CBK Power Company Limited v. Commissioner of Internal Revenue

SPECIAL THIRD DIVISION [C.T.A. CASE NOS. 7771 & 7814. May 6, 2016.] CBK POWER COMPANY LIMITED , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . AMENDED DECISION COTANGCO-MANALASTAS , J p : Submitted anew for decision are the consolidated Petitions for Review docketed as CTA Case Nos. 7771 & 7814, pursuant to the ruling of the Supreme Court dated September 30, 2014 in G.R. No. 205353 remanding these cases to the Court of Tax Appeals (CTA) for the determination and computation of the amounts valid for refund or the issuance of a tax credit certificate. The consolidated Petitions for Review pray for the issuance of tax credit certificates (TCC) allegedly representing unutilized input value-added taxes (VAT). For CTA Case No. 7771, petitioner's tax credit claim amounts to P7,559,943.44 covering period January 1, 2006 to March 31, 2006; 1 and for CTA Case No. 7814, petitioner claims the amount of P36,246,606.28 covering the period April 1, 2006 to December 31, 2006. 2 THE FACTS The Court reiterates the relevant facts of the case as follows: Petitioner is a VAT-registered partnership organized and existing under and by virtue of the Philippine laws. The sole purpose of which is to engage in all aspects of (a) design, financing, construction, testing, commissioning, operation, maintenance, management and ownership of Kalayaan II pumped-storage hydroelectric power plant, the new Caliraya Spillway, and other assets located in the Province of Laguna, and (b) rehabilitation, upgrade, expansion, testing, commissioning, operation, maintenance and management of the Caliraya, Botocan and Kalayaan I hydroelectric power plants and their related facilities, located in the Province of Laguna. 3 On March 17, 2006, BIR issued BIR Ruling No. DA-146-2006, confirming petitioner's claim that as an entity engaged in hydropower generation, its billings/fees for the sale of electricity to NPC are subject to VAT at zero percent (0%) rate, under Section 108 (B) (7) of the Tax Code of 1997, as amended by Republic Act 9337 (R.A. 9337). 4 Petitioner filed with the Bureau of Internal Revenue (BIR) its Monthly VAT Declarations and Quarterly VAT Returns for the period January 1, 2006 to December 31, 2006 on the following dates: 5 2006 Original VAT Return Amended VAT Return Taxable (Date filed) (Date filed) Quarter 1st April 25, 2006 December 28, 2007 March 31, 2008 2nd July 25, 2006 April 18, 2008 3rd October 20, 2006 May 7, 2008 4th January 24, 2007 July 21, 2008 Petitioner's Amended Quarterly VAT Returns for the four quarters of 2006 reported the following input tax credits: 6 CAIHTE Input Tax Credits for the period January 1 to December 31, 2006 2006 Purchase of Domestic Importation Domestic Services Total Input Taxable Capital Purchases of of Goods Purchase of Rendered by Tax Credits Quarter Goods Goods Other Other than Services Non- exceeding than Capital Capital Residents P1Million Goods Goods 1st 1,870,700.70 1,821,359.38 556,816.00 4,151,387.81 968,642.68 9,368,906.57 2nd 1,346,348.83 1,209,055.08 1,152,424.00 5,797,606.67 1,199,547.36 10,704,981.94 3rd 2,998,466.11 1,425,019.73 810,906.00 10,921,541.86 302,627.14 16,458,560.84 4th 344,377.46 1,620,670.63 654,763.00 8,586,528.36 1,608,644.90 12,814,984.35 _ TOTAL 6,559,893.10 6,076,104.82 3,174,909.00 29,457,064.70 4,079,462.08 49,347,433.70 =========== =========== =========== =========== =========== =========== Also, the Amended Quarterly VAT returns for 2006 reported zero-rated sales as follows: 7 Zero-Rated Sales for the period January 1 to December 31, 2006 2006 Taxable Quarter Zero-Rated Sales/Receipts 1st 1,583,390,407.46 2nd 1,648,748,033.50 3rd 1,599,882,354.64 4th 1,547,858,529.27 TOTAL 6,379,879,324.87 ============== Out of the reported total input tax for the period January 1 to December 31, 2006, amounting to P49,347,433.70, petitioner is seeking issuance of TCCs in the amount of P43,806,549.72 (i.e., P7,559,943.44 for CTA Case No. 7771, and P36,246,606.28 for CTA Case No. 7814) On March 31, 2008, petitioner filed an administrative claim 8 with the BIR Revenue District Office (RDO) No. 55 of Laguna for the issuance of a TCC in the total amount of P7,559,943.44, allegedly representing its unutilized input taxes for the period January 1, 2006 to March 31, 2006, pursuant to Section 112 (A) of the NIRC of 1997, as amended by R.A. 9337 . 9 Petitioner filed on April 23, 2008 a Petition for Review 10 with the CTA, docketed as CTA Case No. 7771, alleging inaction of respondent on its administrative claim. 11 On July 23, 2008, petitioner filed another administrative claim 12 with the BIR RDO No. 55 of Laguna for the issuance of a TCC in the amount of P36,246,606.28, allegedly representing its unutilized input taxes for the period April 1, 2006 to December 31, 2006, pursuant to Section 112 (A) of the NIRC of 1997, as amended by R.A. 9337 . 13 The following day, July 24, 2008, petitioner filed a Petition for Review 14 with the CTA, docketed as CTA Case No. 7814, involving its tax credit claim in the amount of P36,246,606.28. 15 The CTA Former Third Division resolved to consolidate CTA Case Nos. 7771 and 7814 on November 27, 2008. Petitioner presented and offered its pieces of evidence and witnesses during trial, while respondent rested its case without presenting any evidence or witnesses. On December 3, 2010, the CTA Former Third Division dismissed the consolidated Petitions for Review for having been prematurely filed 16 applying the Supreme Court Decision in Commissioner of Internal Revenue vs. Aichi Forging Company of Asia, Inc. (Aichi) dated October 6, 2010. 17 Petitioner's Motion for Reconsideration was denied for lack of merit on April 7, 2011. Petitioner appealed the above decision with the CTA En Banc by way of a Petition for Review docketed as EB Case No. 758. On October 4, 2012, the CTA En Banc denied the Petition for lack of merit. 18 The Court En Banc likewise denied Petitioner's Motion for Reconsideration for lack of merit on January 15, 2013. 19 Petitioner challenged the denial of its claim by filing before the Supreme Court a Petition for Review on Certiorari docketed as G.R. No. 205353, 20 consolidated with another Petition for Review on Certiorari docketed as G.R. No. 202066. 21 Meanwhile, on February 12, 2013, the Supreme Court issued its decision on the consolidated cases of Commissioner of Internal Revenue vs. San Roque Power Corporation ; Taganito Mining Corporation vs. Commissioner of Internal Revenue ; and Philex Mining Corporation vs. Commissioner of Internal Revenue , 22 (San Roque) wherein it affirmed with qualification the decision in the Aichi case. The Supreme Court held therein that compliance with the 120-day and the 30-day periods under Section 112 of the National Internal Revenue Code of 1997 (1997 NIRC) is mandatory and jurisdictional, save for those VAT refund cases that were prematurely filed ( i.e. , before the lapse of the 120-day period) with the CTA between December 10, 2003 (when the BIR Ruling No. DA-489-03 was issued) and October 6, 2010. Effectively, the San Roque case created a window period. ( i.e. , from December 10, 2003 to October 6, 2010), where judicial claims that did not comply with the mandatory 120-day period, but still within the 2-year prescriptive period, shall be entertained. Since the instant judicial claims were filed within the window created in San Roque , the Supreme Court issued a Decision on September 30, 2014, remanding the above-captioned consolidated cases to the CTA, the dispositive portion of which reads: " WHEREFORE , the petitions docketed as G.R. Nos. 202066 and 205353 are GRANTED . Accordingly, the Court of Tax Appeals En Banc's February 1, 2012 decision and May 24, 2012 resolution assailed in the petition docketed as G.R. No. 202066 and the Court of Tax Appeals En Banc's October 4, 2012 decision and January 15, 2013 resolution assailed in the petition docketed as G.R. No. 205353 are REVERSED and SET ASIDE . DETACa The consolidated cases are REMANDED to the Court of Tax Appeals for the determination and computation of the amounts valid for refund or the issuance of a tax credit certificate." 23 On March 24, 2015, this Court received an Entry of Judgment issued by the Supreme Court stating that the September 30, 2014 Decision in the cases docketed as G.R. Nos. 202066 and 205353 has become final and executory on November 4, 2014. On January 22, 2016, this Court directed the parties to submit a manifestation informing this Court of any supervening event which may have transpired that would affect the disposition of the consolidated cases; and whether there is a need to conduct further proceedings. 24 Petitioner filed its Manifestation 25 on February 11, 2016. Respondent failed to file her Manifestation. 26 Hence, the consolidated cases docketed as CTA Case Nos. 7771 and 7814 were submitted anew for decision on February 23, 2016, in compliance with the ruling of the Supreme Court dated September 30, 2014 in G.R. No. 205353 remanding the above-captioned cases to the CTA for the determination and computation of the amounts valid for refund or the issuance of a tax credit certificate. ISSUE Whether petitioner is entitled to the issuance of a TCC in the total amount of P43,806,549.72, representing unutilized input VAT on local purchases and/or importation of goods and services and payments for services rendered by non-residents and purchases of capital goods attributable to its zero-rated sales for the period January 1, 2006 to December 31, 2006. RULING OF THE COURT Under Section 112 (A) of the National Internal Revenue Code of 1997, as amended by R.A. 9337 , and numerous jurisprudence, following are the requisites for tax refund or issuance of TCC for unutilized input VAT provided: (1) the taxpayer is VAT registered; (2) the taxpayer is engaged in zero-rated or effectively zero-rated sales; (3) the input taxes were incurred or paid; (4) the input taxes have not been applied against output taxes during and in the succeeding quarters; (5) the input taxes claimed are attributable to zero-rated or effectively zero-rated sales; (6) the claim is filed within the prescriptive period. The sixth requisite pertaining to the timeliness of petitioner's input VAT claims shall no longer be discussed in view of the ruling of the Supreme Court finding the instant petitions to have been filed within the window created in San Roque , and thus, exempted from the strict application of the 120-day mandatory period under Section 112 of the 1997 NIRC. Anent the first requisite , it is undisputed that, as agreed by the parties in their Joint Stipulation of Facts and Issues 27 which was approved by this Court on February 9, 2009, petitioner is registered as a value-added tax entity with TIN/VAT No. 205-760-474 in accordance with the NIRC of 1997, as amended , and was issued BIR Certificate of Registration OCN 1RC0000050243 dated April 10, 2000 by the BIR Revenue District Office No. 55 (San Pablo City, Laguna), which was updated on May 11, 2005, and as a consequence, petitioner was issued BIR Certificate of Registration OCN IRC0000195405. With regard to the second requisite , pertinent is the provision under Section 108 (B) (7) of the NIRC of 1997, as amended by Republic Act 9337 (R.A. 9337), which provides that sale of power generated through sources or energy is among the transactions subject to zero percent (0%) VAT rate, to wit: "(7) Sale of power or fuel generated through renewable sources of energy such as, but not limited to, biomass, solar, wind, hydropower, geothermal, ocean enemy, and other emerging energy sources using technologies such as fuel cells and hydrogen fuels. Also, Section 4.108-5 (b) (7) of Revenue Regulations No. 16-2005, which implements the above-quoted provisions, qualified the applicability of such zero-rating as follows: SEC. 4.108-5. Zero-Rated Sale of Services . xxx xxx xxx (b) Transactions Subject to Zero Percent (0%) VAT Rate. The following services performed in the Philippines by a VAT-registered person shall be subject to zero percent (0%) VAT rate: xxx xxx xxx (7) Sale of power or fuel generated through renewable sources of energy such as, but not limited to, biomass, solar, wind, hydropower, geothermal and steam, ocean energy, and other emerging sources using technologies such as fuel cells and hydrogen fuels; Provided , however, that zero-rating shall apply strictly to the sale of power or fuel generated through sources of energy, and shall not extend to the sale of services related to the maintenance or operation of plants generating said power. The pasties have settled in their Joint Stipulation of Facts and Issues 28 that: petitioner is a special purpose entity, the sole purpose of which is to engage in all aspects of (a) the design, financing, construction, testing, commissioning, operation, maintenance, management and ownership of Kalayaan II pumped-storage hydroelectric power plant, the new Caliraya Spillway, and other assets located in the Province of Laguna, and (b) the rehabilitation, upgrade, expansion, testing, commissioning, operation, maintenance and management of the Caliraya, Botocan and Kalayaan I hydroelectric power plants and their related facilities located in the Province of Laguna, as shown by petitioner's SEC Registration and Amended Articles of Partnership; 29 the Energy Regulatory Commission (ERC) issued Certificates of Compliance to petitioner as a generation company pursuant to the Implementing Rules and Regulations of R.A. 9136, otherwise known as the "Electric Power Industry Reform Act of 2007" (EPIRA); 30 the respondent BIR issued BIR Ruling No. DA-146-2006 confirming that the billings of the petitioner, an entity engaged in hydropower generation, to National Power Corporation (NPC) for the sale of electricity generated through hydropower, are subject to VAT at zero percent (0%) under Section 108 (B) (7) of the NIRC of 1997, as amended by R.A. 9337, viz. : 31 aDSIHc "From the foregoing circumstances, there is no dispute that CBK is primarily organized to engage in power generation business, specifically in hydropower generation, i.e. , generating/supplying electric power generated through hydropower, a renewable source of energy. This is fortified by the Certificate of Compliance issued by the Energy Regulatory Commission (ERC) that CBK is indeed a hydropower generation company. Thus, the billings of CBK for its sale of electricity to NPC, designated under the BROT Agreement as Capital Recovery Fees and O&M Fees, are subject to zero percent (0%) VAT." There is no doubt that petitioner qualifies as a taxpayer engaged in zero-rated or effectively zero-rated sales pursuant to Section 108 (B) (7) of the NIRC of 1997, as amended by R.A. 9337 . In its Original and Amended Quarterly VAT Returns 32 for the four quarters of taxable year 2006, petitioner reported zero-rated sales/receipts of P6,379,879,324.87. As verified from the supporting Schedules of Sales 33 to and Collections 34 from NPC and the corresponding VAT zero-rated sales invoices 35 and official receipts 36 (ORs), petitioner's zero-rated sales/receipts of P6,379,879,324.87 were duly substantiated, hence, the amount of input VAT attributable to the entire zero-rated sales shall be considered for refund. Per its Amended Quarterly VAT Returns for the four quarters of 2006, petitioner reflected input VAT in the total amount of P44,005,101.83, broken down as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Particulars (Exhibit H-3) (Exhibit H-5) (Exhibit H-7) (Exhibit H-10) Total Input Tax Deferred on Capital Goods Exceeding P1M from Previous Quarter (Line 20B) P1,746,591.87 P3,447,878.52 P4,560,382.07 P7,170,871.97 P16,925,724.43 Add: Input Tax on Purchases of Capital Goods Exceeding P1M ( Line 21D ) 1,870,700.70 1,346,348.83 2,998,466.11 344,377.46 6,559,893.10 Total P3,617,292.57 P4,794,227.35 P7,558,848.18 P7,515,249.43 P23,485,617.53 Less: Input Tax on Purchases of Capital Goods exceeding P1M deferred for the succeeding period (Line 23A) 3,447,878.52 4,560,382.07 7,170,871.97 7,088,923.74 22,268,056.30 Amortization of Input tax on Purchases of Capital Goods exceeding P1M P169,414.05 P233,845.28 P387,976.21 P426,325.69 P1,217,561.23 Add: Input taxes on Current Purchases Domestic Purchases of Goods Other than Capital Goods (Line 21F) 1,821,359.38 1,209,055.08 1,425,019.73 1,620,670.63 6,076,104.82 Importation of Goods Other than Capital Goods (Line 21H) 556,816.00 1,152,424.00 810,906.00 654,763.00 3,174,909.00 Domestic Purchases of Services (Line 21J) 4,151,387.81 5,797,606.67 10,921,541.86 8,586,528.36 29,457,064.70 Services rendered by Non-residents (Line 21L) 968,642.68 1,199,547.36 302,627.14 1,608,644.90 4,079,462.08 Total Input Tax on current purchases P7,498,205.87 P9,358,633.11 P13,460,094.73 P12,470,606.89 P42,787,540.60 Total Input Tax for the period P7,667,619.92 P9,592,478.39 P13,848,070.94 P12,896,932.58 P44,005,101.83 ============ ============ ============ ============ ============ As regards the third requisite , petitioner submitted various suppliers' invoices, official receipts, and other related documents 37 to prove that it incurred/paid the aforementioned input VAT. Upon examination of the said documents, the Court-commissioned Independent CPA (ICPA), Constantino Guadalquiver & Co. through its partner, Mr. Edwin F. Ramos, noted the following exceptions: 38 ATICcS Amount of Input Reference Findings VAT (ICPA Report) A. Exceptions on input VAT on current purchases of goods/services other than capital goods 1 Domestic purchases of goods and services P108,111.88 Annex 1-1Q-C-1; supported by VAT invoice/OR with Annex 1-2Q-C-1; incorrect/incomplete/erased TIN Annex 1-3Q-C-1; Annex 1-4Q-C-1 2 Domestic purchases of goods and services 5,958.49 Annex 1-1Q-C-2; supported by VAT invoices/ORs with erasure Annex 1-3Q-C-2; on the date/name/address Annex 1-4Q-C-2 3 Domestic purchases of goods supported by 62,181.50 Annex 1-1Q-C-3; documents other than VAT invoices Annex 1-2Q-C-2; Annex 1-3Q-C-3; Annex 1-4Q-C-3 4 Domestic purchases of goods supported by VAT 120,925.38 Annex 1-1Q-C-4; invoices but not the original copy Annex 1-2Q-C-3; Annex 1-3Q-C-4; Annex 1-4Q-C-4 5 Domestic purchases of goods supported by VAT 220,266.58 Annex 1-1Q-C-5; invoices issued in the name of CBK, CBK-New Annex 1-2Q-C-4; Spillway, CBK-PCL Annex 1-3Q-C-5; Annex 1-4Q-C-5 6 Domestic purchases of services supported by 1,676,677.11 Annex 1-1Q-C-6; documents other than VAT ORs Annex 1-2Q-C-5; Annex 1-3Q-C-6; Annex 1-4Q-C-6 7 Domestic purchases of services supported by VAT 4,856.58 Annex 1-1Q-C-7; ORs but not the original copy Annex 1-4Q-C-7 8 Domestic purchases of services supported by VAT 8,473.18 Annex 1-1Q-C-8; ORs not issued in the Company's name Annex 1-2Q-C-6; Annex 1-3Q-C-7; Annex 1-4Q-C-8 9 Domestic purchases of services supported by VAT 1,108,041.97 Annex 1-1Q-C-9; ORs issued in the name of CBK, CBK-New Annex 1-2Q-C-7; Spillway, CBK-PCL Annex 1-3Q-C-8; Annex 1-4Q-C-9 10 Domestic purchases of services supported by tape 30,381.63 Annex 1-2Q-C-8; receipts without the Company's name and/or TIN Annex 1-3Q-C-9; Annex 1-4Q-C-10 11 Importations of goods supported by documents 275,131.00 Annex 1-1Q-C-10 other than the original copy of IEIRDs 12 Domestic purchases of goods supported by TIN # 54,306.62 Annex 1-1Q-C-11; only, TIN-V; TAN-V; TAN-VAT; TIN-NV/NON Annex 1-2Q-C-9; VAT; stamped/handwritten TIN-V/VAT invoices Annex 1-3Q-C-10; Annex 1-4Q-C-11 13 Domestic purchases of goods supported by tape 38,088.61 Annex 1-4Q-C-12 receipts without the Company's name and/or TIN 14 Domestic purchases of goods supported by VAT 5,703.97 Annex 1-1Q-C-12 invoices but without invoice date 15 Domestic purchases of goods supported by VAT 80,330.08 Annex 1-1Q-C-13; invoices but not dated within the VAT-taxable year Annex 1-3Q-C-11; Annex 1-4Q-C-13 16 Domestic purchase of goods supported by VAT 48.21 Annex 1-2Q-C-10 invoice but is not ATP registered 17 Domestic purchases of services supported by TIN # 390,608.61 Annex 1-1Q-C-14; only, TIN-V; TAN-V; TAN-VAT; TIN-NV/NON Annex 1-2Q-C-11; VAT ORs; stamped/handwritten TIN-V/VAT Annex 1-3Q-C-12; Annex 1-4Q-C-14 18 Domestic purchases of services supported by VAT 152,606.56 Annex 1-1Q-C-15 ORs but without OR date 19 Domestic purchases of services supported by VAT 40,209.94 Annex 1-3Q-C-13; ORs not dated within the VAT-taxable year Annex 1-4Q-C-15 20 Domestic purchases of services supported by VAT 5,160.00 Annex 1-4Q-C-16 ORs with alterations in the name of the Company without countersignature 21 Domestic purchases of services supported by VAT 110,845.61 Annex 1-1Q-C-16; ORs but is not ATP registered Annex 1-2Q-C-12; Annex 1-3Q-C-14; Annex 1-4Q-C-17 22 Importations of goods supported by original IEIRDs 73,785.00 Annex 1-1Q-C-17 and/or original BOC ORs and/or original LBP ORs but with no date indicated 23 Overclaimed input tax on domestic purchases of 10,034.66 Annex 1-1Q-C-18; goods/services due to erroneous computation Annex 1-2Q-C-13; Annex 1-3Q-C-15; Annex 1-4Q-C-18 24 Foreign exchange on foreign currency denominated 101,839.59 Annex 1-1Q-C-19; purchases of goods and services- overstatement Annex 1-2Q-C-14; Annex 1-3Q-C-16; Annex 1-4Q-C-19 25 Domestic purchases of goods supported by VAT 32,496.98 Annex 1-1Q-C-20; invoices with alteration in the amount written in Annex 1-2Q-C-15; the invoices Annex 1-3Q-C-17; Annex 1-4Q-C-20 26 Domestic purchases of goods supported by VAT 2,588.68 Annex 1-1Q-C-21; invoices with alteration in the date written in the Annex 1-4Q-C-21 invoices 27 Domestic purchases of services supported by VAT 66,875.61 Annex 1-1Q-C-22 ORs with alteration in the date written in the ORs 28 Domestic purchases of goods supported by VAT 4,687.49 Annex 1-4Q-C-22 invoices not issued in the Company's name 29 Domestic purchases of goods supported by VAT 570,580.32 Annex 1-1Q-C-23; invoices issued in the Company's name without its Annex 1-2Q-C-16; TIN and/or address Annex 1-3Q-C-18; Annex 1-4Q-C-23 30 Domestic purchases of services supported by VAT 4,176,615.84 Annex 1-1Q-C-24; ORs issued in the Company's name without its TIN Annex 1-2Q-C-17; and/or address Annex 1-3Q-C-19; Annex 1-4Q-C-24 31 Unclaimed input VAT on domestic purchases of 198,552.10 Annex 1-1Q-C-25; goods and services Annex 1-2Q-C-18; Annex 1-3Q-C-20; Annex 1-4Q-C-25 32 Supporting documents not available 445,141.74 Annex 1-1Q-C-26; Annex 1-2Q-C-19; Annex 1-3Q-C-21; Annex 1-4Q-C-26 Total P10,182,111.52 ============ B. Exceptions on input VAT on current purchases of capital goods exceeding P1M 1 Domestic purchases of capital goods supported by 225,637.11 Annex 2-3Q-C-1 documents other than VAT invoices 2 Domestic purchases of capital goods supported by 622,155.68 Annex 2-1Q-C-1; VAT invoices but not the original copy Annex 2-3Q-C-2 3 Domestic purchases of goods supported by 25,689.76 Annex 2-2Q-C-1 documents other than VAT ORs 4 Domestic purchases of capital goods supported by 38,640.00 Annex 2-3Q-C-3 VAT ORs without OR dates 5 Domestic purchases of capital goods whose input 51,428.58 Annex 2-3Q-C-4 VAT is claimed in the quarter ahead of the actual quarter the OR is dated 6 Domestic purchases of capital goods supported by 1,416,697.00 Annex 2-1Q-C-2; VAT invoices issued in the Company's name Annex 2-2Q-C-2; without TIN and/or address Annex 2-3Q-C-5; Annex 2-4Q-C-1 7 Domestic purchases of capital goods supported by 2,449,121.50 Annex 2-1Q-C-3; VAT ORs issued in the Company's name without Annex 2-2Q-C-3; TIN and/or address Annex 2-3Q-C-6; Annex 2-4Q-C-2 8 Overclaimed input tax on domestic purchases of 1.60 Annex 2-1Q-C-4 capital goods due to erroneous computation 9 Effect of foreign exchange difference on foreign 22,132.77 Annex 2-1Q-C-5; currency denominated purchases of capital goods- Annex 2-2Q-C-4 overstatement 10 Supporting documents not available 48,214.29 Annex 2-4Q-C-3 Total P4,899,718.29 =========== The Court subscribes to the exceptions found by the ICPA on the input VAT on current purchases of goods/services other than capital goods (item A above) in the amount of P10,182,111.52 for non-compliance with the substantiation requirements prescribed under Sections 110 (A), 113 (A) and (B), 237 and 238 of the NIRC of 1997, as amended, in relation to Sections 4.110-1, 4.110-2, 4.110-8 and 4.113-1 of RR No. 16-05. With respect to the P4,899,718.29 exceptions on input VAT on current purchases of capital goods exceeding P1M, the overclaimed input VAT due to erroneous computation of P1.60 (item B.8 above) shall be disallowed instantaneously. As to the remaining amount of P4,899,716.69, only the amortized portion for 2006 in the amount of P617,032.24 shall be disallowed from petitioner's claim pursuant to Section 110 (A) of the NIRC of 1997, as amended, and as implemented by Section 4.110-3 of RR No. 16-2005. Below is the breakdown of the P617,032.24 amortized input VAT from items B.1 to B.7 & B.9 to B.10 above: Findings Input VAT Amortized Amount Input VAT 39 B.1 Domestic purchases of capital goods supported P225,637.11 P22,563.71 by documents other than VAT invoices 2 Domestic purchases of capital goods supported 622,155.68 96,240.50 by VAT invoice but not the original copy 3 Domestic purchase of goods supported by 25,689.76 2,997.14 documents other than VAT OR 4 Domestic purchase of capital goods supported 38,640.00 3,220.00 by VAT OR without OR date 5 Domestic purchase of capital goods whose input 51,428.58 3,428.57 VAT is claimed in the quarter ahead of the actual quarter the OR is dated 6 Domestic purchase of capital goods supported 1,416,697.00 144,706.54 by VAT invoice issued in the Company's name without TIN and/or address 7 Domestic purchase of capital goods supported 2,449,121.50 338,565.41 by VAT OR issued in the Company's name without TIN and/or address 9 Effect of foreign exchange difference on foreign 22,132.77 3,703.23 currency denominated purchases of capital goods-overstatement 10 Supporting documents not available 48,214.29 1,607.14 Total P4,899,716.69 P617,032.24 =========== =========== In addition, the following input VAT claim in the amount of P1,726,336.53 (P1,359,061.58 plus P367,274.95) shall also be disallowed for petitioner's failure to meet the substantiation requirements prescribed under the above-mentioned laws and regulations: Exhibit Vendor Name OR/Invoic OR/Invoice Input VAT "W-" e No. Date 1) Input VAT supported by VAT invoices and ORS wherein the VAT amount was not separately indicated 1Q-148 GLUCS Business Enterprises 0304 3/16/2006 P2,006.79 1Q-164 High Grip Auto Center 2736 4/7/2006 565.71 1Q-243 Molina General Builders 701 1/31/2006 5,910.29 1Q-244 Molina General Builders 702 1/31/2006 12,769.85 1Q-245 Molina General Builders 703 2/16/2006 5,493.78 1Q-744 Top-rigid Ind Safety Supply, Inc. 12764 1/30/2006 36,136.36 1Q-746 Twin V Tech Systems & Services 024 2/10/2006 14,300.46 4Q-61 Coledan Engineering 0001 11/7/2006 9,600.00 4Q-87 Eagle Star Ind Sales Corp. 24473 12/8/2006 9,852.00 4Q-221 Industrial Solutions & Technical 0682 12/15/2006 8,040.00 Services Corp. subtotal 104,675.24 2) Input VAT on domestic purchases of goods supported by VAT invoices issued not in the name of petitioner 1Q-89 & Eastern Aluminum Glass Supply 11108 2/22/2006 10,283.57 1Q-543 1Q-90 & Eastern Aluminum Glass Supply 10891 1/25/2006 818.18 1Q-544 1Q-428 & Rich Hope Enterprises 0611 1/11/2006 770.00 1Q-717 1Q-437 & Royal Star Appliance Marketing, Inc. 10146 1/17/2006 2,763.64 1Q-724 1Q-480 & VMA home Appliance, Co. 18344 1/18/2006 2,448.18 1Q-752 1Q-481 & VMA home Appliance, Co. 18663 2/15/2006 231.43 1Q-753 1Q-406 & R. Ong Shell gasoline Station various various 9,875.20 1Q-706 2Q-248 & Novee Merchandise 137799 5/8/2006 428.57 2Q-598 2Q-373 & Reign-NAN Sales Industry 3742 4/11/2006 9,000.00 2Q-639 2Q-374 & Reign-NAN Sales Industry 3741 4/10/2006 12,780.00 2Q-640 2Q-441 & Velphram Distributors 1058 4/21/2006 1,056.36 2Q-676 2Q-442 & Velphram Distributors 1964 4/5/2006 720.00 2Q-676 2Q-443 & Velphram Distributors 1069 5/10/2006 948.64 2Q-677 2Q-444 & VMA home Appliance, Co. 18947 4/21/2006 964.29 2Q-678 2Q-365 & R. Ong Shell gasoline Station various 7/3/2006 8,652.59 2Q-630 2Q-367 & R. Ong Shell gasoline Station various 6/16/2006 5,614.43 2Q-631 2Q-368 & R. Ong Shell gasoline Station various 6/22/2006 7,014.44 2Q-632 2Q-29 & Bien Venue General Supplies & 13707 3/28/2006 28,313.34 2Q-472 Contractors 3Q-175 & Holland Blooms Flower Shops, Inc. 17741 8/15/2006 267.86 3Q-627 4Q-284 & Modern Supreme Smart Shop, Inc. 25042 10/17/2006 253.93 4Q-772 4Q-355 & Novee Merchandise 141598 9/11/2006 216.00 4Q-787 4Q-356 & Novee Merchandise 143682 11/6/2006 996.00 4Q-788 4Q-357 & Novee Merchandise 145871 10/9/2006 549.00 4Q-788 4Q-659 & VMA Home Appliance, Co. 20381 11/24/2006 407.14 4Q-859 4Q-391 & P.I General Merchandise 29448 10/27/2006 669.64 4Q-801 4Q-393 & P.I General Merchandise 5529 12/7/2016 669.64 4Q-802 4Q-654 & Velphram Distributors 2166 10/17/2006 145.72 4Q-857 4Q-655 Velphram Distributors 2172 11/8/2006 4,261.61 4Q-486 & R. Ong Shell gasoline Station various various 8,335.17 4Q-871 4Q-487 & R. Ong Shell gasoline Station various various 10,568.97 4Q-872 4Q-498 & R. Ong Shell gasoline Station various various 8,401.70 4Q-874 subtotal 138,425.24 3) Input VAT on domestic purchases of services supported by VAT ORs issued not in the name of petitioner 1Q-34 & Best travel 36186 3/14/2006 6,105.00 1Q-509 1Q-63 & City Service Corporation 146107 3/6/2006 38,280.52 1Q-519 1Q-82 & Donna Carlos Fashions & collections 1583 3/7/2006 17,475.00 1Q-524 1Q-119 & Functional, Inc. 119107 2/24/2006 1,567.28 1Q-556 1Q-152 & Harty Incorporated Philippines 304 2/9/2006 6,455.06 1Q-577 1Q-157 & Hearth & hastings Philippines, Inc. 3384 1/13/2006 1,909.08 1Q-578 1Q-186 & Infinity Security & Investigation Services 2865 2/27/2006 98,832.24 1Q-598 1Q-203 & KPI Elevators, Inc. 6792 1/5/2006 6,266.18 1Q-613 1Q-204 & KPI Elevators, Inc. 6795 1/5/2006 12,532.36 1Q-614 1Q-296 & Nu-print Philippines printer and Trader 9371 2/17/2006 1,909.09 1Q-680 1Q-297 & Nu-print Philippines printer and Trader 9622 3/29/2006 1,665.28 1Q-681 1Q-431 & Rizalnet Enterprises 0363 3/29/2006 612.86 1Q-721 1Q-441 & Sards Construction 0087 3/31/2006 96,695.94 1Q-726 1Q-439 & Sards Construction 0084 3/17/2006 27,452.57 1Q-727 1Q-440 & Sards Construction 86 3/23/2006 32,451.43 1Q-728 2Q-27 & Best travel 36705 5/24/2006 3,086.20 2Q-471 2Q-400 & Sards Construction 0010 5/31/2006 8,099.99 2Q-655 2Q-404 & Sards Construction 0208 5/24/2006 37,440.00 2Q-656 2Q-401 & Sards Construction 0012 7/6/2006 65,520.00 2Q-657 3Q-29 & Best travel 37581 9/14/2006 3,035.66 3Q-574 4Q-33 & Best travel 38363 12/14/2006 107.04 4Q-688 4Q-358 & Nu-print Philippines printer and Trader 9333 10/13/2006 192.00 4Q-790 4Q-359 & Nu-print Philippines printer and Trader 1034 10/20/2006 135.00 4Q-791 4Q-361 & Nu-print Philippines printer and Trader 0571 12/21/2006 171.00 4Q-792 4Q-362 & Nu-Print Philippines printer and Trader 0572 12/21/2006 214.00 4Q-793 4Q-516 & Reign-NAN Sales Industry 3212 12/14/2006 40,714.29 4Q-821 4Q-545 & Sards Construction 0089 10/12/2006 18,381.59 4Q-833 4Q-546 & Sards Construction 0024 10/20/2006 18,381.59 4Q-834 4Q-547 & Sards Construction 0026 10/27/2006 6,321.43 4Q-835 4Q-548 & Sards Construction 0027 11/10/2006 10,221.43 4Q-836 4Q-549 & Sards Construction 0034 11/23/2006 126,321.43 4Q-836 4Q-550 & Sards Construction 0035 11/29/2006 40,714.29 4Q-837 4Q-551 & Sards Construction 0036 11/29/2006 9,107.14 4Q-837 4Q-552 & Sards Construction 0032 11/16/2006 40,714.29 4Q-839 4Q-553 & Sards Construction 0037 12/20/2006 294,750.00 4Q-840 4Q-2 & Airfreight 2100, Inc. 103058 11/3/2006 19.66 4Q-687 4Q-3 & Airfreight 2100, Inc. 103081 11/16/2006 9.78 4Q-688 4Q-396 & Pagsanjan Medical Clinic 329845 10/13/2006 26.79 4Q-803 4Q-22 & Banahaw Telephone Corp. 34946 12/24/2006 235.71 4Q-692 4Q-23 & Banahaw Telephone Corp. 34798 11/28/2006 235.71 4Q-693 4Q-386 & P.C Magpily Eng'g. Enterprises 2492 10/31/2006 1,607.14 4Q-800 4Q-515 & Reign-NAN Sales Industry 3163 10/13/2006 8,672.34 4Q-822 subtotal 1,084,645.39 4) Input VAT on domestic purchase of service supported by VAT OR without OR date 1Q-435 & Rodler Engineering & Supplies 0266 31,315.71 1Q-722 subtotal 31,315.71 Grand Total P1,359,061.58 ============ Amortized Input VAT on Capital Goods exceeding P1M purchased in 2005 without supporting documents Description Date 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Purchased H-3, H-5, H-7, H-10, pp. 5-6 pp. 5-6 pp. 5-6 p. 3 Platform 11/5/2005 P996.42 P996.41 P996.42 P996.39 P3,985.64 Insulation Resistence 11/10/2005 1,355.49 1,355.49 1,355.49 1,355.49 5,421.96 Tester Ducter Megger 11/10/2005 1,138.92 1,138.91 1,138.92 1,138.89 4,555.64 Roof Cover 11/22/2005 1,375.74 1,375.74 1,375.74 1,375.74 5,502.96 Garage 12/7/2005 295.50 295.50 295.50 295.50 1,182.00 Garage 11/20/2005 1,375.74 1,375.74 1,375.74 1,375.74 5,502.96 Office softwares 11/3/2005 2,663.64 2,663.64 2,663.64 2,663.64 10,654.56 Local Area network 11/24/2005 2,210.04 2,210.04 2,210.04 2,210.04 8,840.16 Metal fiber glass 11/23/2005 2,727.27 2,727.27 2,727.27 2,727.27 10,909.08 enclosure Rainwise Weather 12/6/2005 612.03 612.03 612.03 612.03 2,448.12 station Engineering service 11/17/2005 3,661.71 3,661.71 3,661.71 3,661.71 14,646.84 Computer 11/12/2005 1,016.67 1,016.67 1,016.67 1,016.67 4,066.68 Slope Protection 11/18/2005 6,316.02 6,316.02 6,316.02 6,316.02 25,264.08 Gantry Crane 11/18/2005 496.68 496.68 496.68 496.68 1,986.72 Earthing and Lighting 11/18/2005 170.25 170.25 170.25 170.25 681.00 Protection Cable tray 11/18/2005 627.57 627.57 627.57 627.57 2,510.28 Lumot Morning Glory 11/18/2005 95.52 95.52 95.52 95.52 382.08 Fence Emergency saddle 11/18/2005 620.58 620.58 620.58 620.61 2,482.35 spillway road Perimeter Fence 12/9/2005 12,525.42 12,525.42 12,525.42 12,525.42 50,101.68 Emergency saddle 12/8/2005 867.90 867.90 867.90 867.90 3,471.60 spillway road Computers 12/28/2005 4,861.89 4,861.89 4,861.89 4,861.89 19,447.56 Retention 12/21/2005 36,116.49 36,116.49 36,116.49 36,116.49 144,465.96 Guesthouse 11/22/2005 6,493.56 6,493.56 6,493.56 6,493.56 25,974.24 Garage 11/14/2005 371.58 371.58 371.58 371.58 1,486.32 Garage 12/5/2005 371.94 371.94 371.94 371.94 1,487.76 Axial Blower 11/3/2005 1,897.83 1,897.83 1,897.83 1,897.83 7,591.32 multi Gas Detector 11/7/2005 556.35 556.35 556.35 556.35 2,225.40 TOTAL P91,818.75 P91,818.73 P91,818.75 P91,818.72 P367,274.95 ========== ========== ========== ========== ========== Accordingly, out of petitioner's reported input VAT of P44,005,101.83 for 2006, only the amount of P31,479,619.94 represents petitioner's valid input VAT, computed as follows: TIADCc Input VAT per Returns P44,005,101.83 Less: Disallowances Per ICPA Report (P10,182,111.52+P1.60) P10,182,113.12 Per Court's further verification Amortized input VAT on current purchases of capital goods exceeding P1M 617,032.24 Additional disallowances 1,726,336.53 12,525,481.89 Substantiated Input VAT P31,479,619.94 ============ Proceeding to the fourth and fifth requisites , since petitioner's reported sales for 2006 were all zero-rated, there is no output VAT to speak of. Thus, the substantiated input VAT of P31,479,619.94 is entirely attributable thereto. Furthermore, the claimed unutilized input VAT for taxable year 2006 in the amounts of P7,559,943.44 40 for the first quarter and P36,246,606.28 41 for the last three quarters were not carried over to the succeeding taxable quarters since the same were deducted as "VAT Refund/TCC claimed" in the First and Fourth Quarterly VAT Returns of 2006, respectively. In sum, petitioner has sufficiently proven compliance with the requisites for the refund of unutilized input VAT attributable to its zero-rated sales for the period January 1, 2006 to December 31, 2006, but only to the extent of P31,479,619.94 out of the total claimed input VAT of P43,806,549.72. WHEREFORE , premises considered, the instant Petition for Review is PARTIALLY GRANTED . Accordingly, respondent Commissioner of Internal Revenue is ORDERED TO ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner CBK Power Company Limited in the amount of P31,479,619.94 representing petitioner's unutilized input VAT attributable to its zero-rated sales for the period January 1, 2006 to December 31, 2006. SO ORDERED . (SGD.) AMELIA R. COTANGCO-MANALASTAS Associate Justice Lovell R. Bautista, J., concurs. ANNEX A CBK POWER COMPANY LIMITED vs. CIR CTA CASE NOS. 7771 & 7814 Schedule of amortized input VAT on current purchases of capital goods exceeding P1M Date Description Input VAT Est. life in No. of Amortized Reference Purchased Amount (A) months months Input VAT for (B) amortized 2006 (A/B*C) (C) B.1 7/11/2006 Dehumidifier 225,637.11 60 6 22,563.71 Annex 2-3Q-C-1; Exh. H-7, p. 4 of 8 subtotal 22,563.71 2 1/25/2006 Service Vehicle 160,000.00 60 12 32,000.00 Annex 2-1Q-C-1; Exh. H-3, p. 4 of 7 3/17/2006 Service Vehicle 145,714.00 60 10 24,285.70 Annex 2-1Q-C-1; Exh. H-3, p. 4 of 7 3/16/2006 Service Vehicle 102,428.40 60 10 17,071.70 Annex 2-1Q-C-1; Exh. H-3, p. 4 of 7 3/6/2006 SCADA Network 22,227.28 60 10 3,704.50 Annex 2-1Q-C-1; Exh. H-3, p. 4 of 7 7/18/2006 Service Vehicle 191,786.00 60 6 19,178.60 Annex 2-3Q-C-2; Exh. H-7, p. 4 of 8 subtotal 96,240.50 3 6/27/2006 Wave Breaker 25,689.76 60 7 2,997.14 Annex 2-2Q-C-1; Exh. H-5, p. 4 of 7 subtotal 2,997.14 4 8/1/2006 Power Supply 38,640.00 60 5 3,220.00 Annex 2-3Q-C-3; Exh. H-7, p. 4 of 8 subtotal 3,220.00 5 9/26/2006 Load Weights 51,428.58 60 4 3,428.57 Annex 2-3Q-C-4; Exh. H-7, p. 4 of 8 subtotal 3,428.57 6 3/22/2006 SCADA Network 37,127.79 60 10 6,187.96 Annex 2-1Q-C-2; Exh. H-3, p. 4 of 7 3/17/2006 SCADA Network 11,677.66 60 10 1,946.28 Annex 2-1Q-C-2; Exh. H-3, p. 4 of 7 4/27/2006 Wave Breaker 111,554.64 60 9 16,733.20 Annex 2-2Q-C-2; Exh. H-5, p. 4 of 7 6/27/2006 SCADA Network 26,196.43 60 7 3,056.25 Annex 2-2Q-C-2; Exh. H-5, p. 4 of 7 6/28/2006 SCADA Network 37,127.79 60 7 4,331.58 Annex 2-2Q-C-2; Exh. H-5, p. 4 of 7 7/17/2006 Caliraya Spillway 1,090,262.69 60 6 109,026.27 Annex 2-3Q-C-5; Exh. H-7, p. 4 of 8 11/20/2006 Service Vehicle 102,750.00 60 2 3,425.00 Annex 2-4Q-C-1; Exh. H-10, p. 3 of 4 subtotal 144,706.54 7 1/16/2006 Perimeter Fence 64,956.76 60 12 12,991.35 Annex 2-1Q-C-3; Exh. H-3, p. 4 of 7 1/23/2006 Perimeter Fence 44,050.18 60 12 8,810.04 Annex 2-1Q-C-3; Exh. H-3, p. 4 of 7 1/6/2006 Perimeter Fence 99,542.67 60 12 19,908.53 Annex 2-1Q-C-3; Exh. H-3, p. 4 of 7 1/11/2006 Thrust Bearing 205,265.45 60 12 41,053.09 Annex 2-1Q-C-3; Exh. H-3, p. 4 of 7 1/19/2006 Slope Protection 256,443.58 60 12 51,288.72 Annex 2-1Q-C-3; Exh. H-3, p. 4 of 7 1/6/2006 Repair of Leak 131,841.48 60 12 26,368.30 Annex 2-1Q-C-3; Exh. H-3, p. 4 of 7 3/15/2006 Wave Breaker 76,517.95 60 10 12,752.99 Annex 2-1Q-C-3; Exh. H-3, p. 4 of 7 5/19/2006 Wave Breaker 41,557.18 60 8 5,540.96 Annex 2-2Q-C-3; Exh. H-5, p. 4 of 7 5/17/2006 Slope Protection 112,103.97 60 8 14,947.20 Annex 2-2Q-C-3; Exh. H-5, p. 4 of 7 5/5/2006 Plugging and 286,141.58 60 8 38,152.21 Annex 2-2Q-C-3; concreting Exh. H-5, p. 4 of 7 6/14/2006 Communication Equip 135,359.40 60 7 15,791.93 Annex 2-2Q-C-3; Exh. H-5, p. 4 of 7 6/14/2006 Communication Equip 136,620.31 60 7 15,939.04 Annex 2-2Q-C-3; Exh. H-5, p. 4 of 7 6/27/2006 Plugging and 301,930.83 60 7 35,225.26 Annex 2-2Q-C-3; concreting Exh. H-5, p. 4 of 7 8/10/2006 Load Weights 205,714.29 60 5 17,142.86 Annex 2-3Q-C-6; Exh. H-7, p. 4 of 8 9/6/2006 Guesthouse 21,157.69 60 4 1,410.51 Annex 2-3Q-C-6; Exh. H-7, p. 4 of 8 9/11/2006 Dehumidifier 180,509.69 60 4 12,033.98 Annex 2-3Q-C-6; Exh. H-7, p. 4 of 8 9/4/2006 Garage 31,178.57 60 4 2,078.57 Annex 2-3Q-C-6; Exh. H-7, p. 4 of 8 9/13/2006 Cable Anchor 73,102.50 60 4 4,873.50 Annex 2-3Q-C-6; Exh. H-7, p. 4 of 8 10/27/2006 Dehumidifier 45,127.42 60 3 2,256.37 Annex 2-4Q-C-2; Exh. H-10, p. 3 of 4 subtotal 338,565.41 9 1/16/2006 Perimeter Fence 2,020.45 60 12 404.09 Annex 2-1Q-C-5; Exh. H-3, p. 4 of 7 1/23/2006 Perimeter Fence 30.19 60 12 6.04 Annex 2-1Q-C-5; Exh. H-3, p. 4 of 7 1/6/2006 Perimeter Fence 878.23 60 12 175.65 Annex 2-1Q-C-5; Exh. H-3, p. 4 of 7 3/15/2006 Wave Breaker 907.56 60 10 151.26 Annex 2-1Q-C-5; Exh. H-3, p. 4 of 7 1/6/2006 Repair of Leak 5,570.76 60 12 1,114.15 Annex 2-1Q-C-5; Exh. H-3, p. 4 of 7 1/19/2006 Slope Protection 4,408.64 60 12 881.73 Annex 2-1Q-C-5; Exh. H-3, p. 4 of 7 6/14/2006 Communication Equip 8,316.94 60 7 970.31 Annex 2-2Q-C-4; Exh. H-5, p. 4 of 7 subtotal 3,703.23 10 11/16/2006 Load Weights 48,214.29 60 2 1,607.14 Annex 2-4Q-C-3; Exh. H-10, p. 3 of 4 subtotal 1,607.14 Grand Total 617,032.24 ========= Footnotes 1. Docket, CTA Case No. 7771, Petition for Review, pp. 1-14. 2. Docket, CTA Case No. 7814, Petition for Review, pp. 1-12. 3. Docket, CTA Case No. 7771, Vol. 1, Joint Stipulation of Facts and Issues (JSFI)-Facts Admitted, Pars. 5 and 9, pp. 231-232. 4. Docket, CTA Case No. 7771, Vol. 1, JSFI Facts Admitted, Par. 11, pp. 232-233. 5. Docket, CTA Case No. 7771, Vol. 1, JSFI Facts Admitted, Pars. 7-8, pp. 231-232. 6. Exhibits "H-1" to "H-10". 7. Supra Note 5. 8. Exhibit "A". 9. Docket, CTA Case No. 7771, Vol. 1, JSFI-Facts Admitted, Par. 12, p. 235. 10. Supra , Note 1. 11. Docket, CTA Case No. 7771, Vol. 1, JSFI-Facts Admitted, Par. 14, p. 235. 12. Exhibit "B". 13. Docket, CTA Case No. 7771, Vol. 1, JSFI-Facts Admitted, Par. 13, p. 235. 14. Supra , Note 2. 15. Docket, CTA Case No. 7771, Vol. 1, JSFI-Facts Admitted, Par. 14, p. 235. 16. Docket, CTA Case No. 7771, Vol. 1, pp. 420-446. 17. G.R. No. 184823, October 6, 2010. 18. Docket, CTA EB Case No. 758. 19. Docket, CTA EB Case No. 758. 20. Docket, CTA Case No. 7771, Vol. 2, pp. 959-1011. 21. Pertaining to CTA Case No. 7887 (CTA EB Case No. 760). 22. G.R. Nos. 187485, 196113 and 197156, February 12, 2013. 23. Docket, CTA Case No. 7771, Vol. 2, pp. 1223-1224. 24. Docket, CTA Case No. 7771, Vol. 2, pp. 1228-1230. 25. Docket, CTA Case No. 7771, Vol. 2, pp. 1231-1239. 26. Docket, CTA Case No. 7771, Vol. 2, p. 1241. 27. Docket, pp. 229-238. 28. Docket, pp. 229-238. 29. Par. 5, Facts Admitted, JSFI, docket, p. 231. 30. Par. 10, Facts Admitted, JSFI, docket, p. 232. 31. Par. 11, Facts Admitted, JSFI, docket, p. 232. 32. Exhibits "H-1" to "H-10". 33. Exhibit "I". 34. ICPA Report, Exhibit "Y", Annex 5. 35. Exhibit "J-1" to "J-234". 36. Exhibit "K-1" to "K-214". 37. Exhibits "W-1Q-1" to "W-1Q-773", "W-2Q-1" to "W-2Q-708", "W-3Q-1" to "W-3Q-760" & "W-4Q-1" to "W-4Q-878". 38. Exhibit "Y", pp. 14-18 & 21-22. 39. See Annex A of this Decision for the detailed computation. 40. Exhibit "H-3", Line 23D. 41. Exhibit "H-10", Line 23D.