 18, 2020 0003329 CEBU AIR INC 3297b" "P-106- Jan. 18, 2020 0003332 CEBU AIR INC 3331 b" "P-106- Jan. 18, 2020 0003330 PHILIPPINE AIRLINES INC 10,411 41,644.00 3332b" 13,595 54,380.00 "P-106- Jan. 18, 2020 0003335 PHILIPPINE AIRLINES INC 6,473 25,892.00 3333b" SILKAIR SINGAPORE Jan. 18, 2020 0003331 PRIVATE LIMITED

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 48 of65 X------------------------------------------------------------------------------------------X Exhibit Date ASR No. Customer Volume Excise Tax Rate in Liters at P4.00 "P-106- Jan. 18, 2020 0003333 SILKAIR SINGAPORE 10,065 40,260.00 3334b" PRIVATE LIMITED "P-1 06- Jan. 19, 2020 0003336 12,176 48,704.00 3335b" CEBU AIR INC "P-106- Jan. 19, 2020 0003340 7,099 28,396.00 1442b" Jan. 19, 2020 3340 CEBU AIR INC 2,433 9,732.00 "P-1 06-625b" Jan. 19, 2020 CEBU AIR INC 13,131 "P-1 06-626b" Jan. 19,2020 0003337 PHILIPPINE AIRLINES INC 10,122 52,524.00 "P-1 06-627b" 3341 SILKAIR SG PRIVATE LTD 40,488.00 SILKAIR SINGAPORE "P-1 06-628b" Jan.19,2020 0003339 PRIVATE LIMITED 6,723 26,892.00 "P-106-629b" Jan. 20, 2020 3343 CEBU AIR INC 9,858 39,432.00 "P-106-630b" Jan. 20, 2020 3347 CEBU AIR INC 5,558 22,232.00 "P-106-631 b" Jan. 20, 2020 3344 PHILIPPINE AIRLINES INC 13,603 54,412.00 "P-1 06-632b" Jan. 20,2020 3346 SILKAIR SG PRIVATE LTD 8,503 34,012.00 "P-1 06-960b" Jan. 20, 2020 3348 SILKAIR SG PRIVATE LTD 10,463 41,852.00 "P-1 06-961 b" Jan. 20,2020 3350 SILKAIR SG PRIVATE LTD 7,019 28,076.00 "P-1 06-962b" Jan. 21, 2020 3349 CEBU AIR INC 11,154 44,616.00 "P-1 06-963b" Jan. 21,2020 3352 CEBU AIR INC 9,251 37,004.00 "P-106-964b" Jan. 21,2020 3351 PHILIPPINE AIRLINES INC 16,249 64,996.00 "P-106-965b" Jan. 21,2020 3353 SILKAIR SG PRIVATE LTD 9,627 38,508.00 "P-1 06-966b" Jan. 22,2020 3355 CEBU AIR INC 10,533 42,132.00 "P-1 06-967b" Jan. 22,2020 3358 CEBU AIR INC 12,702 50,808.00 "P-1 06-968b" Jan. 22,2020 3359 CEBU AIR INC 8,104 32,416.00 "P-1 06-969b" Jan. 22,2020 3354 PHILIPPINE AIRLINES INC 14,660 58,640.00 "P-106- Jan. 22,2020 3357 SILKAIR SG PRIVATE LTD 7,632 30,528.00 2936b" "P-106- Jan.22,2020 3360 SILKAIR SG PRIVATE LTD 9,426 37,704.00 2937b" "P-1 06- Jan. 23,2020 3362 CEBU AIR INC 7,960 31,840.00 2938b" "P-106- Jan. 23,2020 3365 CEBU AIR INC 8,825 35,300.00 2939b" Jan. 23,2020 3363 14,564 58,256.00 PHILIPPINE AIRLINES INC "P-106- Jan. 23,2020 3367 14,915 59,660.00 PHILIPPINE AIRLINES INC 2940b" Jan. 23,2020 3364 6,656 26,624.00 "P-106- SILKAIR SG PRIVATE LTD 10,522 42,088.00 2941b" Jan. 23,2020 3366 11,720 46,880.00 "P-1 06- SILKAIR SG PRIVATE LTD 2942b" Jan. 24,2020 3368 "P-106- CEBU AIR INC 2943b" Jan. 24, 2020 3372 13,070 52,280.00 "P-106- CEBU AIR INC 2944b" Jan. 24, 2020 3369 4,038 16,152.00 "P-1 06- PHILIPPINE AIRLINES INC 2945b" Jan. 24, 2020 3371 7,659 30,636.00 "P-106- SILKAIR SG PRIVATE LTD 2993b" Jan. 24, 2020 3373 5,558 22,232.00 "P-106- SILKAIR SG PRIVATE LTD 58,468.00 2994b" Jan. 25, 2020 3375 , "P-106- CEBU AIR INC 2995b" 14,617 "P-106- CEBU AIR INC 2996b" Jan. 25,2020 3378 11,802 47,208.00 "P-106- PHILIPPINE AIRLINES INC 2997b" Jan. 25,2020 3376 13,700 54,800.00 "P-106- PHILIPPINE AIRLINES INC 2998b" Jan. 25, 2020 3381 16,052 64,208.00 "P-106- 2999b"

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 49 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-106- in Liters at 1'4.00 3000b'' "P-106- Jan. 25, 2020 3377 SILKAIR SG PRIVATE LTD 7,288 29,152.00 3001b" "P-1 06- Jan. 25,2020 3380 SILKAIR SG PRIVATE LTD 9,656 38,624.00 3002b" "P-106- Jan. 26, 2020 3382 CEBU AIR INC 15,056 60,224.00 3032b" "P-106- Jan. 26, 2020 3386 CEBU AIR INC 1,303 5,212.00 3033b" "P-106- Jan. 26, 2020 3383 PHILIPPINE AIRLINES INC 12,548 50,192.00 3034b" "P-1 06- Jan. 26,2020 3385 SILKAIR SG PRIVATE LTD 5,231 20,924.00 303Sb" "P-1 06- Jan. 26,2020 3387 SILKAIR SG PRIVATE LTD 9,170 36,680.00 3036b" "P-1 06- Jan. 27, 2020 3389 CEBU AIR INC 10,964 43,856.00 3037b" "P-106- Jan. 27, 2020 3393 CEBU AIR INC 9,524 38,096.00 3038b" "P-106- Jan. 27, 2020 3390 PHILIPPINE AIRLINES INC 10,929 43,716.00 3039b" "P-106- Jan. 27, 2020 3392 SILKAIR SG PRIVATE LTD 8,393 33,572.00 3040b" "P-106- Jan. 27, 2020 3394 SILKAIR SG PRIVATE LTD 8,030 32,120.00 307Sb" "P-106- Jan. 28, 2020 3395 CEBU AIR INC 11,965 47,860.00 3076b" "P-106- Jan. 28, 2020 3398 CEBU AIR INC 12,056 48,224.00 3093b" "P-106- Jan. 28, 2020 3396 PHILIPPINE AIRLINES INC 11,986 47,944.00 3094b" "P-106- Jan. 28, 2020 3400 PHILIPPINE AIRLINES INC 13,618 54,472.00 309Sb" "P-106- Jan. 28, 2020 3397 SILKAIR SG PRIVATE LTD 6,652 26,608.00 3096b" "P-106- Jan. 28, 2020 3399 SILKAIR SG PRIVATE LTD 8,882 35,528.00 3103b" "P-106- Jan. 29,2020 3401 CEBU AIR INC 10,766 43,064.00 3104b" "P-106- Jan. 29,2020 3405 CEBU AIR INC 9,880 39,520.00 310Sb" Jan. 29,2020 3402 PHILIPPINE AIRLINES INC 10,437 41,748.00 "P-1 06- Jan. 29, 2020 3404 SILKAIR SG PRIVATE LTD 22,220.00 3106b" 5,555 "P-106- 3128b" Jan. 29, 2020 3406 SILKAIR SG PRIVATE LTD 8,812 35,248.00 "P-106- 3129b" Jan. 30, 2020 3408 CEBU AIR INC 15,186 60,744.00 "P-106- Jan. 30,2020 3411 CEBU AIR INC 5,533 22,132.00 3130b" "P-106- Jan. 30,2020 3409 PHILIPPINE AIRLINES INC 14,976 59,904.00 3131b" Jan. 30,2020 3413 PHILIPPINE AIRLINES INC 13,031 52,124.00 "P-1 06- Jan. 30,2020 3410 SILKAIR SG PRIVATE LTD 20,392.00 3132b" Jan. 30,2020 3412 SILKAIR SG PRIVATE LTD 5,098 42,076.00 "P-1 06- Jan. 31, 2020 3414 CEBU AIR INC 10,519 46,032.00 3133b" 11,508 "P-106- 3134b" "P-106- 313Sb"

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 50 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-106- in Liters at P4.00 3136b" "P-106- Jan. 31,2020 3418 CEBU AIR INC 782 3,128.00 3137b" Jan. 31,2020 3415 PHILIPPINE AIRLINES INC "P-1 06- Jan. 31, 2020 3417 SILKAIR SG PRNATE LTD 12,184 48,736.00 3176b" Jan. 31,2020 3419 SILKAIR SG PRIVATE LTD "P-106- Feb. 1, 2020 3421 CEBU AIR INC 3,839 15,356.00 3177b" Feb. 1, 2020 3424 CEBU AIR INC "P-1 06- Feb. 1, 2020 3422 PHILIPPINE AIRLINES INC 9,690 38,760.00 3178b" Feb. 1, 2020 3427 PHILIPPINE AIRLINES INC "P-106- Feb. 1, 2020 3423 SILKAIR SG PRIVATE LTD 11,248 44,992.00 3179b" Feb. 1, 2020 3425 SILKAIR SG PRIVATE LTD "P-106- Feb. 2,2020 3428 CEBU AIR INC 10,698 42,792.00 3180b" Feb. 2,2020 3432 CEBU AIR INC "P-106- Feb. 2,2020 3429 PHILIPPINE AIRLINES INC 13,071 52,284.00 3181b'' Feb. 2,2020 3431 SILKAIR SG PRNATE LTD "P-106- Feb. 2, 2020 3434 SILKAIR SG PRNATE LTD 14,500 58,000.00 3182b" Feb. 3, 2020 3436 CEBU AIR INC "P-106- Feb. 3, 2020 3439 CEBU AIR INC 4,187 16,748.00 3183b" Feb. 3, 2020 3433 PHILIPPINE AIRLINES INC "P-106- Feb. 3, 2020 3438 SILKAIR SG PRIVATE LTD 10,218 40,872.00 3184b" Feb. 3,2020 3440 SILKAIR SG PRIVATE LTD "P-1 06- Feb. 4,2020 3441 CEBU AIR INC 11,268 45,072.00 3185b" Feb. 4, 2020 3444 CEBU AIR INC "P-106- Feb. 4, 2020 3442 PHILIPPINE AIRLINES INC 8,523 34,092.00 3216b" Feb. 4,2020 3446 PHILIPPINE AIRLINES INC "P-106- Feb. 4,2020 3443 SILKAIR SG PRNATE LTD 11,052 44,208.00 3217b" Feb. 4, 2020 3445 SILKAIR SG PRNATE LTD "P-106- Feb. 5, 2020 3447 CEBU AIR INC 2,752 11,008.00 3218b" Feb. 5,2020 3450 CEBU AIR INC "P-106- Feb. 5,2020 3448 PHILIPPINE AIRLINES INC 9,747 38,988.00 3219b" Feb. 5,2020 3451 SILKAIR SG PRNATE LTD "P-106- 12,695 50,780.00 3220b" "P-106- 8,661 34,644.00 3221 b" "P-106- 13,829 55,316.00 3222b" "P-1 06- 6,087 24,348.00 3223b" "P-106- 9,681 38,724.00 3224b" 13,382 53,528.00 "P-106- 3225b" 9,517 38,068.00 "P-106- 3273b" 13,608 54,432.00 "P-106- 3274b" 16,199 64,796.00 "P-1 06- 3275b" 6,121 24,484.00 "P-106- 3276b" 9,869 39,476.00 "P-106- 3277b" 11,979 47,916.00 "P-106- 3278b" 9,721 38,884.00 "P-106- 11,477 45,908.00 3279b" "P-106- 3,752 15,008.00 3280b"

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue X------------------------------------------------------------------------------------------X Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-106- in Liters at P4.00 3281b" "P-106- Feb. 5, 2020 3452 SILKAIR SG PRIVATE LTD 9,324 37,296.00 3282b" Feb. 6, 2020 3454 CEBU AIR INC "P-106- Feb. 6, 2020 3457 CEBU AIR INC 1,960 7,840.00 3283b" Feb. 6, 2020 3455 PHILIPPINE AIRLINES INC "P-106- Feb. 6, 2020 3459 PHILIPPINE AIRLINES INC 10,172 40,688.00 3298b" Feb. 6, 2020 3456 SILKAIR SG PRIVATE LTD 14,718 58,872.00 "P-106- Feb. 6,2020 3458 SILKAIR SG PRIVATE LTD 3299b" Feb. 7,2020 3460 CEBU AIR INC 13,825 55,300.00 "P-106- Feb. 7,2020 3463 CEBU AIR INC 3300b" Feb. 7, 2020 3461 PHILIPPINE AIRLINES INC 2,578 10,312.00 "P-106- Feb. 7, 2020 3464 SILKAIR SG PRIVATE LTD 3301b" Feb. 7, 2020 3465 SILKAIR SG PRIVATE LTD 9,369 37,476.00 "P-106- Feb. 8, 2020 3467 CEBU AIR INC 3302b" Feb. 8, 2020 3470 CEBU AIR INC 12,803 51,212.00 "P-106- Feb. 8, 2020 3468 PHILIPPINE AIRLINES INC 3303b" Feb. 8, 2020 3473 PHILIPPINE AIRLINES INC 10,323 41,292.00 "P-106- Feb. 8,2020 3469 SILKAIR SG PRIVATE LTD 3304b" Feb. 8, 2020 3472 SILKAIR SG PRIVATE LTD 10,304 41,216.00 "P-106- Feb. 9, 2020 3474 CEBU AIR INC 3305b" Feb. 9, 2020 3477 CEBU AIR INC 2,143 8,572.00 "P-106- Feb. 9,2020 3475 PHILIPPINE AIRLINES INC 3306b" Feb. 9, 2020 3478 SILKAIR SG PRIVATE LTD 9,793 39,172.00 "P-106- Feb. 9, 2020 3479 SILKAIR SG PRIVATE LTD 3307b" Feb. 10, 2020 3481 CEBU AIR INC 12,457 49,828.00 "P-106- Feb. 10, 2020 3482 PHILIPPINE AIRLINES INC 3336b" Feb. 10, 2020 3484 SILKAIR SG PRIVATE LTD 12,069 48,276.00 "P-106- Feb. 10, 2020 3485 SILKAIR SG PRIVATE LTD 3337b" Feb. 11, 2020 3486 CEBU AIR INC 13,768 55,072.00 "P-1 06- Feb. 11, 2020 3489 CEBU AIR INC 3338b" Feb. 11, 2020 3487 PHILIPPINE AIRLINES INC 15,194 60,776.00 "P-106- 6,442 25,768.00 3339b" "P-106- 9,479 37,916.00 3340b" 12,779 51,116.00 "P-106- 3341 b" 8,189 32,756.00 "P-106- 11,070 44,280.00 3342b" 30,340.00 "P-106- 7,585 3343b" "P-106- 9,387 37,548.00 3344b" "P-106- 6,837 27,348.00 3345b" "P-106- 13,908 55,632.00 3359b" 11,972.00 "P-106- 2,993 39,780.00 3360b" "P-106- ' 3361 b" "P-106- 9,945 3362b" "P-1 06- 13,878 55,512.00 3363b" 9,597 38,388.00 "P-106- 3364b" 14,312 57,248.00 "P-106- 3365b"

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 52 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-1 06- in Liters at P4.00 3379b" "P-106- Feb. 11, 2020 3491 PHILIPPINE AIRLINES INC 15,646 62,584.00 3380b" Feb. 11, 2020 3488 SJLKAIR SG PRIVATE LTD "P-106- Feb. 11, 2020 3490 SILKAIR SG PRIVATE LTD 8,151 32,604.00 3381b" Feb. 12, 2020 3492 CEBU AIR INC "P-106- Feb. 12, 2020 3495 CEBU AIR INC 9,457 37,828.00 3382b" Feb. 12, 2020 3493 PHILIPPINE AIRLINES INC "P-106- Feb. 12, 2020 3496 SILKAIR SG PRIVATE LTD 11,871 47,484.00 3383b" Feb. 12, 2020 3497 SILKAIR SG PRIVATE LTD "P-106- Feb. 13, 2020 3499 CEBU AIR INC 8,085 32,340.00 3384b" Feb. 13, 2020 7002 CEBU AIR INC "P-106- Feb. 13, 2020 3500 PHILIPPINE AIRLINES INC 9,812 39,248.00 3385b" Feb. 13, 2020 7004 PHILIPPINE AIRLINES INC "P-106- Feb. 13, 2020 7001 SILKAIR SG PRIVATE LTD 2,332 9,328.00 3386b" Feb. 13, 2020 7003 SILKAIR SG PRIVATE LTD "P-106- Feb. 14, 2020 7005 CEBU AIR INC 9,502 38,008.00 3387b" Feb. 14, 2020 7008 CEBU AIR INC "P-106- Feb. 14, 2020 7006 PHILIPPINE AIRLINES INC 10,587 42,348.00 3388b" Feb. 14, 2020 7009 SILKAIR SG PRIVATE LTD "P-106- Feb. 14, 2020 7010 SILKAIR SG PRIVATE LTD 9,549 38,196.00 3389b" Feb. 15, 2020 7012 CEBU AIR INC "P-106- Feb. 15, 2020 7015 CEBU AIR INC 14,321 57,284.00 3390b" Feb. 15, 2020 7013 PHILIPPINE AIRLINES INC "P-106- Feb. 15, 2020 7018 PHILIPPINE AIRLINES INC 14,525 58,100.00 3391 b" Feb. 15, 2020 7014 SILKAIR SG PRIVATE LTD "P-106- Feb. 15, 2020 7017 SILKAIR SG PRIVATE LTD 1,962 7,848.00 3392b" Feb. 16, 2020 7019 CEBU AIR INC "P-106- Feb. 16, 2020 7022 CEBU AIR INC 9,995 39,980.00 3393b" Feb. 16, 2020 7020 PHILIPPINE AIRLINES INC "P-106- Feb. 16, 2020 7023 SILKAIR SG PRIVATE LTD 2,802 11,208.00 3394b" Feb. 16, 2020 7024 SILKAIR SG PRIVATE LTD "P-106- 10,521 42,084.00 3395b" 12,135 48,540.00 "P-106- 3396b" 2,055 8,220.00 "P-106- 3397b" 9,169 36,676.00 "P-106- 2992b" 12,631 50,524.00 "P-106- 9,875 39,500.00 2100b" "P-106- 14,281 57,124.00 1608b" "P-106- 14,792 59,168.00 30 16b" "P-106- 6,737 26,948.00 3041 b" "P-106- 8,974 35,896.00 3042b" "P-106- 10,659 42,636.00 3043b" 43,068.00 "P-106- ' 3044b" "P-1 06- 10,767 3045b" "P-1 06- 14,119 56,476.00 3046b" 5,360 21,440.00 "P-106- 3047b" 9,293 37,172.00

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 53 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASR No. Customer Volume Excise Tax Rate "P-106- in Liters at P4.00 3048b" "P-106- Feb. I 7, 2020 7025 CEBU AIR INC 11,420 45,680.00 3049b" Feb. 17, 2020 7028 CEBU AIR INC 11,214 44,856.00 "P-1 06- 3050b" Feb. 17, 2020 7026 PHILIPPINE AIRLINES INC 13,973 55,892.00 "P-106- 3051 b" Feb. 17, 2020 7029 SILKAIR SG PRIVATE LTD 3,280 13,120.00 "P-106- 3052b" Feb. 17, 2020 7030 SILKAIR SG PRIVATE LTD 9,935 39,740.00 "P-106- 3053b" Feb. 18, 2020 7031 CEBU AIR INC 13,272 53,088.00 "P-1 06- 3054b" Feb. 18, 2020 7034 CEBU AIR INC 9,429 37,716.00 "P-106- 3077b" Feb. 18, 2020 7032 PHILIPPINE AIRLINES INC 15,734 62,936.00 "P-106- 3078b" Feb. 18, 2020 7036 PHILIPPINE AIRLINES INC 15,255 61,020.00 "P-106- 3079b" Feb. 18, 2020 7033 SILKAIR SG PRIVATE LTD 6,922 27,688.00 "P-106- 3080b" Feb. 18, 2020 7035 SILKAIR SG PRIVATE LTD 9,391 37,564.00 "P-106- 3081 b" Feb.19,2020 7037 CEBU AIR INC 12,172 48,688.00 "P-106- 3082b" Feb. 19, 2020 7040 CEBU AIR INC 9,631 38,524.00 "P-106- 3083b" Feb. 19, 2020 7038 PHILIPPINE AIRLINES INC 13,311 53,244.00 "P-1 06- 3084b" Feb. 19, 2020 7041 SILKAIR SG PRIVATE LTD 3,966 15,864.00 "P-106- 3085b" Feb. 19, 2020 7042 SILKAIR SG PRIVATE LTD 8,708 34,832.00 "P-106- 3086b" Feb. 20, 2020 7043 CEBU AIR INC 11,803 47,212.00 "P-1 06- 3107b" Feb. 20, 2020 7046 CEBU AIR INC 9,564 38,256.00 "P-1 06- 3108b" Feb. 20, 2020 7044 PHILIPPINE AIRLINES INC 15,841 63,364.00 "P-106- 3109b" Feb. 20, 2020 7048 PHILIPPINE AIRLINES INC 16,423 65,692.00 "P-106- Feb. 20,2020 7045 SILKAIR SG PRIVATE LTD 4,109 16,436.00 3110b" Feb. 20, 2020 7047 SILKAIR SG PRIVATE LTD 8,615 34,460.00 "P-106- Feb. 21, 2020 7049 CEBU AIR INC 11,946 47,784.00 3138b" Feb. 21, 2020 7052 CEBU AIR INC 11,151 44,604.00 "P-106- Feb. 21, 2020 7050 PHILIPPINE AIRLINES INC 14,947 59,788.00 3139b" "P-106- Feb. 21, 2020 7053 SILKAIR SG PRIVATE LTD 2,547 10,188.00 3140b" Feb. 21, 2020 7054 SILKAIR SG PRIVATE LTD 10,326 41,304.00 "P-106- Feb. 22, 2020 7055 CEBU AIR INC 11,752 47,008.00 3141b" Feb. 22,2020 7058 CEBU AIR INC 38,220.00 "P-106- Feb. 22, 2020 7056 PHILIPPINE AIRLINES INC 9,555 63,420.00 3142b" 15,855 "P-106- 3143b" "P-106- 3144b" "P-106- 3145b" "P-106- 3146b"

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 54 of65 X------------------------------------------------------------------------------------------X Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-1 06- in Liters at 1'4.00 3147b" "P-106- Feb. 22,2020 7061 PHILIPPINE AIRLINES INC 13,629 54,516.00 3148b" Feb. 22, 2020 7057 SILKAIR SG PRIVATE LTD "P-106- Feb. 22,2020 7059 SILKAIR SG PRIVATE LTD 2,539 10,156.00 3149b" Feb. 23,2020 7062 CEBU AIR INC "P-106- Feb. 23, 2020 7065 CEBU AIR INC 9,166 36,664.00 3150b" Feb. 23,2020 7063 PHILIPPINE AIRLINES INC "P-106- Feb. 23, 2020 7066 SILKAIR SG PRIVATE LTD 12,945 51,780.00 315lb" Feb. 23, 2020 7067 SILKAIR SG PRIVATE LTD "P-106- Feb. 24,2020 7068 CEBU AIR INC 9,233 36,932.00 3186b" Feb. 24, 2020 7071 CEBU AIR INC "P-106- Feb. 24, 2020 7069 PHILIPPINE AIRLINES INC 17,014 68,056.00 3187b" Feb. 24, 2020 7072 SILKAIR SG PRIVATE LTD "P-1 06- Feb. 24, 2020 7073 SILKAIR SG PRIVATE LTD 3,360 13,440.00 3188b" Feb. 25,2020 7074 CEBU AIR INC "P-106- Feb. 25,2020 7077 CEBU AIR INC 10,054 40,216.00 3189b" Feb. 25,2020 7075 PHILIPPINE AIRLINES INC "P-106- Feb. 25, 2020 7079 PHILIPPINE AIRLINES INC 11,360 45,440.00 3190b" Feb. 25, 2020 7081 PHILIPPINE AIRLINES INC "P-106- Feb. 25, 2020 7076 SILKAIR SG PRIVATE LTD 11,133 44,532.00 319lb" Feb. 25, 2020 7078 SILKAIR SG PRIVATE LTD "P-106- Feb. 26,2020 7080 CEBU AIR INC 16,879 67,516.00 3192b" Feb. 26,2020 7084 CEBU AIR INC "P-106- Feb. 26, 2020 7082 PHILIPPINE AIRLINES INC 1,875 7,500.00 3193b" Feb. 26,2020 7085 SILKAIR SG PRIVATE LTD "P-1 06- Feb. 26,2020 7086 SILKAIR SG PRIVATE LTD 9,299 37,196.00 3194b" Feb. 27,2020 7087 CEBU AIR INC "P-106- Feb. 27,2020 7090 CEBU AIR INC 9,783 39,132.00 3195b" Feb. 27,2020 7088 PHILIPPINE AIRLINES INC "P-106- Feb. 27,2020 7092 PHILIPPINE AIRLINES INC 10,113 40,452.00 3196b" Feb. 27,2020 7089 SILKAIR SG PRIVATE LTD "P-106- 12,675 50,700.00 3197b" "P-106- 11,904 47,616.00 3198b" "P-106- 337 1,348.00 3199b" "P-106- 3,448 13,792.00 3226b" "P-106- 9,921 39,684.00 3227b" 11,503 46,012.00 "P-106- 3228b" 10,130 40,520.00 "P-106- 3229b" 14,530 58,120.00 "P-106- 3230b" 1,997 7,988.00 "P-106- 3231 b" 9,257 37,028.00 "P-106- 3232b" 13,319 53,276.00 "P-106- 46,596.00 3233b" ' "P-106- 3234b" 11,649 "P-106- 3235b" 14,504 58,016.00 "P-106- 3236b" 13,554 54,216.00 4,106 16,424.00

DECISION CTACaseNo.10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 55 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-106- in Liters at 1'4.00 3237b" "P-106- Feb. 27,2020 7091 SILKAIR SG PRIVATE LTD 5,651 22,604.00 3238b" "P-1 06- Feb. 28, 2020 7093 CEBU AIR INC 12,073 48,292.00 3239b" "P-106- Feb. 28,2020 7096 CEBU AIR INC 10,732 42,928.00 3259b" "P-106- Feb. 28, 2020 7094 PHILIPPINE AIRLINES INC 9,553 38,212.00 3260b" "P-106- Feb. 28,2020 7097 SILKAIR SG PRIVATE LTD 4,622 18,488.00 3261 b" "P-106- Feb. 28, 2020 7098 SILKAIR SG PRIVATE LTD 8,710 34,840.00 3262b" "P-1 06- Feb. 29, 2020 7099 CEBU AIR INC 12,461 49,844.00 3263b" "P-106- Feb. 29,2020 7102 CEBU AIR INC 11,530 46,120.00 3264b" "P-106- Feb. 29, 2020 7100 PHILIPPINE AIRLINES INC 14,724 58,896.00 3265b" "P-1 06- Feb. 29, 2020 7105 PHILIPPINE AIRLINES INC 15,357 61,428.00 3266b" "P-1 06- Feb. 29, 2020 7101 SILKAIR SG PRIVATE LTD 5,690 22,760.00 3267b" "P-106- Feb. 29,2020 7104 SILKAIR SG PRIVATE LTD 9,151 36,604.00 3268b" "P-106- Mar. 1, 2020 7106 CEBU AIR INC 12,141 48,564.00 3269b" "P-106- Mar. 1, 2020 7109 CEBU AIR INC 10,684 42,736.00 3270b" "P-106- Mar. 1, 2020 7107 PHILIPPINE AIRLINES INC 10,455 41,820.00 3288b" Mar. 1, 2020 7110 SILKAIR SG PRIVATE LTD 8,332.00 "P-106- , 3289b" "P-106- 2,083 3308b" "P-1 06- Mar. 1, 2020 7111 SILKAIR SG PRIVATE LTD 9,255 37,020.00 3309b" "P-106- Mar. 2, 2020 7112 CEBU AIR INC 12,248 48,992.00 3310b" "P-106- Mar. 2, 2020 7115 CEBU AIR INC 9,508 38,032.00 3311b" "P-1 06- Mar. 2, 2020 7113 PHILIPPINE AIRLINES INC 15,072 60,288.00 3312b" Mar. 2, 2020 7116 SILKAIR SG PRIVATE LTD 8,067 32,268.00 "P-1 06- Mar. 3, 2020 7117 CEBU AIR INC 48,868.00 3313b" Mar. 3, 2020 7118 PHILIPPINE AIRLINES INC 12,217 51,288.00 "P-106- Mar. 3, 2020 7121 PHILIPPINE AIRLINES INC 12,822 60,676.00 3314b" 15,169 "P-106- 3315b" Mar. 3, 2020 7119 SILKAIR SG PRIVATE LTD 6,564 26,256.00 "P-106- Mar. 3, 2020 7120 SILKAIR SG PRIVATE LTD 9,530 38,120.00 3316b" Mar. 4, 2020 7122 CEBU AIR INC 12,279 49,116.00 "P-106- Mar. 4, 2020 7123 PHILIPPINE AIRLINES INC 12,617 50,468.00 3317b" Mar. 4, 2020 7125 SILKAIR SG PRIVATE LTD 3,169 12,676.00 "P-106- Mar. 4, 2020 7126 SILKAIR SG PRIVATE LTD 10,239 40,956.00 3318b" "P-106- 3319b" "P-106- 3346b"

DECISION CTA Case No. 10611 Pi1ipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 56 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-106- Mar. 5, 2020 7127 CEBU AIR INC in Liters at 1'4.00 3347b" Mar. 5, 2020 7128 PHILIPPINE AIRLINES INC "P-106- Mar. 5, 2020 7131 PHILIPPINE AIRLINES INC 12,576 50,304.00 3348b" "P-106- Mar. 5, 2020 7129 SILKAIR SG PRIVATE LTD 12,685 50,740.00 3349b" "P-106- Mar. 5, 2020 7130 SILKAIR SG PRIVATE LTD 14,517 58,068.00 3350b" Mar. 6, 2020 7132 CEBU AIR INC "P-106- Mar. 6, 2020 7133 PHILIPPINE AIRLINES INC 3,223 12,892.00 3351 b" "P-1 06- Mar. 6, 2020 7135 SILKAIR SG PRIVATE LTD 9,723 38,892.00 3352b" "P-106- Mar. 7, 2020 7136 CEBU AIR INC 11,797 47,188.00 3353b" Mar. 7, 2020 "P-106- 7137 PHILIPPINE AIRLINES INC 11,535 46,140.00 3354b" Mar. 7, 2020 7141 PHILIPPINE AIRLINES INC "P-106- 9,237 36,948.00 3355b" Mar. 7, 2020 7138 SILKAIR SG PRIVATE LTD "P-106- Mar. 7, 2020 SILKAIR SG PRIVATE LTD 11,943 47,772.00 3356b" 7139 "P-106- Mar. 8, 2020 7142 CEBU AIR INC 15,516 62,064.00 3357b" "P-106- Mar. 8, 2020 7143 CEBU AIR INC 9,187 36,748.00 3358b" "P-1 06- Mar. 8, 2020 7144 PHILIPPINE AIRLINES INC 5,497 21,988.00 3366b" Mar. 8, 2020 7146 "P-1 06- Mar. 8, 2020 7147 SILKAIR SG PRIVATE LTD 8,642 34,568.00 3367b" Mar. 9, 2020 "P-106- 7148 SILKAIR SG PRIVATE LTD 12,942 51,768.00 3368b" Mar. 9, 2020 "P-106- Mar. 9, 2020 7149 CEBU AIR INC 12,955 51,820.00 3369b" Mar. 10, 2020 7151 42,344.00 "P-106- Mar. 10, 2020 7152 PHILIPPINE AIRLINES INC ' 3370b" Mar. 10, 2020 7153 SILKAIR SG PRIVATE LTD "P-106- Mar. 10, 2020 7156 CEBU AIR INC 10,586 3371 b" Mar. 10, 2020 7154 PHILIPPINE AIRLINES INC "P-106- Mar. 11, 2020 7155 PHILIPPINE AIRLINES INC 4,287 17,148.00 3372b" Mar. 11, 2020 7157 SILKAIR SG PRIVATE LTD "P-106- Mar. 11, 2020 7158 SILKAIR SG PRIVATE LTD 9,059 36,236.00 3373b" Mar. 12, 2020 7160 CEBU AIR INC "P-106- Mar. 12, 2020 7161 PHILIPPINE AIRLINES INC 12,050 48,200.00 3374b" Mar. 12, 2020 7162 SILKAIR SG PRIVATE LTD "P-106- Mar. 12, 2020 7165 CEBU AIR INC 14,753 59,012.00 3375b" Mar. 12, 2020 7163 PHILIPPINE AIRLINES INC "P-1 06-651 b" 7164 PHILIPPINE AIRLINES INC 9,784 39,136.00 ''P-1 06-652b" SILKAIR SG PRIVATE LTD ''P-1 06-653b" SILKAIR SG PRIVATE LTD 12,801 51,204.00 "P-106-654b" 12,421 49,684.00 "P-106-655b" 11,400 45,600.00 "P-106-656b" 4,384 17,536.00 "P-106-657b" 8,619 34,476.00 "P-106-658b" 12,186 48,744.00 "P-1 06-659b" 11,768 47,072.00 "P-106- 9,745 38,980.00 1017b" 12,543 50,172.00 "P-106- 11,274 45,096.00 1018b" "P-106- 13,228 52,912.00 1019b" 2,427 9,708.00 8,507 34,028.00

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 57 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-106- in Liters at 1'4.00 1020b" "P-106- Mar. 13, 2020 7166 CEBU AIR INC 11,651 46,604.00 1021b" Mar. 13, 2020 7167 PHILIPPINE AIRLINES INC "P-106- Mar. 13, 2020 7169 SILKAIR SG PRIVATE LTD 9,246 36,984.00 1022b" Mar. 13, 2020 7170 SILKAIR SG PRIVATE LTD "P-106- Mar. 14, 2020 7171 CEBU AIR INC 1,366 5,464.00 1023b" Mar. 14, 2020 7172 PHILIPPINE AIRLINES INC "P-106- Mar. 14, 2020 7176 PHILIPPINE AIRLINES INC 9,116 36,464.00 1024b" Mar. 14, 2020 7173 SILKAIR SG PRIVATE LTD "P-106- Mar. 14, 2020 7!74 SILKAIR SG PRIVATE LTD 14,436 57,744.00 1025b" Mar. 15, 2020 7177 PHILIPPINE AIRLINES INC "P-106- Mar. 15, 2020 7179 SILKAIR SG PRIVATE LTD 13,574 54,296.00 1026b" Mar. 15, 2020 7180 SILKAIR SG PRIVATE LTD "P-106- Mar. 15, 2020 7181 SILKAIR SG PRIVATE LTD !4,086 56,344.00 1027b" Mar. 16, 2020 7182 PHILIPPINE AIRLINES INC "P-106- Mar. 16, 2020 7184 SILKAIR SG PRIVATE LTD 2,442 9,768.00 1028b" Mar. 17, 2020 7185 PHILIPPINE AIRLINES INC "P-106- Mar. 17, 2020 7188 PHILIPPINE AIRLINES INC 9,271 37,084.00 1029b" Mar. 17, 2020 7186 SILKAIR SG PRIVATE LTD "P-106- Mar. 17, 2020 7187 SILKAIR SG PRIVATE LTD 15,158 60,632.00 1281b" Mar. 18, 2020 7189 PHILIPPINE AIRLINES INC "P-106- Mar. 18, 2020 7191 SILKAIR SG PRIVATE LTD 4,363 17,452.00 1282b" Mar. 19, 2020 7192 PHILIPPINE AIRLINES INC "P-106- Mar. 19, 2020 7195 PHILIPPINE AIRLINES INC 8,658 34,632.00 2946b" Mar. 19, 2020 7193 SILKAIR SG PRIVATE LTD "P-1 06- Mar. 19, 2020 7194 SILKAIR SG PRIVATE LTD 1' 113 4,452.00 2947b" Mar. 20, 2020 7196 PHILIPPINE AIRLINES INC "P-106- Mar. 21, 2020 7198 PHILIPPINE AIRLINES INC 11,452 45,808.00 2948b" Mar. 21, 2020 7199 SILKAIR SG PRIVATE LTD "P-106- Mar. 21, 2020 7200 SILKAIR SG PRIVATE LTD 9,891 39,564.00 2949b" Mar. 22, 2020 7201 SILKAIR SG PRIVATE LTD 13,9' 71 55,884.00 "P-106- 2950b" 11,729 46,916.00 "P-106- 2951 b" 2,248 8,992.00 "P-106- 2952b" 10,186 40,744.00 "P-106- 2953b" 13,789 55,156.00 "P-106- 2954b" 10,148 40,592.00 "P-1 06- 2955b" 11,696 46,784.00 "P-106- 2956b" 14,410 57,640.00 "P-106- 2957b" 1,127 4,508.00 "P-106- 2958b" 1,408 5,632.00 "P-106- 3003b" 11,120 44,480.00 "P-1 06- 3004b" 15,307 61,228.00 "P-1 06- 3005b" 520 2,080.00 "P-106- 3006b" 1,243 4,972.00 "P-106- 3007b" 388 1,552.00

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-106- Mar. 22, 2020 7202 SILKAIR SG PRIVATE LTD in Liters at P4.00 3008b" "P-1 06- May 21, 2020 7203 PHILIPPINE AIRLINES INC 507 2,028.00 3009b" "P-106- May 28, 2020 7204 PHILIPPINE AIRLINES INC 12,860 51,440.00 301 Ob" "P-106- May 30, 2020 7205 PHILIPPINE AIRLINES INC 8,136 32,544.00 3011b" "P-1 06- May 30, 2020 7206 PHILIPPINE AIRLINES INC 14,540 58,160.00 30 12b" "P-106- May 31, 2020 7207 PHILIPPINE AIRLINES INC 11,965 47,860.00 30 13b" "P-106- June 1, 2020 7208 PHILIPPINE AIRLINES INC 11,897 47,588.00 3014b" "P-106- June 1, 2020 7209 PHILIPPINE AIRLINES INC 7,794 31' 176.00 30 15b" June 1, 2020 7210 PHILIPPINE AIRLINES INC "P-106-463b" June 1, 2020 7211 PHILIPPINE AIRLINES INC 13,411 53,644.00 "P-106-464b" June 2, 2020 7212 PHILIPPINE AIRLINES INC 13,601 54,404.00 "P-1 06-465b" June 3, 2020 7213 PHILIPPINE AIRLINES INC 11,077 44,308.00 "P-1 06-466 b" June 4, 2020 7214 PHILIPPINE AIRLINES INC 12,097 48,388.00 "P-1 06-46 7b" June 4, 2020 7215 PHILIPPINE AIRLINES INC 24,016.00 "P-106-468b" June 4, 2020 7216 PHILIPPINE AIRLINES INC 6,004 38,228.00 "P-1 06-469b" 9,557 38,068.00 June 11, 7217 PHILIPPINE AIRLINES INC 9,517 '' P-1 06-978b" 2020 1,040.00 7218 PHILIPPINE AIRLINES INC 260 "P-106-979b" June 11, 2020 7219 PHILIPPINE AIRLINES INC 16,476 65,904.00 ''P-1 06-980b" June 11, 7220 PHILIPPINE AIRLINES INC 17,402 69,608.00 "P-106-981b" 2020 7221 PHILIPPINE AIRLINES INC 14,168 56,672.00 "P-1 06-982b" June 14, 2020 7222 PHILIPPINE AIRLINES INC 26,049 104,196.00 "P-1 06-983b" 7223 PHILIPPINE AIRLINES INC 104,816.00 "P-106-984b" June 16, 7224 PHILIPPINE AIRLINES INC ' "P-1 06-985b" 2020 7225 CEBU AIR INC "P-106-986b" 26,204 June 19, Sub-total 8,201 32,804.00 2020 24,309 97,236.00 July 13, 2020 19,877 79,508.00 July 18, 2020 21,108.00 Aug 2, 2020 5,277 P20,112,060.00 5,028,015 B. Excise taxes on sale of Jet A-1 fuel to airlines without valid FACP "P-106- 1052b" Oct. 3, 2019 0000122 AIRASIA X BERHAD 33,751 135,004.00 "P-106- 9,858 39,432.00 31,990 127,960.00 1384b" Oct. 9, 2019 0000331 AIRASIA X BERHAD 28,940 115,760.00 42,000 168,000.00 "P-106-402b" Sep. 20, 2019 53360 ATLAS AIR INC 18,730 74,920.00 "P-106-403b" Sep. 20, 2019 53362 ATLAS AIR INC 37,760 151,040.00 "P-106-691b" Sep. 26, 2019 53389 ATLAS AIR INC 40,000 160,000.00 "P-1 06-692b" Sep. 26, 2019 53390 ATLAS AIR INC ' 160,000.00 "P-106- 40,000 13,600.00 2225b" Nov. 14, 2019 0002217 ATLAS AIR INC 3,400 9,680.00 "P-106- 2,420 21 09b" Oct. 29, 2019 0001118 EUROWINGS GMBH "P-106- 2110b" Oct. 29, 2019 0001158 EUROWINGS GMBH "P-106- SCOOT TIGERAIR PTE 1619b" Oct. 2, 2019 0002513 LTD "P-106- SCOOT TIGERAIR PTE 1620b" Oct. 4, 2019 0002529 LTD

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 59 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-106- Oct. 5, 2019 0002536 SCOOT TIGERAIR PTE in Liters at P4.00 162lb" Oct. 6, 2019 0002546 LTD "P-106- Oct. 7, 2019 0002553 2,389 9,556.00 1622b" Oct. 11, 2019 0002585 SCOOT TIGERAIR PTE "P-1 06- Oct. 12, 2019 0002590 LTD 1,049 4,196.00 1623b" Oct. 13, 2019 0002601 SCOOT TIGERAIR PTE "P-1 06- Oct. 14, 2019 0002608 LTD 1,527 6,108.00 1624b" Oct. 16, 2019 0002625 "P-106- Oct. 18, 2019 0002640 SCOOT TIGERAIR PTE 5,069 20,276.00 1625b" Oct. 20, 2019 0002657 LTD "P-106- Oct. 21,2019 0002663 1,954 7,816.00 1626b" Oct. 25, 2019 0002692 SCOOT TIGERAIR PTE "P-106- Oct. 26, 2019 0002699 LTD 823 3,292.00 2101b" Oct. 27, 2019 0002708 SCOOT TIGERAIR PTE "P-106- Oct. 28, 2019 0002715 LTD 2,531 10,124.00 21 02b" Oct. 30, 2019 0002730 SCOOT TIGERAIR PTE "P-106- Nov. 1, 2019 0002745 LTD 2,145 8,580.00 2103b" Nov.2,2019 0002757 "P-106- Nov. 3, 2019 0002762 SCOOT TIGERAIR PTE 3,497 13,988.00 2104b" Nov. 4, 2019 0002769 LTD "P-106- Nov. 30,2019 0002977 3,367 13,468.00 21 05b" Dec. 1, 2019 0002982 SCOOT TIGERAIR PTE "P-106- Dec. 2, 2019 0002989 LTD 1,460 5,840.00 2106b" Dec. 4, 2019 0003004 SCOOT TIGERAIR PTE "P-106- Dec. 6, 2019 0003020 LTD 7,475 29,900.00 21 07b" Dec. 7, 2019 0003031 SCOOT TIGERAIR PTE "P-106- Dec. 8, 2019 0003037 LTD 7,262 29,048.00 2108b" Dec. 9, 2019 0003045 "P-1 06- Dec. 11,2019 0003059 SCOOT TIGERAIR PTE 7,869 31,476.00 2140b" Sea. 24, 2019 194102 LTD "P-1 06- 2,985 11,940.00 2141b" SCOOT TIGERAIR PTE "P-1 06- LTD 5,688 22,752.00 2236b" "P-1 06- SCOOT TIGERAIR PTE 3,941 15,764.00 2237b" LTD "P-1 06- SCOOT TIGERAIR PTE 2,771 11,084.00 2238b" LTD "P-106- SCOOT TIGERAIR PTE 4,387 17,548.00 2239b" LTD "P-106- SCOOT TIGERAIR PTE 6,147 24,588.00 2517b" LTD "P-106- SCOOT TIGERAIR PTE 6,607 26,428.00 2586b" LTD "P-1 06- SCOOT TIGERAIR PTE 7,283 29,132.00 2587b" LTD "P-106- 8,008 32,032.00 2588b" SCOOT TIGERAIR PTE "P-106- LTD 7,681 30,724.00 2589b" SCOOT TIGERAIR PTE "P-106- LTD 7,426 29,704.00 2590b" SCOOT TIGERAIR PTE "P-106- LTD 7,846 31,384.00 2591 b" SCOOT TIGERAIR PTE "P-106- LTD 5,232 20,928.00 2592b" SCOOT TIGERAIR PTE "P-106- LTD 8,069 32,276.00 2593b" SCOOT TIGERAIR PTE 10,103 40,412.00 "P-106-749b" LTD SCOOT TIGERAIR PTE 1,953 7,812.00 LTD SCOOT TIGERAIR PTE LTD SCOOT TIGERAIR PTE LTD SCOOT TIGERAIR PTE LTD SHELL AIRCRAFT LIMITED

DECISION CTACaseNo.10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 60 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate in Liters at P4.00 "P-106- TIGERAIR TAIWAN CO 2070b" Oct. 27, 2019 0002712 LTD 1,751 7,004.00 "P-106- TIGERAIR TAIWAN CO 2178b" Nov. 1, 2019 0002749 LTD 2,576 10,304.00 "P-106- TIGERAIR TAIWAN CO 21 79b" Nov. 3, 2019 0002766 LTD 2,051 8,204.00 "P-106- TIGERAIR TAIWAN CO 2543b" Dec. 1, 2019 0002986 LTD 3,391 13,564.00 "P-106- TIGERAIR TAIWAN CO 2544b" Dec. 4, 2019 0003008 LTD 2,i78 8,712.00 "P-106- TIGERAIR TAIWAN CO 2545b" Dec. 6, 2019 0003024 LTD 5,593 22,372.00 "P-106- TIGERAIR TAIWAN CO 2546b" Dec. 8, 2019 0003041 LTD 2,149 8,596.00 "P-106- TIGERAIR TAIWAN CO. 1343b" Oct. 2, 2019 0002509 LTD 1,499 5,996.00 "P-106- TIGERAIR TAIWAN CO. 1344b" Oct. 4, 2019 0002525 LTD 2,525 10,100.00 "P-106- TIGERAIR TAIWAN CO. 1345b" Oct. 6, 2019 0002542 LTD 2,272 9,088.00 "P-106- TIGERAIR TAIWAN CO. 1346b" Oct. 7, 2019 0002550 LTD 5,863 23,452.00 "P-106- TIGERAIR TAIWAN CO. 1347b" Oct. 9, 2019 0002565 LTD 6,664 26,656.00 "P-106- TIGERAIR TAIWAN CO. 1714b" Oct. 10, 2019 0002572 LTD 7,716 30,864.00 "P-106- TIGERAIR TAIWAN CO. 1715b" Oct. 11, 2019 0002581 LTD 7,722 30,888.00 "P-106- TIGERAIR TAIWAN CO. 1716b" Oct. 13, 2019 0002596 LTD 1,240 4,960.00 "P-1 06- TIGERAIR TAIWAN CO. 1717b" Oct. 14, 2019 0002606 LTD 1,164 4,656.00 "P-106- TIGERAIR TAIWAN CO. 1718b" Oct. 16, 2019 0002621 LTD 6,541 26,164.00 "P-106- TIGERAIR TAIWAN CO. 1719b" Oct. 18, 2019 0002637 LTD 4,785 19,140.00 "P-106- TIGERAIR TAIWAN CO. 2069b" Oct. 20, 2019 0002653 LTD 4,834 19,336.00 Sub-total 505,907 p 2,023,628.00 C. Jet A-1 fuel sold to airlines without valid FACP and sold from TOGRI on September 2019 and January to August 2020 TIGERAIR TAIWAN CO. "P-1 06-480b" Sep. 18, 2019 54274 LTD 2,884 11,536.00 TIGERAIR TAIWAN CO. "P-1 06-481 b" Sep. 20, 2019 54289 LTD 3,411 13,644.00 TIGERAIR TAIWAN CO. "P-106-482b" Sep. 22, 2019 54305 LTD 1,192 4,768.00 SCOOT TIGERAIR PTE "P-1 06-970b" Sep. 20, 2019 54293 LTD 2,581 10,324.00 SCOOT TIGERAIR PTE "P-106-971b" Sep. 21, 2019 54299 LTD 1,836 7,344.00 SCOOT TIGERAIR PTE "P-106-972b" Sep. 22, 2019 54309 LTD 1,076 4,304.00 SCOOT TIGERAIR PTE "P-106-973b" Sep. 23, 2019 54315 LTD 4,272 17,088.00 SCOOT TIGERAIR PTE "P-106-974b" Sep. 25, 2019 54332 LTD 2,160 8,640.00 TIGERAIR TAIWAN CO. "P-1 06-751 b" Sep. 25, 2019 54328 LTD 988 3,952.00

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate in Liters at P4.00 "P-106-752b" Sep. 27, 2019 54344 TIGERAIR TAIWAN CO. 1,526 6,104.00 Sep. 27, 2019 54347 LTD "P-1 06-97 5 b" Sep. 28, 2019 54354 SCOOT TIGERAIR PTE 5,233 20,932.00 Sep. 29, 2019 54364 LTD "P-1 06-976b" Sep. 29, 2019 54360 SCOOT TIGERAIR PTE 2,037 8,148.00 Jan. 8, 2020 0003265 LTD "P-1 06-977b" Jan. 8, 2020 0003269 SCOOT TIGERAIR PTE 4,252 17,008.00 Jan. 10, 2020 0003282 LTD "P-106-753b" Jan. 10, 2020 0003278 TIGERAIR TAIWAN CO. 2,310 9,240.00 "P-1 06- Jan. 11, 2020 0003288 LTD 2959b" Jan. 12, 2020 0003296 SCOOT TIGERAIR PTE 6,894 27,576.00 "P-106- Jan. 12, 2020 0003292 LTD 2907b" Jan. 13, 2020 0003299 TIGERAIR TAIWAN CO 2,046 8,184.00 "P-106- Jan. 15, 2020 0003311 LTD 2973b" Jan. 15, 2020 0003315 TIGERAIR TAIWAN CO 2,362 9,448.00 "P-106- Jan. 17, 2020 0003328 LTD 2960b" Jan. 17, 2020 0003324 SCOOT TIGERAIR PTE 7,136 28,544.00 "P-106- Jan. 18, 2020 0003334 LTD 2961 b" Jan. 19, 2020 0003338 SCOOT TIGERAIR PTE 5,586 22,344.00 "P-106- Jan. 19,2020 3342 LTD 2974b" Jan. 20, 2020 3345 TIGERAIR TAIWAN CO 9,165 36,660.00 "P-1 06- Jan. 22, 2020 3356 LTD 2962b" Jan. 22,2020 3361 6,637 26,548.00 "P-1 06- Jan. 24,2020 3374 SCOOT TIGERAIR PTE 3065b" Jan. 24, 2020 3370 LTD 4,779 19,116.00 "P-106- Jan. 25,2020 3379 SCOOT TIGERAIR PTE 3066b" Jan. 26, 2020 3384 LTD 7,830 31,320.00 "P-106- Jan. 26, 2020 3388 SCOOT TIGERAIR PTE 2975b" Jan. 27, 2020 3391 LTD 8,531 34,124.00 "P-106- Jan. 29, 2020 3403 TIGERAIR TAIWAN CO 2976b" LTD 8,581 34,324.00 "P-106- TIGERAIR TAIWAN CO 6,761 27,044.00 3067b" LTD "P-106- 8,616 34,464.00 3068b" SCOOT TIGERAIR PTE "P-106- LTD 7,306 29,224.00 3069b" SCOOT TIGERAIR PTE "P-106- LTD 3,623 14,492.00 2977b" SCOOT TIGERAIR PTE 3,795 15,180.00 "P-1 06- LTD 3070b" TIGERAIR TAIWAN CO. 9,599 38,396.00 "P-106- LTD 3071 b" SCOOT TIGERAIR PTE 8,236 32,944.00 "P-106- LTD 3055b" SCOOT TIGERAIR PTE 10,043 40,172.00 "P-106- LTD 3056b" TIGERAIR TAIWAN CO. 8,736 34,944.00 "P-1 06- LTD 3072b" TIGERAIR TAIWAN CO. 7,468 29,872.00 "P-106- LTD 3073b" SCOOT TIGERAIR PTE 8,622 34,488.00 "P-106- LTD ' 43,852.00 3074b" SCOOT TIGERAIR PTE 22,324.00 "P-106- LTD 10,963 3057b" SCOOT TIGERAIR PTE "P-106- LTD 5,581 3087b" TIGERAIR TAIWAN CO. "P-106- LTD 3,688 14,752.00 3088b" SCOOT TIGERAIR PTE LTD SCOOT TIGERAIR PTE LTD

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 62 of65 X------------------------------------------------------------------------------------------X Exhibit Date ASRNo. Customer Volume Excise Tax Rate "P-106- in Liters at 1'4.00 3058b" "P-1 06- Jan. 29,2020 3407 TIGERAIR TAIWAN CO. 10,314 41,256.00 3092b" Jan. 31, 2020 3420 LTD "P-106- Jan. 31,2020 3416 TIGERAIR TAIWAN CO. 7,324 29,296.00 3089b" Feb. 1, 2020 3426 LTD "P-106- Feb. 2,2020 3430 SCOOT TIGERAIR PTE 3,621 14,484.00 3152b" Feb. 2, 2020 3435 LTD "P-106- Feb. 3,2020 3437 SCOOT TIGERAIR PTE 2,551 10,204.00 3153b" Feb. 5, 2020 3449 LTD "P-106- Feb. 5, 2020 3453 SCOOT TIGERAIR PTE 1,615 6,460.00 3111 b" Feb. 7,2020 3462 LTD "P-106- Feb. 7, 2020 3466 TIGERAIR TAIWAN CO. 6,683 26,732.00 3154b" Feb. 8, 2020 3471 LTD "P-I06- Feb. 9,2020 3476 SCOOT TIGERAIR PTE 1,600 6,400.00 3155b" Feb. 9,2020 3480 LTD "P-106- Feb. 10, 2020 3483 SCOOT TIGERAIR PTE 5,986 23,944.00 3112b" Feb. 12, 2020 3494 LTD "P-106- Feb. 12, 2020 3498 TIGERAIR TAIWAN CO. 5,128 20,512.00 3156b" Feb. 14, 2020 7007 LTD "P-106- Feb. 14, 2020 7011 SCOOT TIGERAIR PTE 843 3,372.00 3113b" Feb. 15, 2020 7016 LTD "P-106- Feb. 16, 2020 7021 TIGERAIR TAIWAN CO. 3,078 12,312.00 3157b" Feb. 17, 2020 7027 LTD "P-106- Feb. 19, 2020 7039 SCOOT TIGERAIR PTE 3,937 15,748.00 3158b" Feb. 21, 2020 7051 LTD "P-106- Feb. 22, 2020 7060 SCOOT TIGERAIR PTE 5,342 21,368.00 3114b" Feb. 23,2020 7064 LTD Feb. 24, 2020 7070 TIGERAIR TAIWAN CO. 2,015 8,060.00 "P-106- Feb. 26,2020 7083 LTD 3159b" Feb. 28, 2020 7095 SCOOT TIGERAIR PTE 1,838 7,352.00 "P-106- Feb. 29,2020 7103 LTD 3160b" SCOOT TIGERAIR PTE 3,701 14,804.00 "P-106- LTD 3200b" TIGERAIR TAIWAN CO. 1,613 6,452.00 "P-106- LTD 3161b" SCOOT TIGERAIR PTE 2,665 10 660.00 "P-106- LTD 3201 b" TIGERAIR TAIWAN CO. 1,724 6,896.00 "P-106- LTD 3248b" SCOOT TIGERAIR PTE 3,314 13,256.00 "P-106- LTD 3249b" SCOOT TIGERAIR PTE 3,443 13,772.00 "P-106- LTD 3250b" SCOOT TIGERAIR PTE 6,194 24,776.00 "P-106- LTD 3251b" SCOOT TIGERAIR PTE 3,417 13,668.00 "P-106- LTD 3252b" SCOOT TIGERAIR PTE 4,654 18,616.00 "P-106- LTD 3253b" SCOOT TIGERAIR PTE 3,895 15,580.00 "P-1 06- LTD 3254b" SCOOT TIGERAIR PTE 3,809 15,236.00 "P-106- LTD 3255b" SCOOT TIGERAIR PTE 2,303 9,212.00 "P-106- LTD 3256b" SCOOT TIGERAIR PTE 6,402 25,608.00 "P-106- LTD 3257b" SCOOT TIGERAIR PTE 3,389 13,556.00 "P-1 06- LTD 3258b" SCOOT TIGERAIR PTE 5,230 20,920.00 LTD

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 63 of65 x------------------------------------------------------------------------------------------x Exhibit Date ASRNo. Customer Volume Excise Tax Rate ''P-106- SCOOT TIGERAIR PTE in Liters at 1'4.00 3320b" LTD "P-106- Mar. 1, 2020 7108 SCOOT TIGERAIR PTE 2,749 10,996.00 3321b" Mar. 2, 2020 7114 LTD "P-106- Mar. 4, 2020 7124 SCOOT TIGERAIR PTE 2,691 10,764.00 3322b" Mar. 6, 2020 7134 LTD "P-1 06- Mar. 7, 2020 7140 SCOOT TIGERAIR PTE 4,208 16,832.00 3323b" Mar. 8, 2020 7145 LTD "P-106- Mar. 9, 2020 7150 SCOOT TIGERAIR PTE 1,742 6,968.00 3324b" Mar. 11, 2020 7159 LTD "P-1 06- Mar. 13, 2020 7168 SCOOT TIGERAIR PTE 1,547 6,188.00 3325b" Mar. 14, 2020 7175 LTD "P-106- Mar. 15, 2020 7178 SCOOT TIGERAIR PTE 2,971 11,884.00 3326b" Mar. 16, 2020 7183 LTD "P-106- Mar. 18, 2020 7190 SCOOT TIGERAIR PTE 1,693 6,772.00 3327b" Mar. 20, 2020 7197 LTD "P-106- SCOOT TIGERAIR PTE 2,199 8,796.00 3328b" LTD "P-1 06- SCOOT TIGERAIR PTE 1,433 5,732.00 3329b" LTD "P-1 06- SCOOT TIGERAIR PTE 3,083 12,332.00 3330b" LTD "P-106- SCOOT TIGERAIR PTE 2,583 10,332.00 3376b" LTD "P-106- SCOOT TIGERAIR PTE 1,767 7,068.00 3377b" LTD "P-1 06- SCOOT TIGERAIR PTE 2,111 8,444.00 3378b" LTD 2,577 10,308.00 Sub-total Grand Total 359,324 p 1,437,296.00 5,893,246 1'23,572,984.00 In sum, petitioner sufficiently proved that the excise taxes it paid for the imported and locally manufactured Jet A-1 fuel and subsequently sold to tax-exempt international air carriers were erroneous, and thus, refundable, pursuant to Sections 204 and 229 of the NIRC of 1997, as amended, but only in the reduced amount of P207,765,676.00, computed as follows: Particulars Volume in Amount of Volume/ Amount of Excise Tax Liters Excise Taxes Claim per Petition for Review Paid at P4.00 Less: Sales of Jet A-1 fuel to 57,834,665 p 231,338,660.00 international airlines with 5,028,015 (20, 112,060.00) valid FACP but sold from TOGRI on September 2019 505,907 (2,023,628.00) and January to ALtgUst 2020 359,324 ( 1,437 ,296.00) Sales made to international air carriers without valid FACP Sales of Jet A-1 fuel sold to airlines without valid FACP and sold from TOGRI on

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 64 of65 X------------------------------------------------------------------------------------------X September 2019 and January 51,941,419 P207,765,676.00 to August 2020 Volume/ Amount of Refundable Excise Taxes WHEREFORE, in light of the foregoing, the instant Petition for Review is PARTIALLY GRANTED. Accordingly, respondent is ORDERED TO REFUND OR ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner in the amount of P207,765,676.00, representing excise taxes paid from August 2019 to January 2020 on Jet A-1 fuel sold to international air carriers for use or consumption outside the Philippines during the period from September 2019 to August 2020. SO ORDERED. ~It#~ LANEE S. CUI-DA'VID Associate Justice WE CONCUR: 0 Presiding Justice On Leave JEAN MARIE A. BACORRO-VILLENA Associate Justice

DECISION CTA Case No. 10611 Pilipinas Shell Petroleum Corporation v. Commissioner of Internal Revenue Page 65 of65 x------------------------------------------------------------------------------------------x 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. 0 Presiding Justice