Petron Corp. v. Commissioner of Internal Revenue

SPECIAL FIRST DIVISION [C.T.A. CASE NOS. 9993 & 10015. December 5, 2023.] PETRON CORPORATION , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent . DECISION REYES-FAJARDO , J p : Before the Court are consolidated Petitions for Review filed by Petron Corporation against respondent Commissioner of Internal Revenue (CIR), seeking the refund of an aggregate amount of P465,648,057.91, representing excise taxes paid between January 1, 2017 to December 31, 2017 relative to locally-produced and imported Jet A-1 fuel, which were sold and delivered subsequently to various international carriers and tax-exempt entities, viz. : HTcADC Docket Subject Jet A-1 Fuel Amount CTA Case No. 9993 Locally-produced P10,504,805.46 CTA Case No. 10015 Imported 455,143,252.45 Total P465,648,057.91 ============ FACTS Petitioner Petron Corporation is a domestic corporation duly organized and existing under Philippine law, "to purchase or otherwise acquire, store, hold, transport, use, experiment with, market distribute exchange, sell, and otherwise dispose of, import, export, handle, trade and generally deal in, refine, treat, reduce, distill, manufacture and smelt any and all kinds of petroleum products, oil, gas," 1 with principal office address at SMC Head Office Complex 40 San Miguel Avenue, Mandaluyong City. 2 It is represented by its counsel, Du-Baladad & Associates, with office address at the 20th Floor, Chatham House, Rufino corner Valero Sts., Salcedo Village, Makati City where it may be served with notices, pleadings and other processes of this Court. 3 Respondent is the head of the Bureau of Internal Revenue (BIR), empowered to perform the duties of the office, including acting upon and approving claims for refund or tax credit. Its office address is at the 5th Floor, BIR National Office Building, BIR Road, Diliman, Quezon City. 4 Claims filed before the BIR The present controversy stems from Petron Corporation's two (2) letter-applications 5 filed on June 22, 2018 before the Bureau of Internal Revenue (BIR), requesting the refund or issuance of tax credit certificates of the aggregate amount of P465,648,057.91 (administrative claims), representing excise taxes paid between January 1, 2017 to December 31, 2017 relative to Jet A-1 fuel, which were sold and delivered subsequently to various international carriers and tax-exempt entities, viz. : Exhibits Subject Jet A-1 Fuel Amount "P-8-L," "P-9-L" Locally-produced P10,504,805.46 "P-19," "P-20" Imported 455,143,252.45 Total P465,648,057.91 ============ Petron Corporation claimed to be entitled to a refund or credit of excise taxes paid, pursuant to Section 135 of the National Internal Revenue Code of 1997, as amended (Tax Code). It alleged 6 as follows: CAIHTE First , it is a producer and importer of Jet A-1 and unleaded gasoline fuel. It operates the Petron Bataan Refinery (PBR) where it manufactures and processes crude oil into a full range of petroleum products, including Jet A-1 and unleaded gasoline fuel ( i.e. , locally-produced). On the other hand, it imports Jet A-1 fuel in the event that the projected local production is insufficient to supply the projected demand for Jet A-1 fuel ( i.e. , imported). Second , after manufacture or importation, as the case may be, Petron Corporation stores the fuel in PBR until these are withdrawn/removed for delivery to Petron Corporation's local depots, where, in turn, it will be kept until the same is sold/delivered to various customers, including international carriers. Third , between January 1, 2017 and December 31, 2017, Petron Corporation paid excise taxes relative to locally-produced ( i.e. , upon removal from local depots) and imported fuel ( i.e. , upon importation) Jet A-1 fuel, pursuant to Sections 130 (A) (2) and 131 (A), in relation to Section 148 (f) and (g), of the Tax Code. Fourth , said petroleum products removed from local depots, and upon which excise taxes had been paid were sold subsequently to (a) various international carriers of Philippine or foreign registry, for use and consumption outside the Philippines, (b) various international carriers of foreign registry, whose countries of registry exempt Philippine carries from similar taxes, and (c) tax-exempt entities or agencies covered by tax treaties, conventions, and other international agreements for their use or consumption, viz. : Subject Volume in liters Excise Taxes Paid Locally-produced fuel Jet A-1 838,200 P3,646,170.00 Unleaded premium gasoline 1,868,838 6,858,635.46 P10,504,805.46 Imported fuel 124,017,235 455,143,252.45 Total 126,724,273 P465,648,057.91 =============== =============== The CIR's inaction on the above-discussed administrative claims prompted Petron Corporation to file the present petitions (judicial claims) on December 21, 2018 7 and January 23, 2019, 8 which were docketed as CTA Case Nos. 9993 and 10015, respectively. Proceedings before the Court The CIR filed separate Answers in CTA Case Nos. 9993 and 10015 on February 26, 2019 9 and March 4, 2019, 10 respectively. aScITE Pre-trial was terminated upon the Court's approval 11 of the parties' Joint Stipulation of Facts and Issues in each case. 12 Thereafter, the Court issued separate Pre-Trial Orders for the cases. 13 In the meantime, the CIR submitted the relevant BIR Records on March 6, 2019. 14 Upon Petron Corporation's motion, 15 the Court resolved to consolidate the instant petitions. 16 During trial, the following persons testified for Petron Corporation: (1) Leojun Antonio A. Gonzales, 17 former Area Sales Manager-Industrial North Luzon, Petron Corporation; (2) Ryan Kris B. Rebong, 18 Stock and Depot Finance Supervisor, Petron Corporation; (3) Ma. Clarissa C. Arguelles, 19 Tax Manager, Petron Corporation; (4) Conrado M. Briones, 20 the Court-commissioned Independent Certified Public Accountant (ICPA); 21 (5) Percival S. Paredes, 22 former Account and Sales Coordinator-National Accounts (International and Domestic Aviation), Petron Corporation; (6) Michael F. Manzano, 23 Commercial Services Manager, Petron Corporation; and (7) Allan James T. Tenorio, 24 former Terminal Manager for the Joint Oil Companies Aviation Fuel Storage Plant (JOCASP)/NAIA, Petron Corporation. The ICPA Report was submitted on December 4, 2020. 25 Petron Corporation filed its Formal Offer of Evidence on May 21, 2021. 26 After the CIR's submission of its Comment (on Petitioner's Formal Offer of Evidence with Manifestation) on June 9, 2021, 27 the Court issued a Resolution dated June 1, 2022 28 admitting Petron Corporation's exhibits, but excluded those which were not identified by its witnesses, the originals thereof were not presented for comparison, and/or which could not be found in the case records. For its part, the CIR manifested that it will no longer present any witness. 29 Thereafter, the parties filed their respective Memoranda. 30 The consolidated cases were submitted for decision on December 5, 2022. 31 Petron Corporation's Arguments Petitioner argues that its administrative and judicial claims for refund or tax credit were timely filed; that the imported and locally-produced tax-paid Jet A-1 and unleaded gasoline fuel sold and delivered to various international carriers and tax-exempt entities are exempt from excise tax, and any excise tax paid on their removal were erroneously paid; and that petitioner is entitled to a refund or issuance of tax credit certificate in the amount of P465,648,057.91, representing erroneous excise taxes paid on petroleum products exempt under Section 135 of the Tax Code. The CIR's Arguments The CIR counters that Petron Corporation is liable to pay excise taxes on its manufactured and imported Jet A-1 fuel and unleaded gasoline; that the excise taxes paid for the period from January 1, 2017 to December 31, 2017, in the amount of P10,504,805.46 and P455,143,252.45, were not erroneously/illegally paid; and that claims for refund of excise taxes paid are authorized only by Section 130 (D) of the Tax Code and not by Section 135 (C) thereof. DETACa ISSUES The Court is tasked to ascertain Petron Corporation's entitlement to a refund or credit of alleged erroneously/illegally paid excise taxes on locally-produced and imported fuel it sold subsequently to international carriers and tax-exempt entities. Resolution of this main issue turns upon the following questions: First , is Petron Corporation the proper party to request for a refund of excise taxes paid on its petroleum products sold to international carriers? Second , did Petron Corporation file its administrative and judicial claims within the time allowed by the law? Third , is the payment of excise taxes paid on manufactured or imported petroleum products but sold subsequently to international carriers or tax-exempt entities erroneous/illegal and, thus, subject to refund? Fourth , if the subject excise tax payments on petroleum products had been erroneous/illegal, did Petron Corporation establish its entitlement to a refund thereof? OUR RULING The consolidated Petitions for Review are partially granted. For reasons set out below, We rule that Petron Corporation is the proper party to seek the refund subject of the instant cases, that its administrative and judicial claims had been timely filed, and that the subject excise tax payments had been erroneous/illegal. However, it proved/substantiated its entitlement to a refund or credit only to the extent of P459,958,622.12. Petron Corporation, as the manufacturer/importer, is the proper party to request for a refund of excise taxes paid on its petroleum products sold to international carriers. We recognize Petron Corporation's standing in lodging the instant claims for refund. Section 135 of the Tax Code provides: HEITAD SECTION 135. Petroleum Products Sold to International Carriers and Exempt Entities or Agencies. Petroleum products sold to the following are exempt from excise tax: (a) International carriers of Philippine or foreign registry on their use or consumption outside the Philippines: Provided, That the petroleum products sold to these international carriers shall be stored in a bonded storage tank and may be disposed of only in accordance with the rules and regulations to be prescribed by the Secretary of Finance, upon recommendation of the Commissioner; (b) Exempt entities or agencies covered by tax treaties, conventions and other international agreements for their use or consumption: Provided, however, That the country of said foreign international carrier or exempt entities or agencies exempts from similar taxes petroleum products sold to Philippine carriers, entities or agencies; and (c) Entities which are by law exempt from direct and indirect taxes. In the recent case of Pilipinas Shell Petroleum Corporation vs. Commissioner of Internal Revenue , 32 the Supreme Court discussed the nature of excise taxes. An excise tax pertains to a levy imposed on specific manufactured or imported goods intended for domestic consumption, rather than being a charge on the exercise of a privilege. As an indirect tax, its legal responsibility falls upon one entity, yet the economic tax burden can be transferred to another. In the context of Petron Corporation's manufacture of petroleum products sold to various entities, the tax liability or the fiscal responsibility for the payment of excise tax remains with Petron Corporation, notwithstanding its capacity to transfer the economic weight or the tax burden, to its consumers. Pertaining to Section 135 of the Tax Code, in instances where petroleum products are vended to tax-exempt entities, it is imperative that the benefit of such exemption aligns with the party actually bearing the tax liability. Consequently, the exemption should appropriately correspond to Petron Corporation, the entity shouldering the fiscal responsibility to settle the tax. In particular, the Supreme Court explained: Based on (a) the nature of excise taxes as a property tax and an indirect tax, and (b) the principle that a buyer, when shouldering the tax burden, does not become the statutory taxpayer, it is thus clear that the purchaser of local products (such as international carriers) cannot be deemed to have been conferred a tax exemption when it has not been imposed a tax liability. In the ordinary course of things, international carriers do not manufacture or import petroleum products and hence, are not statutory taxpayers to which the exemption under Section 135 could pertain. If anything, international carriers merely bear the tax burden when the costs therefor are passed on to them by the actual manufacturers or importers. However, as earlier discussed, the "passing on" of the tax burden is largely a contractual affair between the parties and should not determine the tax incidence imposed by law unless the contrary is provided. As such, the tax exemption under Section 135 must correspondingly benefit the one who actually bears the liability to pay the same ( i.e. , the importers/manufacturers of petroleum products sold to international carriers, among others), and not the one who simply bears the economic burden thereof ( i.e. , the purchasers of the products, such as international carriers). aDSIHc Petron Corporation's claims for refund were filed on time. The basic rule allows the taxpayer seeking a refund or credit of erroneously/illegally collected two (2) years to file a claim therefor, to be counted " from the date of payment of the tax or penalty regardless of any supervening cause that may arise after payment to." 33 Applied to the present case, the two (2)-year prescriptive period shall be reckoned from the time Petron Corporation paid the subject excise taxes on its petroleum products. Verily, the statutory deadline for the payment of the excise taxes shall turn upon the manner by which the fuel was brought into existence: 34 whether it was manufactured or imported. For locally-produced fuel, under Section 130 (A) (2) of the Tax Code, 35 the payment of excise tax shall be due before removal thereof from the place of production ( i.e. , refinery). In the present case, the earliest removal of petitioner's locally-produced Jet-A1 and unleaded gasoline fuel from its PBR, as per Withdrawal Certificate (WC), 36 was made on January 1, 2017 , and for which the corresponding excise tax was paid on even date. 37 This allowed Petron Corporation until January 1, 2019 to file both its administrative and judicial claims for refund relative to excise taxes paid on its locally produced fuel. Thus, its June 22, 2018 38 and December 21, 2018 39 filings of its claims for refund before the BIR and the Court, respectively, were on time. On the other hand, for imported fuel, under Section 131 of the Tax Code, 40 the payment of excise tax shall be due before release of the importations from the customs house . Here, the earliest payment of the excise tax on imported fuel was made on January 23, 2017 , as per Customs Payment Receipts (CPRs). 41 Counting therefrom, Petron Corporation had until January 23, 2019 to file its administrative and judicial claims. Likewise, its administrative and judicial claims filed on June 22, 2018 42 and January 23, 2019 43 were timely. Excise taxes paid on petroleum products sold to international carriers and tax-exempt entities are subject to refund. At first instance, petroleum manufacturers/importers are liable to pay excise taxes when they take out the fuel from their refineries or from the customs house, as the case may be. However, this liability is qualified by Section 135 of the Tax Code, such that the tax-paid petroleum products become exempt from excise taxes when established that these are sold subsequently to any one of the following: (1) international carriers of Philippine or foreign registry on their use or consumption outside the Philippines (international carriers) ; (2) exempt entities or agencies covered by tax treaties, conventions and other international agreements for their use or consumption (tax-exempt entities by treaty) ; or (3) entities which are by law exempt from direct and indirect taxes (tax-exempt entities by law) . 44 When it is shown that the tax-paid petroleum products have become tax-exempt within the context of Section 135 of the Tax Code, the excise taxes which were previously paid thereon shall then be regarded as "erroneously or illegally collected," and, thus, subject to refund pursuant to Section 229 of the Tax Code. 45 In these lights, a claim of refund or credit based on Sections 229 and 135 of the Tax Code shall be granted only upon proof of the following: First , the excise taxes sought to be refunded were paid upon removal/release of the petroleum products from the refinery or customs house, as the case may be (First Requisite). Second , the petroleum products have become tax-exempt , e.g. , these have been sold subsequently to any of the above-enumerated groups (Second Requisite). ATICcS In the present case, Petron Corporation alleges to have paid excise taxes in the aggregate amount of P465,648,057.91 relative to locally-manufactured and imported Jet A-1 and unleaded premium gasoline fuel in the aggregate volume of 126,724,273 liters, which, in turn, it sold subsequently to international carriers and tax-exempt entities, summarized 46 as follows: Docket Particulars Customer Volume (in Liters) Excise Tax Paid 47 CTA Case No. 9993 Locally-produced Jet A-1 fuel Various international air carriers for use and consumption outside the Philippines, and tax-exempt entities 1,868,838 P6,858,635.46 Unleaded gasoline Tax-exempt entities 838,200 3,646,170.00 Subtotal P10,504,805.46 CTA Case No. 10015 Imported Jet A-1 fuel Various international air carriers for use and consumption outside the Philippines, and tax-exempt entities 124,017,235 455,143,252.45 Total 126,724,273 P465,648,057.91 ========== ============ Whether Petron Corporation met the first and second requisites above requires, foremost, an understanding of the movements of fuel inventories from source/origin to the end-user and corresponding modes of excise tax payments. Petron Corporation's system of recording fuel movements and tax payment modes were regular and in accordance with prescribed procedure. The manner of payment of excise taxes on locally-manufactured petroleum products differs from that made on imported fuel. On this matter, We summarize the testimonies of (a) Ma. Clarissa C. Arguelles, Tax Manager, Petron Corporation, 48 (b) Michael F. Manzano, Commercial Services Manager, Petron Corporation, 49 and (c) Ryan Kris B. Rebong, Stock and Depot Finance Supervisor, 50 in conjunction with the results of the ICPA's verification procedures. 51 ETHIDa Movements of fuel inventories. In brief, the Jet A-1 and unleaded gasoline fuel is stored together with locally-produced fuels in the PBR , pursuant to Commingling Permit No. ELTRD (P)-028-12-16-18918. 52 Thereafter, the petroleum products are delivered/transferred to Petron Corporation's depots , then to third-party storage facilities ( e.g. , other depots, into-plane facilities (ITPs), refuellers), for delivery to/loading into the end-consumers : the international air carriers and/or tax-exempt entities. All such movements of fuel are evidenced by the relevant supporting documents ( e.g. , Official Register Book (ORB) BIR Form No. 261) 53 and recorded in petitioner's books of account ( i.e. , GL-SAP system). Manner of payment of excise taxes on petroleum products. Petron Corporation pays excise taxes on locally-produced fuel on a daily basis, before removal from its refinery ( i.e. , PBR) and on imported fuel prior to its release from the customs house. It computes the tax due on Jet A-1 fuel and unleaded gasoline at the rates of P3.67 per liter and P4.35 per liter, respectively. For locally-produced fuels , Petron Corporation estimates the daily volume of removals from the PBR. Based on this, it computes the amount of excise taxes thereon and provides an allowance of around P5 million to ensure that excise tax payments that will fall due in the next two (2) to five (5) days shall be covered. It pays the corresponding excise tax by filing an Excise Tax Return on alcohol products (ETR) 54 and uses its Stock Accounting Section (SAS) to file an application for the payment of excise tax through the BIR Electronic Filing and Payment System (eFPS) in accordance with the actual product removals from the PBR. If it determines that the allowance will become insufficient, Petron Corporation makes an advance deposit to the BIR through eFPS. For locally-produced Jet A-1 fuel which will be sold to international air carriers for their use and consumption outside the Philippines, Petron Corporation secures Product Replenishment Certificates (PRCs), 55 whereby an outstanding balance of tax credits is set up, which may be applied against excise taxes due on succeeding removals of fuel destined to be sold to international carriers. Before removal, Petron Corporation applies for a Product Replenishment Debit Memo (PRDM) 56 to apply the credits and allow the removal of fuel from the PBR without actual cash payment of excise taxes due. For imported fuel , Petron Corporation pays the duties and taxes thereon via the Bureau of Customs (BOC)'s e2m system. The importation and payment are evidenced by the Statement of Settlement Duties and Taxes, Single Administrative Documents (SADs), Bill of Lading, Commercial Invoices, CPRs, BOC Certifications for Entry/Certificate of Payment, Certificates of Independent Survey (CIS), Authority to Release Imported Goods (ATRIG), and Reports of Survey, among others. TIADCc Based on Our verification, the above accounts ( i.e. , on the movements of inventory and on the modes of payment of excise taxes) coincide with the procedures laid out in Revenue Regulations (RR) No. 13-77, 57 RR No. 03-08, 58 Revenue Memorandum Order (RMO) No. 35-02, 59 and Revenue Memorandum Circular (RMC) No. 024-12, 60 and are consistent with those submitted in CTA Case Nos. 9738 & 9741, 61 which similarly dealt with Petron Corporation's judicial claim for refund relative to excise taxes paid on locally-produced and imported fuel. Furthermore, there is nothing on the records that suggests non-compliance on the part of petitioner with the prescribed procedure. The excise taxes sought to be refunded were duly paid. Proof of payment of the subject taxes is essential in refund cases because, while the collection of taxes may be found to be illegal or erroneous in theory , the claimant cannot be refunded amounts that it did not actually pay or remit to the government. For reasons set out below, We find that Petron Corporation presented sufficient proof relative to the first requisite : that the excise taxes it seeks to be refunded (P465,648,057.91) were duly paid . The subject excise taxes on locally- produced Jet A-1 and Unleaded Gasoline Fuel were duly paid. The ICPA verified that the excise taxes of the locally-produced Jet A-1 fuel and unleaded gasoline fuels from the PBR transferred to various depots were paid before removals. It found that, out of the total available balance of 1,571,739,184 liters 62 of Jet A-1 fuel, the total excise taxes due on the removals of the 344,098,741 liters of Jet A-1 fuel from the PBR to the depots were paid. He also noted that on the total production of 2,237,943,397 liters 63 of unleaded gasoline fuel, the removals of 88,031,017 liters of unleaded gasoline fuel from the PBR to the depots were likewise paid. The result of the aforementioned ICPA's verification 64 is shown below for reference: cSEDTC Withdrawal Certificate (WC) vs. ETR 65 Particulars Jet A-1 Fuel 66 Unleaded Gasoline Fuel 67 Total Total volume of removals from PBR per WC (in Liters) 344,098,741 68 88,031,017 Multiply by: Equivalent Excise Tax Rate per Liter P3.67 P4.35 Amount of excise tax that should have been paid P1,262,842,379.47 P382,934,923.95 P1,645,777,303.42 ============== ============== Actual amount of excise tax due and paid on PBR removals per ETR 4,301,898,550.38 69 Difference (P2,656,121,246.96) ============== The ICPA then accounted for the difference of P2,656,121,246.96, 70 as follows: Removals of Petroleum Products with no Effect on the Claim 71 Particulars Volume in Liters (from Table 9) Equivalent Excise Tax (from Table 10) 1. Removals of Jet A-1 fuel paid thru PRDM/PRC (marked as Exhibit No. P-209) 336,402,002 P1,234,595,347.34 2. Payment of excise tax on unleaded gasoline fuel not related to the claim (884,369,069) (3,864,748,302.55) 3. Payment of excise tax on other excisable petroleum products (91,037,241) (25,968,291.75) Total accounted difference (639,004,308) (P2,656,121,246.96) =========== ============== Stated differently, P1,645,777,303.42 72 out of the total P4,301,898,550.38 73 pertains to excise tax payments related to the claim. Having regard to the ICPA's findings vis--vis Petron Corporation's compliance with the prescribed procedure on the payment of excise taxes, We find that the excise taxes on locally-produced fuel amounting to P10,504,805.46, subject of the present judicial claim, as forming part of the total amount of excise taxes verified to have been duly paid to the BIR. The subject excise taxes due on importations of Jet A-1 Fuel were duly paid. According to petitioner, it imported Jet A-1 fuel with a volume of 157,508,472 liters 74 and paid equivalent excise taxes due thereon amounting to P579,750,656.02. 75 AIDSTE In support thereof, Petron Corporation offered the following documents in evidence: 1. BOC SADs; 76 2. CPRs; 77 3. BOC Certifications; 78 4. BIR ATRIGs; 79 and 5. CISs. 80 These were verified by the ICPA, 81 as summarized below: Summary of Excise Taxes Paid Based on Importation Documents 82 BOC Single Administrative Document (SAD) [Note: the Volume per BL and SAD are the same] CIS 83 ATRIG Exhibit No. Date Reference No. Volume in Liters Volume in Liters Exhibit No. Date of Payment Amount of Excise Tax Actually Paid 84 "P-202-1" 20 Jan 2017 6WOA1700037 12,609,039 12,589,118 "P-202-45" 9 Feb 2017 P46,275,173.13 "P-202-2" 8 Feb 2017 6WOA1700060 12,419,301 12,252,855 "P-202-46" 13 Mar 2017 45,578,834.67 "P-202-3" 28 Mar 2017 6WOA1700153 11,413,791 11,303,360 "P-202-47" 3 Apr 2017 41,888,612.97 "P-202-4" 21 Apr 2017 6WOA1700195 16,614,766 16,551,450 "P-202-48" 11 May 2017 60,976,191.22 "P-202-5" 25 Apr 2017 6WOA1700207 16,073,683 16,082,087 "P-202-49" 9 Jun 2017 58,990,416.61 "P-202-6" 3 May 2017 6WOA1700223 11,482,230 11,349,822 "P-202-50" 8 Jun 2017 42,139,784.10 "P-202-7" 11 May 2017 6WOA1700237 16,102,240 16,087,022 "P-202-51" 9 Jun 2017 59,095,220.80 "P-202-8" 22 May 2017 6WOA1700260 15,017,780 14,991,656 "P-202-52" 9 Jun 2017 55,115,252.60 "P-202-9" 22 June 2017 6WOA1700339 15,313,138 15,336,822 "P-202-53" 15 Aug 2017 56,199,216.46 "P-202-10" 25 Sep 2017 6WOA1700529 12,935,829 12,946,993 "P-202-54" 20 Oct 2017 47,474,492.43 "P-202-11" 26 Oct 2017 6WOA1700585 17,988,409 18,017,287 "P-202-55" 23 Nov 2017 66,017,461.03 TOTAL 157,970,206 157,508,472 TOTAL P579,750,656.02 ========== ========== ============= Notably, the final volume of 157,508,472 liters per CIS as shown in the table above is considered as the actual and final volume of imported Jet A-1 fuel which will be used in computing the final tax assessments by the BOC. SDAaTC The ICPA compared 85 the CIS as against the importation documents, viz. : Vessel Per Importation Documents-Final Volume Per CIS (Actual Volume Receives) Difference US Barrels at 60F (a) Liters at Air (b) US Barrels at 60F (c) Liters at Air (d) US Barrels at 60F (e) = (a) (c) Liters at Air (f) = (b) (d) Aulac Conifer 79,031,280 12,609,039 78,590,340 12,589,118 440,940 19,921 Aulac Diamond 76,500,000 12,419,301 76,060,070 12,252,855 439,930 166,446 Aulac Fortune 70,414,000 11,413,791 69,964,830 11,303,360 449,170 110,431 Aulac Venus 103,094,000 16,614,766 102,608,600 16,551,450 485,400 63,316 Global Vika 99,908,000 16,073,683 99,579,440 16,082,087 328,560 (8,404) Aulac Fortune 70,862,000 11,482,230 70,217,940 11,349,822 644,060 132,408 Global Vika 99,929,000 16,102,240 99,635,790 16,087,022 293,210 15,218 Global Vika 93,360,000 15,017,780 93,031,330 14,991,656 328,670 26,124 Maluku Palm 95,069,750 15,313,138 94,966,360 15,336,822 103,390 (23,684) Rio Daytona 80,396,810 12,935,829 80,329,940 12,946,993 66,870 (11,164) Flores Palm 111,856,000 17,988,409 111,861,170 18,017,287 (5,170) (28,878) Total 980,420,840 157,970,206 976,845,810 157,508,472 3,575,030 461,734 ========== ========== ========== ========== ========= ========= The difference of 461,734 liters between 157,970,206 volume per liters reported in SAD, and the 157,508,472 volume per liters reported in CIS (as shown in the table above), represents overpayment which pertains to the net effect of the movement in volume of the imported Jet A-1 fuel. In the present case, the volume per CIS is lower than the volume per SAD. Petitioner absorbs the equivalent losses for the overpayment of taxes, as this will not be reflected in the SAD, nor refunded by the BOC to the petitioner. As such, it has no effect on the petitioner's claim for refund. 86 Based on the foregoing, We have confirmed that (a) the importations subject of the present claim were made between January 1, 2017 to December 31, 2017, and (b) the excise taxes due thereon were paid ( i.e. , P455,143,252.45). The tax-paid fuel subject of the present claim were sold subsequently to international carriers and tax-exempt entities. Movements of fuel inventory were properly supported and in accordance with prescribed procedure. Further verification revealed that 188,634,110 liters and 88,031,017 liters of locally-produced Jet A-1 fuel and unleaded gasoline, respectively, were removed/withdrawn from the PBR and subsequently transferred to various depots; all such movements are in order and properly supported, as shown below: AaCTcI WC vs. Removals per PBR-ORB signed by the ROOP, SAP-Generated PBR-ORB, COC/DN (Volumes in Liters at Air). 87 Particulars Jet A-1 Fuel Unleaded Gasoline Fuel Exh. Related Depots Other Depots Total Exh. Related Depots Per WC P-206 344,098,741 P-312 88,031,017 Per PBR-ORB-Removals and COC/DN Locally Manufactured (CTA Case No. 9993) P-205 P-311 Davao Depot 8,560,072 - 8,560,072 - Iloilo Depot 5,476,350 - 5,476,350 - SL Harbor Depot 30,645,043 - 30,645,043 49,429,638 Mactan Depot 79,893,010 - 79,893,010 - Palawan Depot 2,034,819 - 2,034,819 - DMIA/Clark Depot 880,000 - 880,000 - Zamboanga Depot 4,102,348 - 4,102,348 - Poro Terminal - - - 38,601,379 Others - 57,042,468 57,042,468 - 131,591,642 57,042,468 188,634,110 88,031,017 Imported (CTA Case No. 10015) P-205 - Davao Depot 2,134,921 - 2,134,921 - Iloilo Depot 8,069,483 - 8,069,483 - Navotas Depot 32,202,467 - 32,202,467 - Rosario Terminal 1,192,509 - 1,192,509 - SL Harbor Depot 92,848,311 - 92,848,311 Mactan Depot 17,061,555 - 17,061,555 - Palawan Depot 608,997 - 608,997 - Others - 1,346,388 1,346,388 - 154,118,243 1,346,388 155,464,631 344,098,741 88,031,017 Difference - - The total removal/withdrawal of Jet A-1 fuel and unleaded gasoline fuel from the PBR corresponds to the total volume received by various depots, as shown below: acEHCD COC/WC vs. Depot's LS-Receipts and ORB-Receipts for Jet A-1 Fuel (Volume in Liters). 88 Per COC/WC-Withdrawals from PBR (Exhibit No. P-205) Per Depot's LS-Receipts Per Depot's ORB-Receipts Depots Locally-Produced (CTA Case No. 9993) Imported (CTA Case No. 10015) Total Exh. Gross Volume Received In-transit Gain (Loss) Net Volume to be Received Exh. Volume Received by Depot Davao 8,560,072 2,134,921 10,694,993 P-224 10,694,993 (94,534) 10,600,459 P-233 10,600,459 Iloilo 5,476,350 8,069,483 13,545,833 P-226 13,545,833 (90,096) 13,455,737 P-234 13,455,737 Navotas - 32,202,467 32,202,467 P-227 32,202,467 (108,389) 32,094,078 P-235 32,094,078 Rosario - 1,192,509 1,192,509 P-228 1,192,509 (2,521) 1,189,988 P-236 1,189,988 SL Harbor 30,645,043 92,848,311 123,493,354 P-229 123,493,354 (247,280) 123,246,074 P-237 123,246,074 Mactan 79,893,010 17,061,555 96,954,565 P-230 96,954,565 (243,817) 96,710,748 P-238 96,710,748 Palawan 2,034,819 608,997 2,643,816 P-231 2,643,816 (75,716) 2,568,100 P-239 2,568,100 Zamboanga 4,102,348 - 4,102,348 P-232 4,102,348 (9,601) 4,092,747 P-240 4,092,747 130,711,642 154,118,243 284,829,885 284,829,885 (871,954) 283,957,931 283,957,931 DMIA/Clark 880,000 - 880,000 - - - P-225 880,000 Total 131,591,642 154,118,243 285,709,885 284,829,885 (871,954) 283,957,931 284,837,931 ========== ========== ========== ========== ======= ========== ========== COC/WC vs. SRR-Receipts and SAP-PMMT-Receipts for Unleaded Gasoline Fuel (Volume in Liters). 89 Depot/Type of Locally Manufactured Unleaded Gasoline Fuel Per COC/WC-Withdrawals from PBR (Exhibit No. P-312) (a) Per SRR-Receipts Per SAP-PMMT-Receipts Difference Exhibit No. Gross Volume Received (b) In-transit Gain (Loss) (c) Net Volume to be Received (d) = (b) + (c) Exhibit No. Volume Received (e) COC/WC vs. SRR (f) = (a) (b) SRR vs. SAP-PMMT (g) = (d) (e) Poro Terminal Unleaded (Base) Gasoline Fuel 38,601,379 P-324 38,601,379 (130,024) 38,471,355 P-322/P-323 38,471,355 - - SL Harbor Depot Unleaded (Base) Gasoline Fuel 29,611,359 P-325 29,611,359 (109,955) 29,501,404 P-319 29,501,404 - - Unleaded (Blaze) Gasoline Fuel 19,818,279 P-326 19,818,279 (50,229) 19,768,050 P-320/P-321 19,768,050 - - Total 88,031,017 88,031,017 (290,208) 87,740,809 87,740,809 - - ========= ========= ======= ========= ========= ===== ===== Sales and delivery of locally-produced and imported fuel to international carriers and tax-exempt entities had been established. As discussed above, the excise taxes paid on these petroleum products are refundable only upon proof that these were sold and delivered subsequently to international carriers and tax-exempt entities, as provided under Section 135 of the Tax Code. 90 EcTCAD In this regard, Petron Corporation alleged that it sold an aggregate volume of 126,724,273 liters of locally-produced and imported Jet A-1 and unleaded gasoline fuel to various international air carriers and tax-exempt entities. The ICPA verified the volumes, as alleged by petitioner. The sales of locally-produced Jet A-1 and unleaded gasoline fuel at volumes of 1,868,838 and 838,200 liters, respectively, are itemized as follows: 91 Jet A-1 Fuel Unleaded Gasoline Fuel Customer Volume in Liters Amount of Excise Taxes Paid at P3.67 Volume in Liters Amount of Excise Taxes Paid at P4.35 1. International Air Carriers Cebu Air, Inc. 21,151 77,624.17 China Eastern Airlines 242,860 891,296.20 China Southern Airlines 35,051 128,637.17 Donghai Jet Co. Ltd. 3,834 14,070.78 Pal Express 928,167 3,406,372.89 Phil. Air Asia 1,203 4,415.01 Philippine Airlines 8,829 32,402.43 Click Aviation/Pan Pacific Air 170,158 624,479.86 Raya Airways Sdn. Bhd. 16,645 61,087.15 Silk Air 9,349 34,310.83 Thai Lion C/O World Fuel 14,419 52,917.73 World Fuel 18,530 68,005.10 Zest Air 6,150 22,570.50 Subtotal 1,476,346 P5,418,189.82 - - 1. Tax-exempt Entities or Agencies covered by Tax Treaties, Conventions, and Other International Agreements Asian Development Bank 660,000 P2,871,000.00 DESC-Multi Service 379,569 P1,393,018.23 DESC-Davao Intl. Airport 2,869 10,529.23 DESC-Mactan Cebu Intl. Airp. 2,880 10,569.60 DESC-Multi Service-Iloilo 1,339 4,914.13 DESC-Multi Service-Puerto Prinsesa 5,835 21,414.45 Subtotal 392,492 P1,440,445.64 660,000 P2,871,000.00 2. Entities which are by law exempt from direct or indirect taxes Amilao, Diosdado J. 102,600 446,310.00 Omni Aviation Corp.-La Union 75,600 328,860.00 Subtotal - - 178,200 P775,170 TOTAL 1,868,838 P6,858,635.46 838,200 P3,646,170.00 ========== ========== ========= ========== In addition, the sales of imported Jet A-1 fuel with a volume of 124,017,235 liters are itemized below: SDHTEC Customer JET A-1 Fuel Volume in Liters Amount of Excise Taxes Paid at P3.67 Tax-exempt Entities DESC-Mactan Cebu International Air 92 1,212 P4,448.04 DESC-Multi Service-Laoag 93 2,207 8,099.69 DESC-Multi Service-Puerto Prinsesa 94 8,751 32,116.17 Subtotal 12,170 P44,663.90 International Air Carriers Aeg Fuel-T'way Air 257,735 945,887.45 Air Asia Berhad 563,812 2,069,190.04 Air Busan 767,558 2,816,937.86 Air Hongkong 321,517 1,179,967.39 Air Niugini C/O Cosmo Oil 588,105 2,158,345.35 Air Philippines Corp. 60,288 221,256.96 Asiana Airlines 462,658 1,697,954.86 Cathay Pacific 4,169,790 15,303,129.30 Cebu Air, Inc. 44,765 164,287.55 Cebu Pacific 14,277,605 52,398,810.35 China Eastern Airlines 258,489 948,654.63 China Southern Airlines 715,091 2,624,383.97 Delta Airlines 523,568 1,921,494.56 Dragon Air 8,760 32,149.20 Emirates Airlines 8,197,103 30,083,368.01 Etihad Airways 3,702,769 13,589,162.23 Eva Air C/O Cosmo Oil 140,035 513,928.45 Federal Express Corporation 6,847 25,128.49 Gulf Air 2,538,421 9,316,005.07 Hongkong Express C/O World Fuel 24,639 90,425.13 Jeju Air 1,024,089 3,758,406.63 Jin Air 1,425,738 5,232,458.46 Juneyao Airlines C/O Aeg Fuel 119,682 439,232.94 Klm Royal Dutch 38,388 140,883.96 Korean Air 701,004 2,572,684.68 Kuwait Airways 3,488,388 12,802,383.96 Lucky Air C/O Aeg Fuel 149,536 548,797.12 Myanmar National Airline C/O World Fuel 9,862 36,193.54 Neptune Air Sdn. Bhd. 10,815 39,691.05 Okay Airways 102,868 377,525.56 Oman Air 2,584,863 9,486,447.21 Pal Express 471,359 1,729,887.53 Phil. Air Asia 2,615,995 9,600,701.65 Philippine Airlines 52,313,029 191,988,816.43 Pan Pacific Intl. 537,421 1,972,335.07 Qatar Airways 6,018,320 22,087,234.40 Saudi Airlines 9,610,889 35,271,962.63 Scoot Tiger Air 172,253 632,168.51 Shenzhen Airlines C/O World Fuel 40,658 149,214.86 Sichuan Airlines C/O Aeg Fuel 248,750 912,912.50 Silk Air 281,491 1,033,071.97 Singapore Airlines 1,197,840 4,396,072.80 Special Flight Detachment-Russia 106,000 389,020.00 Tiger Airways 48,718 178,795.06 Vanilla Air C/O Wfs 456,457 1,675,197.19 Xiamen Air C/O Wfs 208,119 763,796.73 Zest Air 2,392,978 8,782,229.26 Subtotal 124,005,065 P455,098,588.55 TOTAL 124,017,235 P455,143,252.45 ========= ============= To engage the application of Section 135 of the Tax Code, the claimant must establish that the conditions for exemption specific to each group have been met. Sales to International Carriers For sales to the international carriers , it must be shown that (a) vendees are the international carriers of Philippine or foreign registry, (b) the fuel had been sold and delivered to such entities and will be used or consumed outside the Philippines, (c) the fuel were stored in a bonded storage tank, and (d) the fuel had been disposed of in accordance with the rules and regulations. HSAcaE In this regard, Petron Corporation presented the following documents: (a) Civil Aeronautics Board (CAB) Certifications 95 showing that its customers that are (i) international carriers of foreign registry have been issued a valid Foreign Air Carrier's Permit (FACP) to operate international air transport services between the Philippines and their country of registration and (ii) Philippine-registered international carriers 96 have been issued permit to operate domestic and international air transportation services; 97 (b) Aviation Delivery Receipts (ADR) 98 and Delivery Notes (DN) 99 showing that (i) the fuels were delivered to international air carriers or to tax-exempt entities 100 and (ii) the destination of these vendees is a foreign country; and (c) Official Register Book (ORB) , 101 WC , 102 Cargo Out-Turn Certificate (COC) , 103 /STO-Delivery Note (STO-DN) , 104 Product Movement by Movement Type (PMMT) , 105 Liquidation Statement (LS) , 106 Schedule of Receipts and Removals (SRR) , 107 Cargo Intake Certificate (CIC) , 108 Summary of Product Deliveries and Taxes Paid or Applicable Thereon (SOPD) , 109 showing that subject fuel was stored, transferred, and disposed of, with all such movements accounted for, in accordance with the applicable regulations. Sales to Tax-Exempt Entities For sales to tax-exempt entities by treaty , the claimant must establish (a) the vendee's tax-exempt status under the applicable tax treaty, convention, or international agreement, (b) the sale and delivery of fuel to and for consumption of these entities, and (c) the vendee's home country's grant of similar tax exemption relative to sales of petroleum products to Philippine carriers. As to sales to the tax-exempt entities by law , it must be shown that the vendees enjoy exemption from direct and indirect taxes. AScHCD For this purpose, petitioner submitted the following documents: (a) Department of Foreign Affairs (DFA) Certifications , 110 CAB Certifications , 111 and Air Services Agreements and/or other Agreements between the Republic of the Philippines and the international carriers' home countries 112 showing the existence of valid and effective bilateral agreements in 2017, which grants (i) the subject entities tax-exempt status and (ii) Philippine carriers, entities, or agencies a similar tax exemption; and (b) ADRs 113 showing that the subject fuel were delivered to said entities, for their consumption. Observations After verifying 114 the above-enumerated documents, We have observed the following: (1) Locally-produced Jet A-1 fuel with a volume of 53,428 liters and corresponding excise tax payments of P196,080.76 were sold to the following international carriers without a valid FACP , 115 to wit: International Air Carrier Volume in Liters Amount of Excise Taxes Paid at P3.67 Donghai Jet Co. Ltd. 3,834 P14,070.78 Raya Airways Sdn. Bhd. 16,645 61,087.15 Thai Lion C/O World Fuel 14,419 52,917.73 World Fuel 18,530 68,005.10 Total 53,428 P196,080.76 ===== ========== (2) Sales of locally-produced Jet A-1 fuel with a volume of 78,949 liters and corresponding excise tax payments of P289,742.83 to Defense Energy Support Center (DESC), which petitioner regards as a tax-exempt entity, are supported by ADRs with unreadable details ( i.e. , customer name), to wit: HESIcT Exhibit No. ADR No. Volume in Liters Amount of Excise Taxes Paid at P3.67 "P-285-1" 969810 912 P3,347.04 "P-285-7" 969839 2,121 7,784.07 "P-285-9" 969845 1,176 4,315.92 "P-285-10" 969866 11,653 42,766.51 "P-285-11" 969870 1,755 6,440.85 "P-285-12" 969873 3,073 11,277.91 "P-285-20" 969909 7,506 27,547.02 "P-285-22" 969916 1,737 6,374.79 "P-285-26" 969922 2,400 8,808.00 "P-285-57" 1014148 2,200 8,074.00 "P-285-58" 1014137 1,049 3,849.83 "P-285-59" 1014140 2,572 9,439.24 "P-285-72" 1014205 1,461 5,361.87 "P-285-73" 1014207 3,629 13,318.43 "P-285-74" 1014210 1,991 7,306.97 "P-285-77" 1014218 2,624 9,630.08 "P-285-81" 1014228 2,311 8,481.37 "P-285-82" 1014227 1,940 7,119.80 "P-285-86" 1014235 1,776 6,517.92 "P-285-87" 1014240 889 3,262.63 "P-285-88" 1014243 2,396 8,793.32 "P-285-112" 1014308 965 3,541.55 "P-285-115" 1014324 732 2,686.44 "P-285-123" 1014347 1,353 4,965.51 "P-285-147" 1014405 367 1,346.89 "P-285-191" 1064632 1,465 5,376.55 "P-285-192" 1064650 1,396 5,123.32 "P-285-193" 1064659 1,287 4,723.29 "P-285-194" 1064664 423 1,552.41 "P-285-197" 1064672 1,405 5,156.35 "P-285-203" 1064721 1,790 6,569.30 "P-285-207" 1064735 931 3,416.77 "P-285-211" 1064750 1,350 4,954.50 "P-285-213" 1064754 411 1,508.37 "P-285-215" 1064762 1,334 4,895.78 "P-285-218" 1064788 2,397 8,796.99 "P-285-220" 1064819 1,869 6,859.23 "P-285-221" 1064818 446 1,636.82 77,092 P282,927.64 "P-288-542" 1061819 583 P2,139.61 "P-288-543" 1062421 508 1,864.36 "P-288-854" 1076767 766 2,811.22 1,857 P6,815.19 Total 78,949 P289,742.83 ======== ========= (3) The tax-exempt status of Diosdado Amilao and Omni Aviation Corporation, to which sales of locally-produced unleaded gasoline with an aggregate volume of 178,200 liters and equivalent excise taxes amounting to P775,170.00 were made, was not established. (4) Imported Jet A-1 fuel with a volume of 671,833 liters and equivalent excise taxes of P2,465,627.11 were sold and delivered to the following international carriers without a valid FACP , to wit: AcICHD International Air Carrier Volume in Liters Amount of Excise Taxes Paid at P3.67 ICPA's findings Lucky Air C/O Aeg Fuel 149,536 P548,797.12 World Fuel 1. Hongkong Express C/O World Fuel 6,331 23,234.77 2. Hongkong Express C/O World Fuel 18,308 67,190.36 3. Myanmar National Airline C/O World Fuel 9,862 36,193.54 4. Neptune Air Sdn. Bhd. 10,815 39,691.05 5. Shenzhen Airlines C/O World Fuel 40,658 149,214.86 Special Flight Detachment-Russia 106,000 389,020.00 Subtotal 341,510 P1,253,341.70 Per Court's independent verification Juneyao Airlines C/O Aeg Fuel 119,682 P439,232.94 Klm Royal Dutch 38,388 140,883.96 Scoot Tiger Air 172,253 632,168.51 Subtotal 330,323 P1,212,285.41 Total 671,833 P2,465,627.11 ====== =========== (5) Sales of imported Jet A-1 fuel with a volume of 260,144 liters and corresponding excise tax payments of P954,728.48 are supported by ADRs with unreadable details ( i.e. , destination), to wit: caITAC Exhibit No. ADR No. International Carrier Destination Volume Amount of Excise Taxes Paid at P3.67 "P-282-67" 1009236 PAL Express CSX 1,743 P6,396.81 "P-282-75" 1009256 Phil. Air Asia HGH 11,021 40,447.07 "P-282-103" 1009306 PAL CTU 14,534 53,339.78 "P-282-150" 1035072 Phil. Air Asia PUS 10,530 38,645.10 "P-282-161" 1035093 PAL PUS 7,990 29,323.30 "P-282-165" 1035092 Phil. Air Asia ICN 12,595 46,223.65 "P-282-185" 1035110 Cebu Pacific Air PVG 15,380 56,444.60 "P-282-205" 1035132 Cebu Pacific Air ICN 14,116 51,805.72 "P-282-213" 1035157 PAL ICN 7,018 25,756.06 "P-282-225" 1035159 Cebu Pacific Air PVG 13,375 49,086.25 "P-282-228" 1035168 PAL PUS 5,770 21,175.90 "P-282-235" 1035188 Phil. Air Asia Intl. PVG 5,970 21,909.90 "P-282-237" 1035178 Cebu Pacific PEK 18,010 66,096.70 "P-282-242" 1035184 PAL ICN 6,710 24,625.70 "P-282-254" 1035198 PAL ICN 13,972 51,277.24 "P-282-261" 1035215 Phil. Air Asia ICN 2,190 8,037.30 "P-282-276" 1035221 Phil. Air Asia PVG 9,637 35,367.79 "P-282-282" 1035238 Cebu Pacific Air ICN 9,914 36,384.38 "P-282-283" 1035239 Cebu Pacific Air ICN 4,020 14,753.40 "P-282-299" 1035273 Phil. Air Asia HGH 405 1,486.35 "P-282-326" 1035906 Cebu Pacific PVG 13,340 48,957.80 "P-282-490" 1070136 PAL Intl. PUS 7,855 28,827.85 "P-282-595" 1070245 PAL Express Intl. CTU 1,296 4,756.32 "P-282-596" 1070247 PAL ICN 9,740 35,745.80 "P-282-729" 1071851 Phil. Air Asia HGH 1,822 6,686.74 Sub-total 218,953 P803,557.51 P-283-793" 1044372 Cebu Pacific Kuala Lumpur 13,859 50,862.53 "P-283-2521" 1050005 Cebu Pacific Hanoi 15,473 56,785.91 Sub-total 29,332 P107,648.44 "P-286-132" 1066764 PAL Express 11,859 43,522.53 Total 260,144 P954,728.48 ====== ========== (6) Imported Jet A-1 fuel with a volume of 269,725 liters and corresponding excise tax payments amounting to P989,890.75 were sold and in January 2018 and, thus, out-of-period : TAIaHE Sales Invoices Aviation Delivery Receipts Exh. SI No. Customer Vol. Amount of Excise Taxes Paid at P3.67 Exh. ADR No. Vol. "P-292-85" 1009571089 Pan Pacific Intl. 61,899 P227,169.33 "P-282-752" 1107846 4,762 "P-282-753" 1107851 14,150 "P-282-754" 1107852 520 "P-282-755" 1107855 1,280 "P-282-761" 1107864 11,907 "P-282-762" 1107878 15,261 "P-282-763" 1107879 14,019 61,899 P227,169.33 61,899 "P-292-86" 1009571119 Okay Airways 23,760 87,199.20 "P-282-756" 1107848 8,820 "P-282-764" 1107871 14,940 23,760 P87,199.20 23,760 "P-292-87" 1009573501 Jin Air Co., Ltd. 13,190 48,407.30 "P-282-765" 1107872 13,190 13,190 P48,407.30 13,190 "P-292-88" 1009571077 Cebu Pacific-Intl. 47,056 172,695.52 "P-282-766" 1107853 14,554 "P-282-767" 1107873 14,132 "P-282-768" 1107885 18,370 47,056 P172,695.52 47,056 "P-292-89" 1009571080 PAL Express 18,838 69,135.46 "P-282-757" 1107847 2,460 "P-282-758" 1107850 15,021 "P-282-769" 1107876 1,357 18,838 P69,135.46 18,838 "P-292-90" 1009571084 Philippine Airlines 41,450 152,121.50 "P-282-759" 1107849 10,682 "P-282-760" 1107856 4,210 "P-282-770" 1107858 3,178 "P-282-771" 1107866 6,600 "P-282-772" 1107868 6,540 "P-282-773" 1107882 10,240 41,450 P152,121.50 41,450 "P-292-91" 1009571094 Zest Air 58,301 213,964.67 "P-282-774" 1107857 13,830 "P-282-775" 1107859 11,510 "P-282-776" 1107863 10,501 "P-282-778" 1107870 10,720 "P-282-779" 1107883 11,740 58,301 P213,964.67 58,301 "P-292-93" 1009573537 Air Asia Berhad 5,231 19,197.77 "P-282-781" 1107875 5,231 5,231 P19,197.77 5,231 Total 269,725 P989,890.75 TOTAL 269,725 ======== ========== ====== (7) Imported Jet A-1 fuel issued by SL Harbor to JOCASP/NAIA depot 116 was overstated by a volume of 4,958 liters with equivalent excise tax payments of P18,195.86. 117 For the foregoing reasons, the Court disallows Items 1 to 7 above from the present claim. Summary Thus, in sum, We find that Petron Corporation has substantiated its claim to the extent of P459,958,622.12 , representing excise tax payments for petitioner's locally produced Jet A-1 fuel and unleaded gasoline, and excise taxes paid for its importations of Jet A-1 fuel, computed as follows: ICHDca Particulars Vol. Equivalent Excise Tax Vol. Equivalent Excise Tax Total Total Claim for Refund 2,707,038 P10,504,805.46 124,017,235 P455,143,252.45 P465,648,057.91 Less: Disallowances International Carriers without valid FACP 53,428 196,080.76 671,833 2,465,627.11 2,661,707.87 ADRs with unreadable details 260,144 954,728.48 954,728.48 Sale to DESC supported by ADRs with unreadable details 78,949 289,742.83 289,742.83 Sale to taxable entities Amilao, Diosdado J. 102,600 446,310.00 446,310.00 Omni Aviation Corp. 75,600 328,860.00 328,860.00 Over-recording by JOCASP/NAIA of imported Jet A-1 fuel received from SL Harbor Depot 4,958 18,195.86 18,195.86 Out-of-period sale of imported Jet A-1 fuel 269,725 989,890.75 989,890.75 Total Disallowances 310,577 P1,260,993.59 1,206,660 P4,428,442.20 P5,689,435.79 Total Substantiated Excise Taxes Paid 1,588,261 P5,597,641.87 122,810,575 P450,714,810.25 P459,958,622.12 ======== =========== ========= ============ =========== WHEREFORE , in light of the foregoing considerations, the consolidated Petitions for Review filed by Petron Corporation are PARTIALLY GRANTED . Respondent Commissioner of Internal Revenue is ORDERED to refund or issue a tax credit certificate in favor of petitioner in the reduced amount of P459,958,622.12 representing erroneously paid excise taxes on petroleum products sold to international carriers and tax-exempt entities between January 1, 2017 to December 31, 2017. cDHAES SO ORDERED. (SGD.) MARIAN IVY F. REYES-FAJARDO Associate Justice Roman G. del Rosario, P.J. , concurs. Catherine T. Manahan, J. , inhibited. Footnotes 1. Petitioner's Amended Articles of Incorporation, Exhibit "P-2-L," Docket Vol. IV, p. 2009. 2. Par. 1, Admitted Facts, Joint Stipulation of Facts and Issue (JSFI), Docket (CTA Case No. 10015) Vol. 3, p. 1141. 3. Par. 2, Admitted Facts, JSFI, Docket (CTA Case No. 9993) Vol. III, p. 976; Par. 2, Admitted Facts, JSFI, Docket (CTA Case No. 10015) Vol. III, p. 1141. 4. Par. 2, Admitted Facts, JSFI, Docket (CTA Case No. 9993) Vol. III, p. 976; Par. 2, Admitted Facts, JSFI, Docket (CTA Case No. 10015) Vol. III, p. 1141. 5. Applications for Tax Credits/Refunds (BIR Form No. 1914). 6. Exhibits "P-8-L," Docket Vol. IV, pp. 2049-2050; Docket Vol V, pp. 3000-3001. 7. Docket (CTA Case No. 9993) Vol. I, pp. 10 to 36. 8. Docket (CTA Case No. 10015) Vol. 1, pp. 12 to 41. 9. Docket (CTA Case No. 9993) Vol. I, pp. 101 to 109. 10. Docket (CTA Case No. 10015) Vol. 1, pp. 82 to 89. 11. Resolution dated July 26, 2019, Docket (CTA Case No. 9993) Vol. III, p. 987; Resolution dated September 11, 2019, Docket (CTA Case No. 10015) Vol. 3, p. 1151. 12. Docket (CTA Case No. 9993) Vol. III, pp. 976 to 984; Docket (CTA Case No. 10015) Vol. 3, pp. 1141 to 1149. 13. Docket (CTA Case No. 10015) Vol. 3, pp. 1215 to 1223; Docket (CTA Case No. 10015) Vol. 3, pp. 1215 to 1223. 14. Respondent's Compliance dated March 6, 2019, Docket (CTA Case No. 10015) Vol. 1, pp. 93 to 95. 15. Docket (CTA Case No. 9993) Vol. III, pp. 1174 to 1182; Docket (CTA Case No. 10015) Vol. 3, pp. 1253 to 1261. 16. Minutes of the hearing held on, and Order dated, December 3, 2019, Docket (CTA Case No. 9993) Vol. III, pp. 1184 to 1186; Resolution dated February 11, 2020, Docket (CTA Case No. 10015) Vol. 3, pp. 1283 to 1284. 17. Exhibit "P-193", Docket (CTA Case No. 9993) Vol. I, pp. 210 to 221; Minutes of the hearing held on, and Order dated, December 3, 2019, Docket (CTA Case No. 9993) Vol. III, pp. 1184 to 1186. 18. Exhibit "P-194-L", Docket (CTA Case No. 9993) Vol. I, pp. 263 to 277; Exhibit "P-194-I", Docket (CTA Case No. 10015) Vol. 1, pp. 442 to 454; Minutes of the hearing held on, and Order dated, March 10, 2020, Docket (CTA Case Nos. 9993 & 10015) Vol. III, pp. 1250 to 1252. 19. Exhibit "P-190", Docket (CTA Case No. 9993) Vol. II, pp. 345 to 376; Exhibit "P-191", Docket (CTA Case No. 9993) Vol. III, pp. 1059 to 1066; Minutes of the hearing held on, and Order dated, October 15, 2019, Docket (CTA Case No. 9993) Vol. III, pp. 1079 to 1084; Exhibit "P-120", Docket (CTA Case No. 10015) Vol. 2, pp. 551 to 572; Minutes of the hearing held on, and Order dated, November 7, 2019, Docket (CTA Case No. 10015) Vol. 3, pp. 1244 to 1246. 20. Exhibit "P-195-L", Docket (CTA Case Nos. 9993 & 10015) Vol. III, pp. 1282 to 1288; Exhibit "P-196", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 1729 to 1814; Minutes of the hearing held on, and Order dated, November 4, 2020, Docket (CTA Case Nos. 9993 & 10015) Vol. III, pp. 1300 to 1303, and 1306 to 1308, respectively; Minutes of the hearing held on, and Order dated, January 27, 2021, Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 1824 to 1833. 21. Oath of Commission dated November 4, 2020, Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1305. 22. Exhibit "P-192", Docket (CTA Case No. 9993) Vol. III, pp. 1136 to 1147; Minutes of the hearing held on, and Order dated, November 19, 2019, Docket (CTA Case No. 9993) Vol. III, pp. 1162 to 1164. 23. Exhibit "P-198", Docket (CTA Case Nos. 9993 & 10015) Vol. III, pp. 1354 to 1370; Minutes of the hearing held on, and Order dated, January 27, 2021, Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 1824 to 1833. 24. Exhibit "P-199", Docket (CTA Case No. 10015) Vol. 1, pp. 486 to 495; Minutes of the hearing held on, and Order dated, January 27, 2021, Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 1828 to 1833. 25. Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, pp. 1610 to 1698. 26. Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 1911 to 2003. 27. Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 3065 to 3067. 28. Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 3088 to 3099. Also see Resolution dated October 19, 2022, Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 3156 to 3168. 29. Comment (on Petitioner's Formal Offer of Evidence with Manifestation), Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 3065 to 3067. 30. For respondent, Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 3100 to 3110; For petitioner, Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 3169 to 3230. 31. Minute Resolution dated December 5, 2022, Docket (CTA Case Nos. 9993 & 10015) Vol. V, p. 3232. 32. G.R. No. 211303, June 15, 2021. 33. Section 229, Tax Code. 34. Section 148 of the Tax Code provides, "[t]here shall be collected on refined and manufactured mineral oils and motor fuels, the following excise taxes which shall attach to the goods hereunder enumerated as soon as they are in existence as such . . ." (Emphasis supplied). 35. SECTION 130. Filing of Return and Payment of Excise Tax on Domestic Products. (A) Persons Liable to File a Return, Filing of Return on Removal and Payment of Tax. (1) x x x (2) Time for Filing of Return and Payment of the Tax. Unless otherwise specifically allowed, the return shall be filed and the excise tax paid by the manufacturer or producer before removal of domestic products from place of production: Provided, That the excise tax on locally manufactured petroleum products and indigenous petroleum levied under Sections 148 and 151 (A) (4), respectively, of this Title shall be paid within ten (10) days from the date of removal of such products for the period from January 1, 1998 to June 30, 1998; within five (5) days from the date of removal of such products for the period from July 1, 1998 to December 31, 1998; and, before removal from the place of production of such products from January 1, 1999 and thereafter x x x. 36. Exhibits "P-206" to "P-206-2", "P-208", "P-312" to "P-312-1", ICPA USB. 37. Exhibit "P-207", ICPA USB; as per Exhibit "P-8-L", Docket (CTA Case Nos. 9993 & 10015) Vol. V, p. 2049. 38. Exhibit "P-9-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, p. 2055; and Exhibit "P-8-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2048 to 2054. 39. Petition for Review , Docket (CTA Case No. 9993) Vol. IV, pp. 10 to 30. 40. 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. 41. Exhibits "P-202", "P-202-12 (1/2)" to "P-202-12 (1/2)", n ICPA USB. 42. Exhibit "P-20", Docket (CTA Case Nos. 9993 & 10015) Vol. V, p. 3005; Exhibit "P-19", Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 2999 to 3004. 43. Petition for Review , Docket (CTA Case No. 10015) Vol. 1, pp. 12 to 33. 44. See Pilipinas Shell Petroleum Corp. v. Commissioner of Internal Revenue , G.R. No. 211303, June 15, 2021. 45. See Pilipinas Shell Petroleum Corp. v. Commissioner of Internal Revenue , G.R. No. 211303, June 15, 2021. 46. Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1626. 47. Excise tax rate for Jet A-1 fuel and unleaded gasoline fuel is P3.67/liter and P4.35/liter, respectively. 48. Question & Answer No. 26, Exhibit "P-190", Docket (CTA Case Nos. 9993 & 10015) Vol. II, pp. 350 to 351. 49. Question & Answer No. 9, Exhibit "P-198", Docket (CTA Case No. 10015) Vol. 3, pp. 1356 to 1357. 50. Question & Answer No. 9, Exhibit "P-194-L", Docket (CTA Case No. 9993) Vol. I, pp. 263 to 278. 51. Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, pp. 1629-1631. 52. Exhibit "P-5", Docket (CTA Case No. 9993) Vol. I, p. 307; See also Exhibit "P-343-1." 53. BIR Form No. 261, ORB, shows the movements ( i.e. , incoming and outgoing) of the stocks/petroleum products at the particular registered facilities or locations, which in the case of the Petitioner, are the PBR and the depots. Pursuant to RR No. 13-77 and RMC No. 024-12, oil companies are required to maintain ORBs and submit, on a regular basis, the transcript sheets thereof to the BIR. 54. BIR Form No. 2200-P. 55. BIR Form No. 2298. 56. BIR Form No. 2331. 57. SUBJECT: Petroleum Products Regulations, October 10, 1977. 58. SUBJECT: Amending Certain Provisions of Existing Revenue Regulations on the Granting of Outright Excise Tax Exemption on Removal of Excisable Articles Intended for Export or Sale/Delivery to International Carriers or to Tax-Exempt Entities/Agencies and Prescribing the Provisions for Availing Claims for Product Replenishment, January 22, 2008. 59. SUBJECT: Prescribing the Guidelines and Procedures in the Processing and Issuance of Authority to Release Imported Goods (ATRIG) for Excise and Value-Added Tax Purposes, October 28, 2002. 60. SUBJECT: Clarifying the Issue on the Maintenance and Submission of Official Register Books on Tax-Paid Petroleum Products Stored on Formerly Bonded Storage Facilities, May 2, 2012. 61. Petron Corporation v. Commissioner of Internal Revenue , August 1, 2023. 62. Exhibit "P-205." 63. Exhibit "P-311." 64. Table 10, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, pp. 1640 to 1641. 65. Exhibit "P-208." 66. Exhibit "P-206." 67. Exhibit "P-312." 68. Consist of Locally Manufactured Jet A-1 fuel of 188,634,110 liters and Imported Jet A-1 fuel of 155,464,631 liters; See Table 8, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1639. 69. Exhibit "P-208." 70. Tables 9 and 11, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, pp. 1640 to 1641. 71. Table 11, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1641. 72. Sum of P1,262,842,379.47 excise taxes due for Jet A-1 fuel and P382,934,923.95 excise taxes due for unleaded gasoline fuel. 73. Exhibits "P-207" and "P-208". 74. Question & Answer No. 15, Exhibit "P-198", Docket (CTA Case No. 10015) Vol. 3, p. 1363. 75. 157,970,206 liters per SAD multiplied by excise tax rate of P3.67. 76. Exhibits "P-202-1" to "P-202-11." 77. Exhibits "P-202-12" to "P-202-33." 78. Exhibits "P-202-12" to "P-202-34." 79. Exhibits "P-202-45" to "P-202-55." 80. Exhibits "P-202-56" to "P-202-66." 81. Table 4, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1637. 82. Importation documents consist of SADs (marked as Exhibit Nos. P-202-1 to P-202-11), CPRs (marked as Exhibit Nos. P-202-12 to P-202-33), BOC Certifications (marked as Exhibit Nos. P-202-34 to P-202-44) and BIR ATRIG (marked as Exhibit Nos. P-202-45 to P-202-55). 83. Exhibits "P-202-56" to "P-202-66." 84. Based on Volume in Liters per SAD. 85. Table 5, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1637. 86. Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, pp. 1637 to 1638. 87. Table 8, Exhibit "P-197", Docket (CTA Case No. 9993) Vol. III, p. 1639. 88. Table 13, Exhibit "P-197", Docket (CTA Case No. 9993) Vol. III, p. 1643. 89. Table 14, Exhibit "P-197", Docket (CTA Case No. 9993) Vol. III, p. 1646. 90. See Pilipinas Shell Petroleum Corp. v. Commissioner of Internal Revenue , G.R. No. 211303, June 15, 2021. 91. Exhibit "P-200." 92. Exhibits "P-288-541" and "P-288-957." 93. Exhibits "P-284-32" and "P-284-35." 94. Exhibit "P-289-2." 95. Exhibits "P-341-1 (1/4)" to "P-341-1 (4/4)." 96. Cebu Air, Inc. (Cebu Pacific Air), Philippine Airlines, Philippines AirAsia, Inc. (formerly Zest Air, Inc./Air Asia Zest), PAL Express (formerly Air Philippines Corporation/Airphil Express), and Astro Air International, Inc. (doing business as Pan Pacific Airlines). 97. Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1657. 98. Exhibits "P-280" to "P-289." 99. Prepared by petitioner's representative in the depot ( i.e. , Poro Terminal and SL Harbor Depot) which records the direct delivery of unleaded gasoline fuel to tax-exempt entities, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1635; Exhibits "P-333-1" to "P-333-33", "P-334-1" to "P-334-29", "P-335-1" to "P-335-36." 100. Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1642. 101. Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, 1632; Question & Answer Nos. 11 to 13, Exhibit "P-194-L", Docket (CTA Case No. 9993) Vol. I, pp. 266 to 267; BIR Form No. 261, Exhibits "P-203-1" to "P-203-12"; Exhibits "P-205-1" to "P-205-13"; Exhibits "P-225-1" to "P-225-3", "P-233-1" to "P-233-8", "P-234-1" to "P-234-8", "P-235-1" to "P-235-6", "P-236-1", "P-237-1" to "P-237-11", "P-238-1" to "P-238-11", "P-239-1" to "P-239-6", "P-240-1" to "P-240-4", "P-250-1" to "P-250-5", "P-253-1" to "P-253-3", "P-254-1" to "P-254-3", "P-256-1", "P-257-1" to "P-257-4", "P-258-1" to "P-258-9." 102. BIR Form No. 2231, Exhibits "P-206-1" to "P-206-177"; "P-312-1" to "P-312-79." 103. SAP-generated internal document prepared at the PBR which support the recording of removals of locally manufactured and imported Jet A-1 fuels and locally manufactured unleaded gasoline fuel in the petitioner's SAP-generated ORB and General Ledger (GL)-SAP, Exhibits "P-205-14" to "P-205-149", "P-205-164" to "P-205-166", "P-205-171", "P-205-173" to "P-205-201", "P-205-204"; "P-311-1" to "P-311-79"; Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, pp. 1631 to 1632; Question & Answer No. 20, Exhibit "P-194-L", Docket (CTA Case No. 9993) Vol. I, pp. 269 to 270. 104. Exhibits "P-205-150" to "P-205-163", "P-205-167" to "P-205-170", "P-205-172", "P-205-202" to "P-205-203", "P-271-1-1" to "P-271-1-134", "P-271-2-1" to "P-271-2-987", "P-271-3-1" to "P-271-3-862", "P-271-4-1" to "P-271-4-2007", "P-271-5-1" to "P-271-5-454", "P-271-6-1" to "P-271-6-322", "P-271-7-1" to "P-271-7-136", "P-271-8-1" to "P-271-8-738", "P-271-9-1" to "P-271-9-891." 105. Supports the recording in the GL-SAP System of locally manufactured Jet A-1 fuel and unleaded gasoline fuel and imported Jet A-1 fuel directly transferred from the PBR to various depots, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1631; Exhibits "P-213-1-1" to "P-213-1-15", "P-214-1-1" to "P-214-1-372", "P-215-1-1" to "P-215-1-495", "P-216-1-1" to "P-216-1-408", "P-217-1-1" to "P-217-1-428", "P-218-1-1" to "P-218-1-1036", "P-219-1-1" to "P-219-1-32", "P-220-1-1" to "P-220-1-3392", "P-221-1-1" to "P-221-1-973", "P-222-1-1" to "P-222-1-56", "P-223-1-1" to "P-223-1-169." 106. Prepared by the depot on a daily basis to account for the movement of every shipment or receipt of Jet A-1 fuel (inventories) and its corresponding deliveries to another facility ( i.e. , SL Harbor depot to Laoag Into-Plane (ITP) and JOCASP/NAIA depot, Rosario Terminal and Navotas depot to JOCASP/NAIA depot, Palawan and Mactan depots directly to customers, Iloilo depot to Kalibo ITP, Bacolod ITP and Iloilo ITP, and Zamboanga depot to Zamboanga refueller) or sales to international air carriers and to tax-exempt entities, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1633; Exhibits "P-224-1" to "P-224-10", "P-242-1" to "P-242-3", "P-226-1" to "P-226-12", "P-227-1" to "P-227-23", "P-228-1", "P-229-1" to "P-229-85", "P-230-1" to "P-230-50", "P-231-1" to "P-231-7", "P-232-1" to "P-232-4", "P-242-1" to "P-242-3", "P-259-1" to "P-259-10", "P-260-1" to "P-260-7", "P-261-1" to "P-261-11", "P-262-1" to "P-262-23", "P-263-1", "P-264-1" to "P-264-65","P-265-1" to "P-265-29", "P-266-1" to "P-266-4", "P-267-1" to "P-267-41." 107. Used to account for the movement of every shipment of unleaded (base) gasoline fuel by the Poro Terminal and SL Harbor depot, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1633; Exhibits "P-324-1" to "P-324-12", "P-325-1" to "P-325-12", "P-326-1" to "P-326-12." 108. SAP-generated internal control document prepared at the PBR and supports the recording of the transaction in the PBR-ORB and in the GL, which records the movement of imported Jet A-1 fuel, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1631; Exhibits "P-204-1" to "P-204-11." 109. SAP-generated document where petitioner summarizes all withdrawals made during the day, Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1632; Exhibits "P-208-1" to "P-208-173." 110. Exhibits "P-341-2 (1/4)" to "P-341-2 (4/4)". 111. Exhibit "P-88", Docket (CTA Case Nos. 9993 & 10015) Vol. II, pp. 689 to 692. 112. Exhibits "P-91-L" and "P-91-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2401 to 2413; Exhibits "P-92-L" and "P-92-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2414 to 2426; Exhibits "P-93-L" and "P-93-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2427 to 2446; Exhibits "P-94-L" and "P-94-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2447 to 2458; Exhibits "P-95-L" and "P-95-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2459 to 2483; Exhibits "P-96-L" and "P-96-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2484 to 2499; Exhibits "P-97-L" and "P-97-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2500 to 2515; Exhibits "P-98-L" and "P-98-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2516 to 2527; Exhibits "P-107-L" and "P-107-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 2618 to 2649; Exhibits "P-99-L" and "P-99-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2528 to 2540; Exhibits "P-100-L" and "P-100-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2541 to 2553; Exhibits "P-101-L" and "P-101-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. IV, pp. 2554 to 2570; Exhibit "P-102", Docket (CTA Case Nos. 9993 & 10015) Vol. II, pp. 863 to 867; Exhibits "P-103-L" and "P-103-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 2572 to 2584; Exhibits "P-104-L" and "P-104-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 2585 to 2597; Exhibits "P-105-L" and "P-105-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 2598 to 2611; Exhibits "P-106-L" and "P-106-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 2613 to 2617; Exhibits "P-108-L" and "P-108-A-L", Docket (CTA Case Nos. 9993 & 10015) Vol. V, pp. 2650 to 2673. 113. See Note 98. 114. ICPA verification procedures and the Court's independent verification. 115. Table 22: International Air Carriers not traced to CAB Certification, Exhibit "P-197," Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1658. 116. Exhibit "P-264." 117. See Table 16: Depot LS-Issuances vs. SAP PMMT-Issuances and Depot/ITP/Refueller LS-Receipts (Volume in Liters), Exhibit "P-197", Docket (CTA Case Nos. 9993 & 10015) Vol. III, p. 1649. n Note from the Publisher: Copied verbatim from official document.