Philippine Airlines, Inc. v. Commissioner of Internal Revenue

FIRST DIVISION [C.T.A. CASE NOS. 8708 & 8770. January 13, 2017.] PHILIPPINE AIRLINES, INC. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . DECISION DEL ROSARIO , P.J p : This is a consolidation of two (2) Petitions for Review filed by Philippine Airlines, Inc. against the Commissioner of Internal Revenue, seeking the refund of the aggregate amount of Thirty Million Ninety-Nine Thousand One Hundred and Ninety-Three Pesos and Eighty-Two Centavos (P30,099,193.82),allegedly representing excise taxes paid for its importation of alcohol and tobacco products used as commissary supplies for its international flight covering transactions made in the years 2006, and 2008 to 2012, 1 broken down as follows: CTA CASE NO. AMOUNT OF CLAIM 8708 P26,502,912.76 8770 P3,596,281.06 Total P30,099,193.82 ============ PARTIES Petitioner Philippine Airlines, Inc. ("PAL") is a domestic corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with registered address at PNB Financial Center, President Diosdado P. Macapagal Avenue, CCP Complex 1307, Pasay City. 2 On the other hand, respondent is the Commissioner of the Bureau of Internal Revenue ("BIR"), the government agency tasked with the assessment and collection of all national internal revenue taxes, fees and charges, including excise taxes paid on wines, liquors, and cigarettes under Sections 142 and 145 of the National Internal Revenue Code of 1997, as amended ("NIRC"). The Commissioner of Internal Revenue ("CIR") holds office at the BIR National Office Building, Agham Road, Diliman, Quezon City, where papers, pleadings, notices, orders, judgments, summons and other processes may be served. 3 CAIHTE FACTS On June 11, 1978, by virtue of Presidential Decree No. 1590 ("PD 1590") otherwise known as " An Act Granting a New Franchise to Philippine Airlines, Inc. to Establish, Operate and Maintain Air-Transport Services in the Philippines and between the Philippines and Other Countries ," PAL was granted a franchise to operate and maintain air transport services domestically and internationally. 4 Under Section 13 of its franchise, PAL must comply with certain conditions to be entitled to exemption from the payment of specific taxes on all its importation of cigarettes, liquor, and wine for its commissary and catering supplies for international consumption. 5 On January 1, 2005, Republic Act No. 9334 ("RA 9334") otherwise known as " An Act Increasing the Excise Tax Rates Imposed on Alcohol and Tobacco Products, Amending for the Purpose Sections 131, 141, 142, 143, 144, 145 and 288 of the National Internal Revenue Code of 1997 ,as amended" took effect. 6 Section 6 of RA 9334 provides: "SEC. 6. Section 131 of the National Internal Revenue Code of 1997, as amended, is hereby amended to read as follows: "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. In the case of tax-free articles brought or imported into the Philippines by persons, entities, or agencies exempt from tax which are subsequently sold, transferred or exchanged in the Philippines to non-exempt persons or entities, the purchasers or recipients shall be considered the importers thereof, and shall be liable for the duty and internal revenue tax due on such importation. The provision of any special or general law to the contrary notwithstanding, the importation of cigars and cigarettes, distilled spirits, fermented liquors and wines into the Philippines, even if destined for tax and duty-free shops, shall be subject to all applicable taxes, duties, charges, including excise taxes due thereon. This shall apply to cigars and cigarettes, distilled spirits, fermented liquors and wines brought directly into the duly chartered or legislated freeports of the Subic Special Economic and Freeport Zone, created under Republic Act No. 7227; the Cagayan Special Economic Zone and Freeport, created under Republic Act No. 7922; and the Zamboanga City Special Economic Zone, created under Republic Act No. 7903, and such other freeports as may hereafter be established or created by law: Provided, further ,That importations of cigars and cigarettes, distilled spirits, fermented liquors and wines made directly by a government-owned and operated duty-free shop, like the Duty-Free Philippines (DFP),shall be exempted from all applicable duties only: Provided, still further ,That such articles directly imported by a government-owned and operated duty-free shop, like the Duty-Free Philippines, shall be labeled 'duty-free' and 'not for resale': Provided, finally ,That the removal and transfer of tax and duty-free goods, products, machinery, equipment and other similar articles other than cigars and cigarettes, distilled spirits, fermented liquors and wines, from one freeport to another freeport, shall not be deemed an introduction into the Philippine customs territory." aScITE Cigars and cigarettes, distilled spirits and wines within the premises of all duty-free shops which are not labelled as hereinabove required, as well as tax and duty-free articles obtained from a duty-free shop and subsequently found in a non-duty-free shop to be offered for resale shall be confiscated, and the perpetrator of such non-labelling or re-selling shall be punishable under the applicable provisions of this Code. Articles confiscated shall be disposed of in accordance with the rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioners of Customs and Internal Revenue, upon consultation with the Secretary of Tourism and the General Manager of the Philippine Tourism Authority. The tax due on any such goods, products, machinery, equipment or other similar articles shall constitute a lien on the article itself, and such lien shall be superior to all other charges or liens, irrespective of the possessor thereof. (B) Rate and Basis of the Excise Tax on Imported Articles . Unless otherwise specified, imported articles shall be subject to the same rates and basis of excise taxes applicable to locally manufactured articles." On July 1, 2005, Republic Act No. 9337 ("RA 9337") otherwise known as " An Act Amending Sections 27, 28, 34, 106, 107, 108, 109, 110, 111, 112, 113, 114, 116, 117, 119, 121, 148, 151, 236, 237 and 288 of the National Internal Revenue Code of 1997, as amended, and for other purposes ," expressly and specifically amended the franchise of PAL and subjected it to value-added registration and payment requirements. 7 On various dates during the years 2006, and 2008 to 2012, PAL's importations of assorted cigarettes, liquor and wines, covered by various Informal Import Declaration and Entries ("IIDE"), 8 Air Waybills/Bills of Lading 9 and Authority to Release Imported Goods ("ATRIG"), 10 arrived in Manila. PAL allegedly paid under protest the excise taxes on its importation of assorted liquor, wine, and cigarettes, in the amount of P30,099,193.82, viz. : DATE OF PAYMENT OFFICIAL RECEIPT AMOUNT NUMBER CTA Case No. 8708 September 23, 2011 1821203445 879,380.41 September 23, 2011 1821203423 976,037.39 September 23, 2011 1821203401 1,436,872.69 September 23, 2011 1821203388 1,572,300.88 December 9, 2011 1823441058 2,913,490.60 December 9, 2011 1823441070 1,858,869.93 December 9, 2011 1823441092 3,851,455.73 December 9, 2011 1823441036 1,543,708.44 December 29, 2011 1824011164 2,213,166.08 December 29, 2011 1824011007 1,030,098.94 December 29, 2011 1824011041 851,018.92 December 29, 2011 1824011063 681,073.31 December 29, 2011 1824011119 2,259,632.96 December 29, 2011 1824011142 2,221,205.44 December 29, 2011 1824010938 2,214,601.04 CTA Case No. 8770 March 7, 2012 1825602914 959,747.90 April 13, 2012 1826711769 810,564.49 October 16, 2012 1831236149 1,825,968.67 TOTAL P30,099,193.82 ============ On various dates, Gilda L. Cinco, the Acting Chief of the Warehousing Assessment Unit ("WAU") of the Bureau of Customs ("BOC"), forwarded to Silveria Salazar, the Chief of the Collection Division of the Ninoy Aquino International Airport ("NAIA") Customshouse, the documents covering PAL's payment of duties, taxes and other charges pursuant to Customs Memorandum Order ("CMO") No. 13-2005 and Revenue Regulations ("RR") No. 3-2006. On September 12, 2013, PAL filed with the BIR its administrative claim for refund in the amount of P26,502,912.76, seeking the recovery of excise taxes paid under protest on its importation of alcohol and tobacco products for use in international flights covering payments made on September 23, 2011, December 9, 2011, and December 29, 2011. 11 HEITAD On February 13, 2014, PAL filed with the BIR its administrative claim for refund in the amount of P3,596,281.06 for the excise taxes paid under protest on March 7, 2012, April 13, 2012 and October 16, 2012. 12 Due to the inaction of the CIR on PAL's administrative claims for refund, PAL filed Petitions for Review with this Court on September 19, 2013 and February 20, 2014, which were docketed as CTA Case Nos. 8708 13 and 8770, 14 respectively. The CIR filed his Answer on January 6, 2014 for CTA Case No. 8708 15 and on April 21, 2014 for CTA Case No. 8770. 16 The two cases were later consolidated on July 21, 2014. 17 The CIR filed his Pre-Trial Brief on February 20, 2014, 18 while PAL filed its Consolidated Pre-Trial Brief on September 18, 2014. 19 The Pre-Trial Conference was held on September 25, 2014. 20 The parties submitted a Joint Stipulation of Facts and Issues on October 27, 2014, 21 which the Court approved in the Resolution promulgated on November 7, 2014. 22 During trial, PAL presented the following witnesses: 1. Mr. Jonathan Castillo Lee Manager of Company Materials Handling Division of PAL; 23 2. Mr. Emmanuel Y. Mendoza Court-commissioned Independent Certified Public Accountant ("ICPA"); 24 3. Ms. Cheryl Imelda V. Capinpin Manager of In-flight and Commissary Materials Purchasing Division, Corporate Logistics and Services Department of PAL; 25 4. Mr. Ruel Ryan O. Julian Manager of Tax Services Division of PAL; 26 and 5. Mr. Gilbert M. Galedo Senior Planning and Purchasing Specialist of In-flight Commissary Materials Purchasing Division of PAL. 27 PAL formally offered its documentary evidence on June 26, 2015. 28 The CIR filed his Comment (Re: Petitioner's Formal Offer of Evidence) on July 15, 2015. 29 The Court admitted PAL's offered documentary evidence in a Resolution dated September 17, 2015. 30 During the hearing dated October 8, 2015, the CIR's counsel manifested that he would not be presenting any evidence as there is no report of investigation. 31 As directed by the Court, the CIR and PAL filed their memoranda on December 7, 2015 32 and December 14, 2015, 33 respectively. Hence, the case was deemed submitted for decision on December 18, 2015. 34 ISSUE The sole issue submitted for the resolution of this Court is whether PAL is entitled to a refund or tax credit of excise taxes in the amount of P26,502,912.56 paid on September 23, 2011, December 9, 2011, and December 29, 2011; and in the amount of P3,596,281.06 paid on March 7, 2012, April 13, 2012 and October 16, 2012, or an aggregate amount of P30,099,193.82, on the importation of cigarettes, liquor, and wine for its in-flight and catering supplies for international consumption. PARTIES' ARGUMENTS PAL contends that under its franchise pursuant to PD 1590, it is exempt from payment of excise taxes on all its importations of cigarettes, liquor, and wine for its catering and commissary supplies for international consumption. 35 PAL also argues that it has exhausted all administrative and judicial remedies, and complied with the requirements for filing a claim for refund or tax credit under the provisions of the NIRC. 36 PAL further claims that it has shown its compliance with the conditions laid out in PD 1590, and is thus entitled to a refund or tax credit in the total amount of P30,099,193.82. On the other hand, the CIR insists that RA 9334 revoked the exemption granted to PAL. 37 THE COURT'S RULING PAL's exemption from taxes granted under PD 1590 was not repealed by Section 6 of RA 9334 The issue on PAL's tax exemption under its franchise, PD 1590, is not novel. No less than the Supreme Court has settled the same in the consolidated cases of Republic of the Philippines rep. by the Commissioner of Customs vs. Philippine Airlines, Inc. (PAL) and Commissioner of Internal Revenue vs. Philippine Airlines, Inc. (PAL) 38 in this wise: "In CIR v. PAL ,the Supreme Court has already passed upon the very same issues raised by the same petitioners. The only differences are the taxable period involved and the amount of refundable tax. We have held in that case that it is a basic principle in statutory construction that a later law, general in terms and not expressly repealing or amending a prior special law, will not ordinarily affect the special provisions of the earlier statute. A reading of the pertinent provisions of P.D. 1590 and R.A. 9334 shows that there was no express repeal of the grant of exemption: PRESIDENTIAL DECREE NO. 1590 xxx xxx xxx SECTION 13. In consideration of the franchise and rights hereby granted, the grantee shall pay to the Philippine Government during the life of this franchise whichever of subsections (a) and (b) hereunder will result in a lower tax: ATICcS (a) The basic corporate income tax based on the grantee's annual net taxable income computed in accordance with the provisions of the National Internal Revenue Code; or (b) A franchise tax of two per cent (2%) of the gross revenues derived by the grantee from all sources, without distinction as to transport or nontransport operations; provided, that with respect to international airtransport service, only the gross passenger, mail, and freight revenues from its outgoing flights shall be subject to this tax. The tax paid by the grantee under either of the above alternatives shall be in lieu of all other taxes, duties, royalties, registration, license, and other fees and charges of any kind, nature, or description, imposed, levied, established, assessed, or collected by any municipal, city, provincial, or national authority or government agency, now or in the future, including but not limited to the following : xxx xxx xxx (2) All taxes, including compensating taxes, duties, charges, royalties, or fees due on all importations by the grantee of aircraft, engines, equipment, machinery, spare parts, accessories, commissary and catering supplies ,aviation gas, fuel, and oil, whether refined or in crude form and other articles, supplies, or materials; provided, that such articles or supplies or materials are imported for the use of the grantee in its transport and nontransport operations and other activities incidental thereto and are not locally available in reasonable quantity, quality, or price ; xxx xxx xxx SECTION 24. This franchise, as amended, or any section or provision hereof may only be modified, amended, or repealed expressly by a special law or decree that shall specifically modify, amend, or repeal this franchise or any section or provision thereof. (Emphasis supplied) REPUBLIC ACT NO. 9334 xxx xxx xxx SECTION 6. Section 131 of the National Internal Revenue Code of 1997, is amended, is hereby amended to read as follows: 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 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 subsequently sold, transferred or exchanged in the Philippines to non-exempt persons or entities, the purchasers or recipients shall be considered the importers thereof, and shall be liable for the duty and internal revenue tax due on such importation. The provision of any special or general law to the contrary notwithstanding, the importation of cigars and cigarettes, distilled spirits, fermented liquors and wines into the Philippines, even if destined for tax and duty-free shops, shall be subject to all applicable taxes, duties, charges, including excise taxes due thereon. This shall apply to cigars and cigarettes, distilled spirits, fermented liquors and wines brought directly into the duly chartered or legislated freeports of the Subic Special Economic and Freeport Zone, created under Republic Act No. 7227; the Cagayan Special Economic Zone and Freeport, created under Republic Act No. 7922; and the Zamboanga City Special Economic Zone, created under Republic Act No. 7903, and such other freeports as may hereafter be established or created by law: Provided, further ,That importations of cigars and cigarettes, distilled spirits, fermented liquors and wines made directly by a government owned and operated duty-free shop, like the Duty-Free Philippines (DFP),shall be exempted from all applicable duties only: Provided, still further ,That such articles directly imported by a government-owned and operated duty-free shop, like the Duty-Free Philippines, shall be labeled 'duty-free' and 'not for resale': Provided, finally ,That the removal and transfer of tax and duty-free goods, products, machinery, equipment and other similar articles other than cigars and cigarettes, distilled spirits, fermented liquors and wines, from one freeport to another freeport, shall not be deemed on introduction into the Philippine customs territory. TIADCc xxx xxx xxx SECTION 10. Repealing Clause . All laws, decrees, ordinances, rules and regulations, executive or administrative orders, and such other presidential issuances as are inconsistent with any of the provisions of this Act are hereby repealed, amended or otherwise modified accordingly. The Court has exhaustively discussed all issues similar to those in the present case in this wise: Indeed, as things stand, PD 1590 has not been revoked by the NIRC of 1997, as amended. Or to be more precise, the tax privilege of PAL provided in Sec. 13 of PD 1590 has not been revoked by Sec. 131 of the NIRC of 1997, as amended by Sec. 6 of RA 9334 .We said as much in Commissioner of Internal Revenue v. Philippine Air Lines, Inc. : That the Legislature chose not to amend or repeal [PD] 1590 even after PAL was privatized reveals the intent of the Legislature to let PAL continue to enjoy, as a private corporation, the very same rights and privileges under the terms and conditions stated in said charter. x x x To be sure, the manner to effectively repeal or at least modify any specific provision of PAL's franchise under PD 1590, as decreed in the aforequoted Sec. 24, has not been demonstrated. And as aptly held by the CTA En Banc ,borrowing from the same Commissioner of Internal Revenue case: "While it is true that Sec. 6 of RA 9334 as previously quoted states that ' the provisions of any special or general law to the contrary notwithstanding ,' such phrase left alone cannot be considered as an express repeal of the exemptions granted under PAL's franchise because it fails to specifically identify PD 1590 as one of the acts intended to be repealed . ...(Emphasis supplied) Noteworthy is the fact that PD 1590 is a special law, which governs the franchise of PAL. Between the provisions under PD 1590 as against the provisions under the NIRC of 1997, as amended by 9334, which is a general law, the former necessary prevails. This is in accordance with the rule that on a specific matter, the special law shall prevail over the general law, which shall be resorted only to supply deficiencies in the former. In addition, where there are two statutes, the earlier special and the later general the terms of the general broad enough to include the matter provided for in the special the fact that one is special and other general creates a presumption that the special is considered as remaining an exception to the general, one as a general law of the land and the other as remaining an exception to the general, one as a general law of the land and the other as the law of a particular case. In other words, the franchise of PAL remains the governing law on its exemption from taxes. Its payment of either basic corporate income tax or franchise tax whichever is lower shall be in lieu of all other taxes, duties, royalties, registrations, licenses, and other fees and charges, except only real property tax. The phrase 'in lieu of all other taxes' includes but is not limited to taxes, duties, charges, royalties, or fees due on all importations by the grantee of the commissary and catering supplies, provided that such articles or supplies or materials are imported for the use of the grantee in its transport and nontransport operations and other activities incidental thereto and are not locally available in reasonable quantity, quality, or price . However, upon the amendment of the 1997 NIRC, Section 22 of R.A. 9337 abolished the franchise tax and subjected PAL and similar entities to corporate income tax and value-added tax (VAT). PAL nevertheless remains exempt from taxes, duties, royalties, registrations, licenses, and other fees and charges, provided it pays corporate income tax as granted in its franchise agreement. Accordingly, PAL is left with no other option but to pay its basic corporate income tax, the payment of which shall be in lieu of all other taxes, except VAT, and subject to certain conditions provided in its charter. In this case, the CTA found that PAL had paid basic corporate income tax for fiscal year ending 31 March 2006. Consequently, PAL may now claim exemption from taxes, duties, charges, royalties, or fees due on all importations of its commissary and catering supplies, provided it shows that 1) such articles or supplies or materials are imported for use in its transport and nontransport operations and other activities incidental thereto; and 2) they are not locally available in reasonable quantity, quality, or price." (Emphases supplied) From all the foregoing, the exemption granted to PAL under PD 1590 remains and therefore PAL may still be entitled to refund or credit of the excise taxes paid on its commissary supplies used in international flights. PAL is entitled to a partial refund of the excise taxes paid Under its franchise, particularly pursuant to Section 13 of PD 1590, as amended by RA 9337, PAL is obliged to pay the corporate income tax and the value-added tax, in lieu of all other taxes, including taxes on commissary and catering supplies, provided that such articles, supplies or materials are imported for its use in its transport and non-transport operations and other activities incidental thereto and are not locally available in reasonable quantity, quality or price. AIDSTE Thus, in order to be exempted from taxes, duties, charges, royalties, or fees on the importation of its commissary and catering supplies, PAL must prove the following: 1. it paid its corporate income tax and VAT liabilities for the subject period of importation; 2. the imported articles, supplies or materials are intended to be used in its transport and non-transport operations and other activities incidental thereto; and 3. the imported articles, supplies or materials are not locally available in reasonable quantity, quality or price. With regard to the first requisite, PAL submitted its Annual Income Tax Returns for the fiscal years ended March 2006, March 2007, March 2008, March 2009, March 2010, March 2011, March 2012 and March 2013 to prove payment of income tax. 39 Also, PAL proved that it is a VAT-registered entity and that it accounted and paid for the VAT on its sales/receipts as evidenced by its BIR Certificates of Registration, 40 Payment Forms No. 0605, 41 and VAT Returns 42 for fiscal years 2006 to 2012. As to the second requisite, the imported articles were described as "Inflight Materials" under the column "Description of Articles of the IIDE documents" submitted by PAL. 43 Similarly, in the ATRIGs issued by CIR addressed to the Collector of Customs, it was indicated that "the shipment to be released at the Port of Manila consisting of the above described articles, will be used exclusively for international inflight consumption." 44 With reference to the third requisite, records show that the excise taxes paid by PAL on September 23, 2011, December 9, 2011, December 29, 2011, March 7, 2012, April 13, 2012 and October 16, 2012 totalling to P30,099,193.82 45 pertain to its importation in the years 2006, 2008 to 2012 of assorted liquor, wine and cigarettes constituting its commissary and catering supplies for international flight consumption, detailed as follows: Date of Informal Air Waybill/ Exhibit of Description Excise Tax Paid Arrival Import Bill of Authority to Declaration Lading Release and Entry Exh. Ref. Imported (IIDE) Goods Exh. Ref. (ATRIG) Exh. Ref. CTA CASE NO. 8708 13-Feb-10 "P-47" "P-170" "P-294" Asahi Super Beer P4,800.60 25-Feb-10 "P-48" "P-171" "P-295" Ballantines Scotch Whisky 38,211.55 28-Feb-08 "P-49" "P-172" "P-296" Asahi Super Dry, Beer Sake Wine 7,801.74 07-Apr-10 "P-50" "P-173" "P-297" Volupta Rosso, Volupta Blanco 366,840.00 15-Apr-10 "P-51" "P-174" "P-298" Camus XO Cognac Elegance 12,933.14 17-Apr-10 "P-52" "P-175" "P-299" Asahi Super Dry Beer 480.06 28-Apr-10 "P-53" "P-176" "P-300" Absolute Vodka 95,233.32 04-Jun-10 "P-54" "P-177" "P-301" West Ice, West Menthol 353,080.00 04-Jun-10 "P-55" "P-178" "P-302" Lindemans Premier Shiraz Cabernet, 49,981.95 Penfolds Shiraz Cabernet 22-Jun-10 "P-56" "P-179" "P-303" Volupta Rosso 183,420.00 30-Jul-10 "P-57" "P-180" "P-304" Johnnie Walker Black Label 220,153.57 11-Aug-10 "P-58" "P-181" "P-305" Volupta Rosso, Volupta Blanco 366,840.00 28-Aug-10 "P-59" "P-182" "P-306" Ballantines Scotch Whisky 21 YO 38,211.55 11-Sep-10 "P-60" "P-183" "P-307" Penfolds Chardonnay, Lindemans 35,950.32 Premier Chardonnay 14-Sep-10 "P-61" "P-184" "P-308" West Menthol 81,480.00 21-Aug-10 "P-62" "P-185" "P-309" Lindemans Premier Shiraz Cabernet 49,981.95 Penfolds Shiraz Cabernet 31-Aug-10 "P-63" "P-186" "P-310" West Menthol 162,960.00 03-Sep-10 "P-64" "P-187" "P-311" Gordon's Gin 28,512.18 05-Sep-10 "P-65" "P-188" "P-312" Patron Silver Tequila 63,489.96 19-Sep-10 "P-66" "P-189" "P-313" Chivas Regal Whisky, Royal Salute 447,950.38 Whisky 19-Sep-10 "P-67" "P-190" "P-314" Camus XO Cognac Elegance 28,217.76 24-Sep-10 "P-68" "P-191" "P-315" Ballantines Scotch Whisky, Absolute 379,171.29 Vodka 30-Sep-10 "P-69" "P-192" "P-316" Camus VSOP Cognac Elegance 56,435.52 01-Oct-10 "P-70" "P-193" "P-317" Johnnie Walker Black Label 220,153.57 13-Jan-06 "P-71" "P-194" "P-318" Japanese Sake Wine, Japanese Beer 7,001.64 01-Nov-06 "P-72" "P-195" "P-319" Vin de Table Blanc, Vin de Table 187,088.40 Rouge 02-Oct-10 "P-73" "P-196" "P-320" Penfolds Chardonnay, Lindemans 100,881.00 Premier Shiraz Cabernet, Penfolds Shiraz Cab 12-Oct-10 "P-74" "P-197" "P-321" Camus VSOP Cognac Elegance 284,529.08 12-Oct-10 "P-75" "P-198" "P-322" Asahi Super Dry Beer 6,400.80 16-Oct-10 "P-76" "P-199" "P-323" Volupta Rosso 183,420.00 23-Oct-10 "P-77" "P-200" "P-324" Patron Silver Tequila 42,326.64 25-Oct-10 "P-78" "P-201" "P-325" Absolute Vodka 95,233.32 28-Oct-10 "P-79" "P-202" "P-326" West KS, West Ice, West Menthol 665,420.00 29-Oct-10 "P-80" "P-203" "P-327" Davidoff Classic, Davidoff Lights 271,600.00 31-Oct-10 "P-81" "P-204" "P-328" Piper Heidsieck 687,798.00 01-Nov-10 "P-82" "P-205" "P-329" Piper Heidsieck 229,266.00 06-Nov-10 "P-83" "P-206" "P-330" Penfolds Shiraz Cabernet, 91,710.00 Lindemans Premier 12-Nov-10 "P-84" "P-207" "P-331" Volupta Blanco, Volupta Rosso 365,097.51 14-Nov-10 "P-85" "P-208" "P-332" Piper Heidsieck Brut 458,532.00 14-Nov-10 "P-86" "P-209" "P-333" Piper Heidsieck Brut 687,798.00 21-Nov-10 "P-87" "P-210" "P-334" Ballantines Scotch Whisky 21 YO & 93,471.33 17 YO 23-Nov-10 "P-88" "P-211" "P-335" Camus XO Cognac Elegance 28,217.76 28-Nov-10 "P-89" "P-212" "P-336" Grappa Red Rose/Perla Blanca 29,981.37 01-Dec-10 "P-90" "P-213" "P-337" Martini Dry/Sweet Vermouth 3,912.96 03-Dec-10 "P-91" "P-214" "P-338" Asahi Super Dry Beer 6,400.80 10-Dec-10 "P-92" "P-215" "P-339" Camus VSOP Cognac Elegance 284,529.08 11-Dec-10 "P-93" "P-216" "P-340" Penfolds Chardonnay White, 114,637.50 Penfolds Shiraz Cab Red, Lindemans Chardonnay White, Lindemans Shiraz Red 14-Dec-10 "P-94" "P-217" "P-341" Royal Salute Scotch Whisky, Chivas 335,905.89 Regal Scotch Whisky, Martell VSOP 16-Dec-10 "P-95" "P-218" "P-342" Patron Silver Tequila 148,143.24 16-Dec-10 "P-96" "P-219" "P-343" Johnnie Walker Black Label 177,533.72 17-Dec-10 "P-97" "P-220" "P-344" Ballantines Scotch Whisky 17 YO & 336,845.37 21 YO, Absolute Vodka 21-Dec-10 "P-98" "P-221" "P-345" West KS, Davidoff Lights 420,980.00 30-May-10 "P-99" "P-222" "P-346" Volupta Blanco 160,584.21 19-Jan-11 "P-100" "P-223" "P-347" Ballantines Scotch Whisky 17 YO & 281,256.02 21 YO, Absolute Vodka 28-Jan-11 "P-101" "P-224" "P-348" Chivas Regal Whisky, Royal Salute 582,190.34 Whisky, Martell VSOP Cognac 26-Jan-11 "P-102" "P-225" "P-349" Penfolds Chardonnay 29,713.50 27-Jan-11 "P-103" "P-226" "P-350" Camus VSOP, XO, Cognac Elegance 584,742.90 21-Jan-11 "P-104" "P-227" "P-351" Davidoff Classic/Lights, West 566,000.00 Menthol/Ice 08-Feb-11 "P-105" "P-228" "P-352" Asahi Super Dry 6,911.52 23-Feb-11 "P-106" "P-229" "P-353" Ballantines Scotch Whisky 17 & 21 283,165.40 YO, Royal Salute Whisky 21 YO 25-Feb-11 "P-107" "P-230" "P-354" Piper Hiedsieck 495,216.00 24-Feb-11 "P-108" "P-231" "P-355" Charles Heidsieck 861,675.84 12-Mar-11 "P-109" "P-232" "P-356" Penfolds Shiraz Cabernet Lindemans 113,901.75 Premier Chardonnay 24-Mar-11 "P-110" "P-233" "P-357" Camus Grand VSOP Cognac, Camus 212,691.50 VSOP Cognac Elegance 27-Mar-11 "P-111" "P-234" "P-358" Davidoff Lights 113,200.00 06-Apr-11 "P-112" "P-235" "P-359" JW Black Label 245,698.56 07-Apr-11 "P-113" "P-236" "P-360" Queen Adelaide Cab Sauvignon, 67,449.65 Queen Adelaide Chardonnay 08-Apr-11 "P-114" "P-237" "P-361" Asahi Super Dry Japanese Beer 7,948.24 09-Apr-11 "P-115" "P-238" "P-362" Remy Martin VSOP 64,124.90 15-Apr-11 "P-116" "P-239" "P-363" Camus VSOP Cognac Elegance 307,291.60 21-Apr-11 "P-117" "P-240" "P-364" Chivas Regal Whisky 411,402.24 09-Sep-06 "P-118" "P-241" "P-365" Salem Lights BOS 260,600.00 19-Nov-06 "P-119" "P-242", "P-366" Vin de Table Blanc, Vin de Table 160,374.60 "P-243" Rogue 23-Mar-08 "P-120" "P-244" "P-367" Ballantines Scotch Whisky 17 YO, 564,943.07 Royal Salute Whisky, Carlos Brandy 29-Sep-09 "P-121" "P-245" "P-368" Camus Cognac VSOP Elegance 78,774.58 09-Feb-11 "P-122" "P-246" "P-369" Ballantines Scotch 17 YO, Absolute 239,987.52 Vodka 12-Feb-11 "P-123" "P-247" "P-370" Queen Adelaide Cabernet 37,538.05 Sauv/Chardonnay 15-Feb-11 "P-124" "P-248" "P-371" Patron Silver Tequila 182,851.20 18-Feb-11 "P-125" "P-249" "P-372" Charles Heidsieck, Remy Martin 688,097.06 VSOP 11-Mar-11 "P-126" "P-250" "P-373" J&B Rare Scotch Whisky, Gordon's 154,277.78 Gin 02-Mar-11 "P-127" "P-251" "P-374" Lindemans Premier Shiraz Cab. 34,665.75 01-Apr-11 "P-128" "P-252" "P-375" Camus Cognac XO Elegance 60,950.40 23-Apr-11 "P-129" "P-253" "P-376" Royal Salute Whisky 21 YO, Martell 353,633.54 VSOP Cognac, Absolute Vodka 24-Apr-11 "P-130" "P-254" "P-377" Queen Adelaide Cab Sauv, Queen 74,283.75 Adelaide Chardonnay 30-Apr-11 "P-131" "P-255" "P-378" Penfolds Shiraz Ca, Penfolds 146,586.60 Chardonnay, Lindemans Premier Chardonnay/Cabernet 06-May-11 "P-132" "P-256" "P-379" Absolute Vodka 205,701.12 28-May-11 "P-133" P-257" "P-380" Remy Martin VSOP 64,124.90 28-May-11 "P-134" "P-258" "P-381" Martell VSOP Cognac 102,218.90 02-Jun-11 "P-135" "P-259" "P-382" Queen Adelaide Cab Sauv, Queen 91,121.40 Adelaide Chardonnay 04-Jun-11 "P-136" "P-260" "P-383" Remy Martin VSOP 106,663.20 15-Jun-11 "P-137" "P-261" "P-384" Camus Cognac XO Elegance, Camus 92,695.40 VSOP Cognac Elegance 16-Jun-11 "P-138" "P-262" "P-385" Patron Silver Tequila 137,138.40 17-Jun-11 "P-139" "P-263" "P-386" Chivas Regal Whisky, Ballantines 250,145.20 Scotch Whisky, Royal Salute Whisky 18-Jun-11 "P-140" "P-264" "P-387" Asahi Super Dry Beer 6,911.52 20-Feb-09 "P-141" "P-265" "P-388" Carlsberg Beer 81,457.20 21-Feb-09 "P-142" "P-266" "P-389" Asahi Beer 6,047.58 27-Feb-09 "P-143" "P-267" "P-390" Carlsberg Beer 81,457.20 09-Mar-09 "P-144" "P-268" "P-391" Sky Grappa Alexander 19,681.90 06-May-09 "P-145" "P-269" "P-392" Carlsberg Beer 97,748.64 19-May-09 "P-146" "P-270" "P-393" Asahi Super Dry Beer, Hakutsuru 8,424.66 Sake Wine 19-Jun-09 "P-147" "P-271" "P-394" Carlsberg Beer 90,417.49 25-Dec-09 "P-148" "P-272" "P-395" Mayne Cour Red Table Wine 198,090.00 03-Apr-09 "P-149" "P-273" "P-396" Carlsberg Beer 97,748.64 09-Apr-11 "P-150" "P-274" "P-397" Volupta Blanco, Volupta Rosso 396,180.00 15-Apr-11 "P-151" "P-275" "P-398" West KS/Menthol/Ice 297,150.00 14-May-11 "P-152" "P-276" "P-399" West Light/Menthol/Ice, Davidoff 622,600.00 Classic/Lights 02-Jun-11 "P-153" "P-277" "P-400" Gordon's Gin, JW Black Label 194,592.66 23-Jun-11 "P-154" "P-278" "P-401" Sky Grappa Alexander Red and 8,253.70 White 24-Jun-11 "P-155" "P-279" "P-402" Discipulus Syrah/Blanc 198,090.00 30-Jun-11 "P-156" "P-280" "P-403" Penfolds Chardonnay/Shiraz/Cab, 146,586.60 Lindemans Premier Chardonnay/Premier Shiraz Cab 05-Jul-11 "P-157" "P-281" "P-404" Volupta Blanco, Volupta Rosso 396,180.00 07-May-10 "P-158" "P-282" "P-405" Johnnie Walker Black 173,639.68 09-Jun-11 "P-159" "P-283" "P-406" Volupta Blanco, Volupta Rosso 396,180.00 25-Jun-11 "P-160" "P-284" "P-407" West Ice, Davidoff Classic 254,700.00 09-Jul-11 "P-161" "P-285" "P-408" Charles Heidsieck 1,386,604.80 19-Aug-11 "P-162" "P-286" "P-409" Asahi Super Dry Beer 6,911.52 29-Aug-11 "P-163" "P-287" "P-410" Martini Dry/Sweet Vermouth 3,169.44 10-Jul-11 "P-164" "P-288" "P-411" Chivas Regal Whisky 12 YO, 520,610.44 Ballantines Scotch Whisky 21 YO/17 YO, Royal Salute Whisky 21 YO 26-Jul-11 "P-165" "P-289" "P-412" Ballantines Scotch Whisky 17 & 421,344.36 21 YO, Absolute Vodka 04-Aug-11 "P-166" "P-290" "P-413" J&B Rare Scotch Whisky, JW Black 287,283.20 Label 05-Aug-11 "P-167" "P-291" "P-414" Winston Lights, Davidoff Classic 198,100.00 12-Aug-11 "P-168" "P-292" "P-415" Royal Salute Whisky 21 YO, Chivas 479,971.44 Regal Whisky 12 YO 16-Aug-11 "P-169" "P-293" "P-416" Camus VSOP Cognac Elegance 307,291.60 Subtotal P26,502,912.68 CTA CASE NO. 8770 25-Feb-11 "P-631" "P-656" "P-681" Volupta Rosso, Volupta Blanco P396,180.00 20-May-11 "P-632" "P-657" "P-682" Patron Silver Tequila 91,425.60 01-Jul-11 "P-633" "P-658" "P-683" West Menthol, Davidoff Lights 268,850.00 14-Sep-11 "P-634" "P-659" "P-684" Sky Grappa Alexander 8,888.60 18-Sep-11 "P-635" "P-660" "P-685" Volupta Rosso 118,160.68 16-Oct-11 "P-636" "P-661" "P-686" Penfolds Shiraz Cab, Penfolds 69,331.50 Chardonnay, Lindemans Premier Chardonnay, Lindemans Shiraz Cab 01-Nov-11 "P-637" "P-662" "P-687" Asahi Super Dry Beer 6,911.52 20-Nov-11 "P-638" "P-663" "P-688" Volupta Rosso 282,278.25 09-Dec-11 "P-639" "P-664" "P-689" Penfolds Shiraz Cab, Penfolds 69,331.50 Chardonnay 09-Dec-11 "P-640" "P-665" "P-690" Absolute Vodka 205,701.12 18-Dec-11 "P-641" "P-666" "P-691" Queen Adelaide Cabernet, Queen 148,567.50 Adelaide Chardonnay 30-Dec-11 "P-642" "P-667" "P-692" Hennessy Prive Cognac, 97,774.60 Glenmorangie, Wenjun Super 07-Jan-12 "P-643" "P-668" "P-693" Asahi Super Dry Beer 6,911.52 07-Jan-12 "P-644" "P-669" "P-694" Queen Adelaide 128,758.50 Cabernet/Sauvignon, Queen Adelaide Chardonnay 14-Mar-12 "P-645" "P-670" "P-695" Camus VSOP Cognac Elegance 307,291.60 16-Mar-12 "P-646" "P-671" "P-696" Queen Adelaide Cabernet, Queen 98,945.96 Adelaide Chardonnay 24-Mar-12 "P-647" "P-672" "P-697" Charles Heidsieck Brut Reserve 49,521.60 29-Mar-12 "P-648" "P-673" "P-698" Piper Heidsieck 148,564.80 30-Mar-12 "P-649" "P-674" "P-699" J&B Rare Scotch Whisky 82,216.96 02-Apr-12 "P-650" "P-675" "P-700" Volupta Blanco 198,090.00 04-Apr-12 "P-651" "P-676" "P-701" Stolichnaya Gold 70cl 72,376.32 10-Apr-12 "P-652" "P-677" "P-702" Piper Heidsieck Brut 371,412.00 17-Apr-12 "P-653" "P-678" "P-703" Camus Cognac XO Elegance, Patron 129,519.60 Silver Tequila 17-Apr-12 "P-654" "P-679" "P-704" Penfolds Chardonnay, Lindemans 75,472.29 Shiraz Cab/Lindemans Chardonnay 19-Apr-12 "P-655" "P-680" "P-705" Johnnie Walker Black Label 163,799.04 Subtotal P3,596,281.06 TOTAL P30,099,193.74 46 ============= To prove that the imported articles were not locally available in reasonable quantity, quality or price, PAL submitted the Judicial Affidavit of Ms. Cheryl Capinpin, 47 PAL's Manager for In-flight and Commissary Materials Purchasing Division, Corporate Logistics and Services Department, Philippine Wine Merchants ("PWM") Price Lists for the years 2006, 48 2008, 49 2009, 50 2010, 51 2011 52 and 2012, 53 Future Trade International ("FTI") Price Lists dated April 8, 2009, 54 October 1, 2010 55 and for the years 2006 to 2013, 56 the 2010 BIR Price Survey 57 and the report 58 of the Court-commissioned Independent Certified Public Accountant ("ICPA"). 59 It is noted that the BIR Price Survey Computation submitted by PAL was based on the 2010 Price Survey conducted and published by the BIR in its Revenue Memorandum Circular 90-2012. With respect to the document described as the Price Lists from the Philippine Wine Merchants, the same was given probative value in the earlier cases 60 brought by petitioner before the Court, albeit involving different taxable periods, in arriving at the conclusion that the costs of importing the articles are lower than purchasing them locally. A perusal of the aforesaid Price Lists from PWM and FTI as well as the 2010 BIR Price Survey shows that the following imported liquor, wine and cigarette products with excise tax payment of P14,172,530.08 do not have corresponding local prices, to wit: IIDE Exh. Ref. ATRIG Exh. Ref. Commercial Invoice Exh. Ref. Description Excise Tax Paid CTA Case No. 8770 "P-48" "P-295" "P-428" Ballantines Scotch Whisky P38,211.55 "P-49" "P-296" "P-429" Japanese Sake Wine 2,201.04 "P-50" "P-296" "P-430" Volupta Rosso 183,420.00 Volupta Blanco 183,420.00 "P-53" "P-300" "P-434" Absolute Vodka 95,233.32 "P-54" "P-301" "P-435" West Ice, West Menthol 353,080.00 "P-55" "P-302" "P-436" Penfolds Shiraz Cabernet 26,137.35 "P-56" "P-303" "P-437" Volupta Rosso 183,420.00 "P-58" "P-305" "P-439" Volupta Rosso, Volupta Blanco 366,840.00 "P-59" "P-306" "P-440" Ballantines Scotch Whisky 21 YO 38,211.55 "P-60" "P-307" "P-441" Penfolds Chardonnay 15,774.12 "P-61" "P-308" "P-442" West Menthol 81,480.00 "P-62" "P-309" "P-443" Penfolds Shiraz Cabernet 26,137.35 "P-63" "P-310" "P-444" West Menthol 162,960.00 "P-64" "P-311" "P-445" Gordons Gin 28,512.18 "P-65" "P-312" "P-446" Patron Silver Tequila 63,489.96 "P-68" "P-315" "P-449" Ballantines Scotch Whisky (17 & 21 YO) 93,471.33 "P-68" "P-315" "P-450" Absolute Vodka 285,699.96 "P-71" "P-318" "P-453" Japanese Sake Wine 2,201.04 "P-73" "P-320" "P-455" Penfolds Chardonnay 27,513.00 Penfolds Shiraz Cabernet 36,684.00 "P-76" "P-323" "P-458" Volupta Rosso 183,420.00 "P-77" "P-324" "P-459" Patron Silver Tequila 42,326.64 "P-78" "P-325" "P-460" Absolute Vodka 95,233.32 "P-79" "P-326" "P-461" West KS, West Ice, West Menthol 665,420.00 "P-80" "P-327" "P-462" Davidoff Classic, Davidoff Lights 271,600.00 "P-83" "P-330" "P-465" Penfolds Shiraz Cabernet 55,026.00 "P-84" "P-331" "P-466" Volupta Blanco, Volupta Rosso 365,097.51 "P-87" "P-334" "P-469" Ballantines Scotch Whisky 21 YO & 17 YO 93,471.33 "P-89" "P-336" "P-471" Grappa Red Rose 14,108.88 Perla Blanca 15,872.49 "P-93" "P-340" "P-475" Penfolds Chardonnay, Penfolds Shiraz Cab 114,637.50 "P-95" "P-342" "P-477" Patron Silver Tequila 148,143.24 "P-97" "P-344" "P-479" Ballantines Scotch Whisky 17 YO & 21 YO 93,471.33 P-480 to "P-481" Absolute Vodka 243,374.04 "P-98" "P-345" "P-482" West KS 366,660.00 Davidoff Lights 54,320.00 "P-99" "P-346" "P-483" Volupta Blanco 160,584.21 "P-100" "P-347" "P-484" Ballantines Scotch Whisky 17 YO 91,425.60 Ballantines Scotch Whisky 21 YO 41,268.50 "P-485" Absolute Vodka 148,561.92 "P-102" "P-349" "P-487" Penfolds Chardonnay 29,713.50 "P-104" "P-351" "P-492" Davidoff Classic/Lights, West Menthol/West Ice 566,000.00 "P-106" "P-353" "P-494" Ballantines Scotch Whisky 17 YO 91,425.60 Ballantines Scotch Whisky 21 YO 123,805.50 "P-109" "P-356" "P-497" Penfolds Shiraz Cabernet 89,140.50 "P-111" "P-358" "P-498" Davidoff Lights 113,200.00 "P-113" "P-360" "P-502" Queen Adelaide Cab Sauvignon 46,947.33 Queen Adelaide Chardonnay 20,502.32 "P-118" "P-365" "P-507" Salem Lights BOS 260,600.00 "P-120" "P-367" "P-509" Ballantines Scotch Whisky 17 YO 106,404.47 "P-122" "P-369" "P-511" Ballantines Scotch 17 YO 91,425.60 "P-512" Absolute Vodka 148,561.92 "P-123" "P-370" "P-513" Queen Adelaide Cabernet Sauv/Chardonnay 37,538.05 "P-124" "P-371" "P-514" Patron Silver Tequila 182,851.20 "P-126" "P-373" "P-517" Gordon's Gin 30,793.62 "P-129" "P-376" "P-521" Absolute Vodka 182,845.44 "P-130" "P-377" "P-523" Queen Adelaide Cab Sauv, Queen Adelaide Chardonnay 74,283.75 "P-131" "P-378" "P-524" Penfolds Shiraz Cabernet 59,427.00 Penfolds Chardonnay 22,780.35 "P-132" "P-379" "P-525" Absolute Vodka 205,701.12 "P-135" "P-382" "P-528" Queen Adelaide Cabernet 55,465.20 Queen Adelaide Chardonnay 35,656.20 "P-138" "P-385" "P-531" Patron Silver Tequila 137,138.40 "P-139" "P-386" "P-532" Ballantines Scotch Whisky 21 YO 48,887.30 "P-144" "P-391" "P-537" Sky Grappa Alexander 19,681.90 "P-146" "P-393" "P-539" Japanese Sake Wine 2,377.08 "P-148" "P-395" "P-541" Mayne Cour Red Table Wine 198,090.00 "P-150" "P-397" "P-543" Volupta Blanco, Volupta Rosso 396,180.00 "P-151" "P-398" "P-544" West KS/Menthol/Ice 297,150.00 "P-152" "P-399" "P-545" West Ice 113,200.00 West Menthol 169,800.00 Davidoff Lights 113,200.00 Davidoff Classic 84,900.00 "P-153 "P-400" "P-546" Gordon's Gin 30,793.62 "P-154 "P-401" "P-548" Sky Grappa Alexander Red and White 8,253.70 "P-155" "P-402" "P-549" Discipulus Syrah/Blanc 198,090.00 "P-156 "P-403" "P-550" Penfolds Shiraz Cabernet 59,427.00 Penfolds Chardonnay 22,780.35 "P-157" "P-404" "P-551" Volupta Blanco, Volupta Rosso 396,180.00 "P-159" "P-406" "P-553" Volupta Blanco, Volupta Rosso 396,180.00 "P-160" "P-407" "P-554" West Ice, Davidoff Classic 254,700.00 "P-164" "P-411" "P-558" Ballantines Scotch Whisky 21 YO 64,124.90 Ballantines Scotch Whisky 17 YO 109,837.70 "P-165" "P-412" "P-559" Ballantines Scotch Whisky 17 YO 91,730.35 Ballantines Scotch Whisky 21 YO 146,768.56 Absolute Vodka 182,845.44 "P-167" "P-414" "P-562" Davidoff Classic 84,900.00 Subtotal P11,760,405.23 CTA Case No. 8770 "P-631" "P-681" "P-706" Volupta Rosso, Volupta Blanco P396,180.00 "P-632" "P-682" "P-707" Patron Silver Tequila 91,425.60 "P-633" "P-683" "P-708" West Menthol 124,258.43 Davidoff Lights 144,591.57 "P-634" "P-684" "P-709" Perla Bianca Grappa Alexandre 4,444.30 "P-634" "P-684" "P-709" Red Rose Grappa Alexander 4,444.30 "P-635" "P-685" "P-710" Volupta Rosso 118,160.68 "P-636" "P-686" "P-711" Penfolds Shiraz Cab 24,761.25 Penfolds Chardonnay 19,809.00 "P-638" "P-688" "P-713" Volupta Rosso 282,278.25 "P-639" "P-689" "P-714" Penfolds Shiraz Cabernet 24,227.60 Penfolds Chardonnay 45,103.90 "P-640" "P-690" "P-715" Absolute Vodka 205,701.12 "P-641" "P-691" "P-716" Queen Adelaide Cabernet 104,162.06 Queen Adelaide Chardonnay 44,405.44 "P-642" "P-692" "P-717" Glenmorangie 18 YO 33,256.68 Hennessy Prive Cognac 37,912.56 Wenjun Super 26,605.36 "P-644" "P-694" "P-719" Queen Adelaide Cabernet/Sauvignon, Queen Adelaide Chardonnay 128,758.50 "P-646" "P-696" "P-721" Queen Adelaide Cabernet, Queen Adelaide Chardonnay 98,945.96 "P-647" "P-697" "P-722" Charles Heidsieck Brut Reserve 49,521.60 "P-650" "P-700" "P-725" Volupta Blanco 198,090.00 "P-651" "P-701" "P-726" Stolichnaya Gold 70cl 72,376.32 "P-653" "P-703" "P-728" Patron Silver Tequila 114,282.00 - "P-704" "P-729" Penfolds Chardonnay 18,422.37 Subtotal P2,412,224.85 TOTAL P14,172,530.08 Thus, only the importation cost of the following liquor, wine and cigarette products, as computed by the ICPA, can be compared with the local prices for the same liquor, wine and cigarette products reflected in the PWM and FTI Price Lists and BIR Price Survey Computation presented by PAL: AaCTcI IIDE ATRIG Invoice Description Importation Cost per Bottle/Can/Pack (in PHP) per Annex E of the ICPA Report 61 Retail Price if Purchased Domestically (in PHP) Excise Tax Paid (in PHP) Without Excise Tax With Excise Tax Per BIR Price Survey FTI PWM CTA CASE NO. 8708 "P-47" "P-294" "P-428" Asahi Super Beer 22.36 29.03 99.47 4,800.60 "P-49" "P-296" "P-430" Asahi Super Dry 30.34 37.01 99.47 5,600.70 "P-51" "P-298" "P-432" Camus Cognac XO Elegance 1,565.52 1,800.66 4,200.00 12,933.14 "P-52" "P-299" "P-433" Asahi Super Dry Beer 238.80 245.47 99.47 480.06 "P-55" "P-302" "P-436" Lindemans Premier Shiraz 170.98 186.27 360.00 23,844.60 "P-57" "P-304" "P-438" Johnnie Walker Black Label 403.93 580.16 1,003.00 220,153.57 "P-60" "P-307" "P-441" Lindemans Premier Chardonnay 163.26 178.54 360.00 20,176.20 "P-62" "P-309" "P-443" Lindemans Premier Shiraz Cabernet 166.10 181.38 360.00 23,844.60 "P-66" "P-313" "P-447" Chivas Regal Whisky 497.86 674.22 1,100.00 380,933.20 Royal Salute Whisky 1,958.24 2,287.45 6,400.00 67,017.18 "P-67" "P-314" "P-448" Camus Cognac VSOP Elegance 1,538.46 1,773.61 4,200.00 28,217.76 "P-69" "P-316" "P-451" Camus Cognac VSOP Elegance 630.67 865.82 1,800.00 56,435.52 "P-70" "P-317" "P-452" Johnnie Walker Black Label 387.12 563.48 1,003.00 220,153.57 "P-71" "P-318" "P-453" Asahi Super Dry 36.44 43.11 99.47 4,800.60 "P-72" "P-319" "P-454" Vin de Table Blanc 89.85 105.14 275.00 82,539.00 Vin de Table Rogue 89.85 105.14 275.00 104,549.40 "P-73" "P-320" "P-455" Lindemans Premier Shiraz Cabernet 162.42 177.70 360.00 36,684.00 "P-74" "P-321" "P-456" Camus Cognac VSOP Elegance 443.52 772.72 1,800.00 284,529.08 "P-75" "P-322" "P-457" Asahi Super Dry Beer 21.00 27.67 99.47 6,400.80 "P-81" "P-328" "P-463" Piper Heidsieck Brut 877.95 1,260.06 1,984.83 2,150.00 2,540.00 687,798.00 "P-82" "P-329" "P-464" Piper Heidsieck Brut 877.95 1,260.06 1,984.83 2,150.00 2,540.00 229,266.00 "P-83" "P-330" "P-465" Lindemans Shiraz Cabernet 159.77 175.06 360.00 36,684.00 "P-85" "P-332" "P-467" Piper Heidsieck Brut 866.27 1,248.38 1,984.83 2,150.00 2,540.00 458,532.00 "P-86" "P-333" "P-468" Piper Heidsieck Brut 866.27 1,248.38 1,984.83 2,150.00 2,540.00 687,798.00 "P-88" "P-335" "P-470" Camus Cognac XO Elegance 1,506.02 1,741.16 4,200.00 28,217.76 "P-90" "P-337" "P-472" Martini Dry/Sweet Vermouth 47.68 49.72 430.00 400.00 3,912.96 "P-91" "P-338" "P-473" Asahi Super Dry Beer 19.84 26.51 99.47 6,400.80 "P-92" "P-339" "P-474" Camus Cognac VSOP Elegance 448.02 777.22 1,800.00 284,529.08 "P-94" "P-341" "P-476" Royal Salute Scotch Whisky 2,020.73 2,349.94 6,400.00 63,489.96 Chivas Regal Scotch Whisky 491.86 656.46 1,100.00 177,768.86 Martell VSOP 612.09 941.30 1,620.00 94,647.07 "P-96" "P-343" "P-478" Johnnie Walker Black Label 386.38 575.97 1,003.00 177,533.72 "P-101" "P-348" "P-486" Chivas Regal Whisky 12 YO 499.73 690.19 1,100.00 411,402.24 Royal Salute Whisky 21 YO 2,146.83 2,502.38 6,400.00 68,569.20 Martell VSOP Cognac 621.88 977.42 2,200.00 102,218.90 "P-103" "P-350" "P-488" Camus Cognac VSOP Elegance 600.94 854.90 2,200.00 76,188.00 P-489" Camus Cognac XO Elegance 1,529.68 1,783.64 6,900.00 30,475.20 "P-490" Camus Cognac VSOP Elegance 455.70 811.25 2,200.00 170,788.10 "P-491" Camus Cognac VSOP Elegance 455.70 811.25 2,200.00 307,291.60 "P-105" "P-352" "P-493" Asahi Super Dry 21.04 28.24 100.00 6,911.52 "P-106" "P-353" "P-494" Royal Salute Whisky 2,107.54 2,463.08 6,400.00 67,934.30 "P-107" "P-354" "P-495" Piper Hiedsieck 881.14 1,293.82 2,015.40 2,150.00 2,500.00 495,216.00 "P-108" "P-355" "P-496" Charles Heidsieck 1,760.33 2,173.01 2,047.88 861,675.84 "P-109" "P-356" "P-497" Lindemans Premier Chardonnay 160.62 177.12 360.00 24,761.25 "P-110" "P-357" "P-498" Camus Cognac VSOP Elegance 451.29 806.83 2,200.00 136,503.50 "P-499" Camus Cognac VSOP Elegance 600.79 854.75 2,200.00 76,188.00 "P-112" "P-359" "P-501" JW Black Label 282.39 418.89 1,050.00 245,698.56 "P-114" "P-361" "P-503" Asahi Super Dry Japanese Beer 21.76 28.96 100.00 7,948.24 "P-115" "P-362" "P-504" Remy Martin VSOP 747.78 1,103.32 2,250.00 2,350.00 64,124.90 "P-116" "P-363" "P-505" Camus Cognac VSOP Elegance 461.23 816.78 2,200.00 307,291.60 "P-117" "P-364" "P-506" Chivas Regal Whisky 486.07 867.01 1,100.00 411,402.24 "P-119" "P-366" "P-508" Vin de Table Blanc, Vin de Table Rogue 91.49 104.59 275.00 160,374.60 "P-120" "P-367" "P-509" Royal Salute Whisky 1,924.96 2,254.17 6,400.00 63,489.96 Carlos I Brandy 413.16 742.37 1,099.00 395,048.64 "P-121" "P-368" "P-510" Camus Cognac VSOP Elegance 647.70 976.91 1,800.00 78,774.58 "P-125" "P-372" "P-515" Charles Heidsieck 1,773.98 2,186.66 2,047.88 623,972.16 "P-516" Remy Martin VSOP 752.74 1,108.29 2,250.00 2,350.00 64,124.90 "P-126" "P-373" "P-517" J&B Rare Scotch Whisky 175.01 365.48 910.50 123,484.16 "P-127" "P-374" "P-518" Lindemans Shiraz Cabernet 160.84 177.36 360.00 34,665.75 "P-128" "P-375" "P-519" to "P-520" Camus Cognac XO Elegance 1,516.62 1,770.58 6,900.00 60,950.40 "P-129" "P-376" "P-522" Royal Salute Whisky 21 YO 2,088.16 2,443.70 6,400.00 68,569.20 Martell VSOP Cognac 604.88 960.43 2,200.00 102,218.90 "P-131" "P-378" "P-524" Lindemans Premier Chardonnay 159.84 176.35 360.00 24,761.25 Lindemans Shiraz Cabernet 159.84 176.35 360.00 39,618.00 "P-133" "P-380" "P-526" Remy Martin VSOP 747.23 1,102.77 2,250.00 2,350.00 64,124.90 "P-134" "P-381" "P-527" Martell VSOP Cognac 608.10 963.65 2,200.00 102,218.90 "P-136" "P-383" "P-529" Remy Martin VSOP 745.44 1,100.98 2,250.00 2,350.00 106,663.20 "P-137" "P-384" "P-530" Camus Cognac XO Elegance 864.16 1,118.12 6,900.00 54,601.40 Camus Cognac VSOP Elegance 1,296.24 1,550.20 2,200.00 38,094.00 "P-139" "P-386" "P-532" Chivas Regal Whisky 12 YO 542.08 732.54 1,100.00 171,417.60 Royal Salute Whisky 21 YO 2,312.71 2,668.25 6,400.00 29,840.30 "P-140" "P-387" "P-533" Asahi Super Dry Beer 22.29 29.49 100.00 6,911.52 "P-141" "P-388" "P-534" Carlsberg Beer 14.03 20.82 159.75 81,457.20 "P-142" "P-389" "P-535" Asahi Super Dry Beer 43.78 50.97 100.00 6,047.58 "P-143" "P-390" "P-536" Carlsberg Beer 15.34 22.13 159.75 81,457.20 "P-145" "P-392" "P-538" Carlsberg Beer 15.33 22.12 159.75 97,748.64 "P-146" "P-393" "P-539" Asahi Super Dry Beer 41.85 49.05 100.00 6,047.58 "P-147" "P-394" "P-540" Carlsberg Beer 15.45 22.24 159.75 90,417.49 "P-149" "P-396" "P-542" Carlsberg Beer 15.55 22.34 159.75 97,748.64 "P-152" "P-399" "P-545" West Lights 19.33 47.63 40.88 141,500.00 "P-153" "P-400" "P-547" Johnnie Walker Black Label 281.09 417.59 1,050.00 163,799.04 "P-156" "P-403" "P-550" Lindemans Chardonnay 161.17 177.68 360.00 24,761.25 Lindemans Shiraz Cabernet 161.17 177.68 360.00 39,618.00 "P-158" "P-405" "P-552" Johnnie Walker Black Label 409.88 600.34 1,003.00 173,639.68 "P-161" "P-408" "P-555" Charles Heidsieck 1,765.86 2,178.54 2,047.88 1,386,604.80 "P-162" "P-409" "P-556" Asahi Super Dry Beer 21.76 28.96 100.00 6,911.52 "P-163" "P-410" "P-557" Martini Dry/Sweet Vermouth 51.69 53.89 430.00 395.00 3,169.44 "P-164" "P-411" "P-558" Chivas Regal Whisky 12 YO 443.62 824.56 1,100.00 239,984.64 Royal Salute Whisky 21 YO 2,010.12 2,365.67 6,400.00 106,663.20 "P-166" "P-413" "P-560" J&B Rare Scotch Whisky 169.60 360.06 910.50 123,484.16 "P-561" Johnnie Walker Black Label 273.44 409.93 1,050.00 163,799.04 "P-167" "P-414" "P-562" Winston Lights 19.00 47.30 60.23 113,200.00 "P-168" "P-415" "P-563" Royal Salute Whisky 21 YO 2,052.73 2,408.28 6,400.00 68,569.20 Chivas Regal Whisky 12 YO 477.82 668.29 1,100.00 411,402.24 "P-169" "P-416" "P-564" Camus Cognac VSOP Elegance 460.51 816.05 2,200.00 307,291.60 Subtotal 14,741,507.44 CTA CASE NO. 8770 "P-636" "P-686" "P-711" Lindemans Premier Chardonnay 160.20 176.71 360.00 9,904.50 Lindemans Shiraz Cabernet 160.20 176.71 360.00 14,856.75 "P-637" "P-687" "P-712" Asahi Super Dry Beer 22.24 29.44 100.00 6,911.52 "P-643" "P-693" "P-718" Asahi Super Dry Beer 22.47 29.67 100.00 6,911.52 "P-645" "P-695" "P-720" Camus VSOP Cognac Elegance 451.59 807.14 2,200.00 307,291.60 "P-648" "P-698" "P-723" Piper Heidsieck Brut 953.71 1,366.39 2,015.40 2,150.00 2,500.00 148,564.80 "P-649" "P-699" "P-724" J&B Rare Scotch Whisky 173.10 363.56 910.50 82,216.96 "P-652" "P-702" "P-727" Piper Heidsieck Brut 946.76 1,359.44 2,015.40 371,412.00 "P-653" "P-703" "P-728" Camus Cognac XO Elegance 1,712.41 1,966.37 6,900.00 15,237.60 - "P-704" "P-729" Lindemans Shiraz Cabernet 158.19 174.69 360.00 35,656.20 Lindemans Chardonnay 158.19 174.69 360.00 21,393.72 - "P-705" "P-730" Johnnie Walker Black Label 277.60 414.10 1,050.00 163,799.04 Subtotal 1,184,156.21 TOTAL 15,926,663.65 Clearly, from the foregoing table, the cost of importing the above-enumerated liquor, wine and cigarette products is lower than purchasing them locally, except for the following: IIDE ATRIG Invoice Description Cost per Bottle/Can/Pack in Peso per Annex E of the ICPA Report Retail Price if Purchased Domestically per RR 22-2003 and RMC 90-2012 Excise Tax Paid Without Excise Tax With Excise Tax CTA CASE NO. 8708 "P-52" "P-299" "P-433" Asahi Super Dry Beer 238.80 245.47 99.47 P480.06 "P-108" "P-355" "P-496" Charles Heidsieck 1,760.33 2,173.01 2,047.88 861,675.84 "P-125" "P-372" "P-515" Charles Heidsieck 1,773.98 2,186.66 2,047.88 623,972.16 "P-152" "P-399" "P-545" West Lights 19.33 47.63 40.88 141,500.00 "P-161" "P-408" "P-555" Charles Heidsieck 1,765.86 2,178.54 2,047.88 1,386,604.80 TOTAL P3,014,232.86 Thus, the Court finds that PAL has sufficiently proven its exemption from the payment of excise taxes only in the amount of P12,912,430.88, computed as follows: CTA Case CTA Case No. 8708 No. 8770 Total Excise Taxes Paid per Claim P26,502,912.76 P3,596,281.06 P30,099,193.82 Less: Disallowances Excise tax on imported liquor, wine and cigarette products wherein no price comparison was presented P11,760,405.23 P2,412,124.85 P14,172,530.08 Excise tax on imported liquor, wine and cigarette products where cost of importation is higher than the available local price 3,014,232.86 - 3,014,232.86 Total Disallowances P14,774,638.09 P2,412,124.85 P17,186,762.94 Refundable Excise Taxes Paid P11,728,274.67 P1,184,156.21 P12,912,430.88 ========= ========= ========= Evidently, the amount of P12,912,430.88 constitutes erroneously paid excise tax which is refundable pursuant to Sections 204 and 229 (C) of the NIRC of 1997, as amended. WHEREFORE ,premises considered, the present consolidated Petitions for Review are hereby PARTIALLY GRANTED .The COMMISSIONER OF INTERNAL REVENUE is hereby ORDERED to refund in favor of PHILIPPINE AIRLINES, INC. the amount of Twelve Million Nine Hundred Twelve Thousand Four Hundred Thirty Pesos and Eighty-Eight Centavos (P12,912,430.88) representing erroneously paid excise tax on its importation in the years 2006, 2008 to 2012 of assorted liquor, wine and cigarettes constituting its commissary and catering supplies for international flight consumption. SO ORDERED. (SGD.) ROMAN G. DEL ROSARIO Presiding Justice Erlinda P. Uy and Cielito N. Mindaro-Grulla, JJ. ,concur. Footnotes 1. Brief Statement of the Case, Joint Stipulation of Facts and Issues ("JSFI"),CTA Docket, p. 2105. 2. Par. 1, Stipulation of Facts, JSFI, CTA Docket, p. 2105. 3. Par. 2, Stipulation of Facts, JSFI, CTA Docket, p. 2106. 4. Par. 3, Stipulation of Facts, JSFI, CTA Docket, p. 2106. 5. Par. 4, Stipulation of Facts, JSFI, CTA Docket, p. 2106. 6. Par. 5, Stipulation of Facts, JSFI, CTA Docket, p. 2106. 7. Par. 6, Stipulation of Facts, JSFI, CTA Docket, p. 2106. 8. Exhibits "P-47" to "P-169" and "P-631" to "P-655". 9. Exhibits "P-170" to "P-293" and "P-656" and "P-680". 10. Exhibits "P-294" to "P-416" and "P-681" to "P-705". 11. Exhibit "P-46",CTA Docket, p. 45. 12. Exhibit "P-630",CTA Docket, p. 7164. 13. Exhibit "P-417". 14. Exhibit "P-731". 15. CTA Docket, pp. 554-573. 16. CTA Docket, pp. 185-199; 203-219. 17. Resolution dated July 21, 2014, CTA Docket, pp. 1730-1731. 18. Respondent's Pre-Trial Brief, CTA Docket, pp. 579-582. 19. CTA Docket, pp. 2045-2066. 20. Minutes of the Hearing dated September 25, 2014, CTA Docket, pp. 2069-2070. 21. CTA Docket, pp. 2105-2126. 22. CTA Docket, p. 2130. 23. Minutes of the Hearing dated January 20, 2015, CTA Docket, pp. 2154-2156. 24. Id. 25. Minutes of the Hearing dated February 17, 2015, CTA Docket, pp. 2165-2169. 26. Minutes of the Hearing dated February April 28, 2015, CTA Docket, pp. 2310-2315. 27. Id. 28. Formal Offer of Evidence, CTA Docket, pp. 2349-2388. 29. CTA Docket, pp. 2426-2427. 30. CTA Docket, pp. 2445-2446. 31. Minutes of the Hearing dated October 8, 2015, CTA Docket, pp. 2447-2448. 32. CTA Docket, pp. 2465-2466. 33. CTA Docket, pp. 2496-2516. 34. Resolution dated December 18, 2015, CTA Docket, p. 2518. 35. Memorandum, CTA Docket, p. 2501. 36. Memorandum, CTA Docket, p. 2506. 37. Answer, CTA Docket, p. 555; Answer, CTA Case No. 8770 Docket, p. 204. 38. G.R. Nos. 209353-54 and G.R. Nos. 211733-34, July 6, 2015. 39. Exhibits "P-598" to "P-610",CTA Docket, pp. 2226-2264. 40. Exhibits "P-587" to "P-589". 41. Exhibits "P-590" to "P-597". 42. Exhibits "P-611" to "P-618","P-740" to "P-747",and "P-784" to "P-785". 43. Exhibits "P-47" to "P-169" and "P-631" to "P-655". 44. Exhibits "P-294" to "P-416" and "P-681" to "P-705". 45. Exhibits "P-31" to "P-45" and "P-627" to "P-629". 46. With minimal difference of P.08 as compared to the total claim of P30,099,193.82. 47. Exhibits "P-750" and "P-751". 48. Exhibit "P-418". 49. Exhibit "P-419". 50. Exhibit "P-420". 51. Exhibit "P-421". 52. Exhibit "P-422". 53. Exhibit "P-732". 54. Exhibit "P-423". 55. Exhibit "P-424". 56. Exhibit "P-425". 57. Exhibit "P-783". 58. Exhibit "P-755". 59. Mendoza, Querido & Co.,through its Partner, Mr. Emmanuel Y. Mendoza. 60. CTA Case Nos. 7677, 7685 and 7746 [(Decision and Amended Decision) affirmed with modifications in CTA EB 954 & 1046, October 14, 2014];CTA Case No. 8153, January 17, 2013 (affirmed in CTA EB Nos. 1029, 1031 and 1032, April 30, 2014);CTA Case No. 7935, December 20, 2012; CTA Case No. 8236, December 18, 2013. 61. Exhibit "P-755".